Dubai’s prime properties are losing their value much more slowly than other segments of the city’s real estate market.
According to Knight Frank’s Prime Global Cities Index for Q2 2018, the average value of prime properties in Dubai fell just 0.8% year on year between June 2017 and 2018. Between March and June 2018, prices were down 0.6%.
Prime property is defined as the top 5% of the housing market in a city.
The small decline in prime values contrasts with big declines in the overall Dubai property market.
Asteco reported that average villa and apartment sale prices fell 4% percent between March and June 2018, and by 11% between June 2017 and 2018.
Forty-three cities were covered in the Q2 index and Dubai was one of 11 where prime values fell year on year. The greatest increases in prime values were seen in Guangzhou, Singapore and Madrid, which achieved double digit percentage growth over the 12 months. As a whole, however, the index recorded its weakest rate of annual growth since 2012 (2.6% overall).
“The introduction of new, and the strengthening of existing, property market regulations, along with the rising cost of finance and a degree of political uncertainty is resulting in more moderate price growth at the luxury end of the world’s top residential markets,” noted Kate Everett-Allen, the report’s author.