Knight Frank Reported No Change In Dubai House Prices During Q1Monday, June 04, 2012
According to Knight Frank Global House Price Index, prices of houses in Dubai maintained their status quo during Q1. The prices were down by 0.3 percent in comparison to the last six months of 2011 but they have remained flat ever since. As per the index, prices in Dubai have fallen 1.1% on the year-earlier period.
This ranks Dubai on 29th position in the list of 53 places having renowned real estate sectors in the world. The index showed that Brazil was the top performer over the past year, since it showed a price increase of 23.5%, since Q1 2011. The index also showed that India, Austria and Estonia also recorded double digit price rises during the same period.
On the other hand with 16.3% drop in prices, Ireland remained the worst performing real estate sector during the same period. Due to the Euro zone crises, Portugal and Greece took the other two bottom places. Though the prices remained flat during the first three months of 2012 yet the annual price growth slipped below 1% for the very first time since Q4 2009.
Moreover, Knight Frank highlighted that the next 3-6 months would be critical for the housing markets worldwide. It also said that if discontent in Greece and Spain settles down and Germany and France implement growth promoting policies, it would still be possible for the index to start strengthening in the latter half of 2013.
Residential property prices in Dubai have dropped down to a point which was not seen even in early 2008, said Jones Lang LaSalle in April. A report of quarterly market overview states that compared to a peak in Q3 of 2008, villa sales have inched up by 3% during Q1 2012 in Dubai. Despite that increase, prices still remain 25% lower.
The report further disclosed that during the first three months of the year, apartment sales also started to stabilize but overall prices remained 34% down as compared to the Q3 2008.