Global property values see 68% rise in Q3 2009
House prices in Dubai posted a moderate growth of 1.20 per cent in the third quarter of 2009 as property values in the global market rose 68 per cent, according to Knight Frank.
"Prices in Dubai have fallen significantly over the year but posted a small recovery of 1.2 per cent in the third quarter," the global property consultancy said in a report.
On Monday, AT Kearney said in a report titled "2010 Real Estate Global Opportunity Index" that the UAE has moved to 18th position from 31st in 2008 in terms of real estate development potential across emerging markets.
Liam Bailey, head of residential research, Knight Frank, said: "House prices are now rising in a clear majority of locations around the world with almost 70 per cent of the locations in our global house price index reporting growth in the third quarter of 2009. This compares with under 50 per cent during the second three months of the year.
European countries yet to record their first quarter of growth since the credit crunch include Spain, Denmark and Ireland where an oversupply of stock is holding back prices. This contrasts with the UK, which, despite being hit extremely hard initially, is staging a strong comeback as a shortage of houses for sale is contributing to rising values with demand outstripping supply.
Other locations where growth is accelerating include Australia, which was relatively unscathed by the credit crunch. Many Asian economies are also performing strongly with quarterly growth of six per cent in Hong Kong and 2.5 per cent in Mainland China, Knight Frank said.
"In some locations, particularly Singapore, the strength of the recovery is leading to talk of another bubble developing. However, it is worth noting that house prices in 60 per cent of the countries in the index are still lower than they were a year ago," the report said.
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