Knight Frank Report Declares Dubai The Top Performing Real Estate Of Q1 2012Tuesday, May 22, 2012
The latest Knight Frank Prime Global Cities Index shows that Dubai has outperformed the global property markets in Q1 of 2012. From December 2011 to March 2012, the index showed that Dubai experienced a four percent rise. This rise has helped Dubai to emerge as the world’s top performing real estate market in the world putting it ahead of London and Jakarta, the realty markets of which rose by 2.7% and 3.3% respectively.
Over the past 12 months, Dubai house prices inched up by 0.3%. Despite that minute recovery, the Knight Frank Prime Global Cities Index shows an overall fall in Q1 since 2009 because the property prices have fallen by 0.4% on average. Nairobi showed an increase of 24.2% and this performance helped it become the strongest performing prime global city over the last 12 months. Miami, London and Jakarta also recorded double digit increases. The stats till March 2012 show that the index rose 1.4% in the past 12 months.
Frank says that due to several reasons like the Eurozone’s debt debacle, elections in Greece, France and Russia coupled with the fact that the cooling measures in Asia’s are showing no signs of stopping, the first three months of 2012 could not bring any significant new momentum. Some luxury buyers did not invest and just observed their market trends.
The Asia-Pacific Research Director at Knight Frank, Nicholas Holt, said that the overall index is expected to remain subdued in the following year and it seems that we are on the cusp of the new deflationary cycle. This deflationary cycle is expected in the prices of luxury global houses. It also said that the index is expected to fluctuate between marginal price falls and rises.
Jones Lang LaSalle said last month that Dubai property prices have bottomed out. Though the f villas sales have increased by 3% as compared to the Q3 of 2008, these prices are still 25% lower. It also highlighted that apartment sales also remained 34% lower in first three months of 2012 as compared to Q3 of 2008 but an overall price stability was there.
Until now, home prices in Dubai real estate market have fallen by more than 60% on average. In the residential sector of the market, around 3,000 units were added to the market during the first three months of 2012. By the end of 2014, around 43,000 more units are expected to be added to Dubai real estate market.