Dubai the worst performing housing market in the world

Over the past six months, the desperately tumultuous housing markets of Greece, Spain and Portugal have all successfully surpassed Dubai’s rock bottom real estate sector, according to a survey published by property consultancy Knight Frank.

Although global house prices have increased by 2.8 per cent in the last six months, Dubai has seen a dismal decline of 10.1 per cent, compounded by last year’s drop of 6.1 per cent. This decrease is slightly below Jones Lang La Salle’s projected figure of 12 per cent, however it stills demonstrates the lingering frustration of the emirate’s property sector.

In contrast to other nascent markets where capital inflow from the U.S Federal Reserve has propelled investment in property, the decline is severe. Additionally, petrodollars in the Gulf region have failed to boost prices in the Dubai real-estate market.

Hong Kong was the best performing market of the last six months, with an increase of 10.1 per cent and an overwhelming rise 20.1 per cent in the last year. The combined markets of Shanghai and Beijing have also seen an impressive growth of 15.3 per cent in the year.

Source: Property Report