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Dubai house prices rally amid global recovery

18 juni 2010

Dubai house prices rally amid global recovery

by Andy Sambidge

House prices in Dubai rose on average by 1.6 percent in the first quarter of 2010 compared to the previous quarter, Knight Frank said in its global index report on Thursday.

The latest study showed that the emirate's real estate sector, which has seen prices tumble more than 50 percent during the global economic downturn, seems to have turned a corner.

Knight Frank said that house prices in Dubai were 2.4 percent up on the figures for the thrid quarter of 2009 but were still 8.2 percent down on the year.

Dubai was placed 38th on the Global House Price Index which compares 47 property markets around the world.

That represents a big improvement on the index for the third quarter of 2009 which ranked Dubai as the worst performing market in the world.

Ukraine and the three Baltic states continue to occupy the bottom rankings with declines of more than 30 percent year-on-year.
 
The index also revealed that prices in Q1 2010 increased in 53 percent of the locations monitored, with the Asia Pacific region seeing the strongest growth with prices increasing, on average, by 17.8 percent.

Annual price inflation for all global housing markets moved into positive territory for the first time since Q4 2008, recording 1.6 percent growth in the year to March 2010, Knight Frank added.

The top performers remain the Asian economies of China, Hong Kong and Singapore, all recording annual growth in excess of 24 percent.
 
Liam Bailey, head of residential research, Knight Frank, said: “A recovery in the global housing market is undoubtedly under way, in Q1 2009 33 percent of countries recorded positive annual growth, in Q1 2010 this figure is closer to 53 percent but still some way off the figure of 90 percent recorded in Q1 2006.”