Luxury residential prices in Dubai fell marginally by 0.8 percent in the year to the end of June, according to real estate consultancy Knight Frank.
Its half-year update of the Wealth Report, which analyses the movement of luxury property prices in 20 of the world’s key cities, showed that Dubai was one of four cities which registered a decline.
Other price drops were seen in London (-1.8 percent), Istanbul (-2.4 percent) and Vancouver (-6.2 percent).
This compared to Singapore which led the rankings with a 11.5 percent jump in prices, with Knight Frank saying the city has witnessed resurgent price growth due to rising foreign demand and high land bids by developers.
Prices in Tokyo rose 9.4 percent, with growth linked to economic sentiment, the city’s relative value compared to Hong Kong and Singapore, and investment ahead of the 2020 Olympic
Games.
Knight Frank's report also showed that domestic buyers in Paris - up 6 percent - are back, buoyed by an improved economy and cheap finance while Los Angeles led the rankings among US cities (7.8 percent).
Kate Everett-Allen, partner, international residential research at Knight Frank, said: “Property market regulations continue to determine the direction and volume of capital flows. Singapore, Hong Kong and Vancouver have all seen new macro-prudential measures introduced in the last six months, from vacancy taxes to stamp duty hikes and tighter lending rules.
"Singapore leads our annual rankings to Q2 2018 but if policymakers have their way, the recent increase in stamp duty for foreign buyers and developers introduced in July 2018 will result in more moderate price growth.
“Investors may rue the rise in regulations which, in many cases add to their bottom line; on the other hand, new regulations have heightened market transparency enabling some purchasers to move into emerging markets with greater confidence.”
