Dubai property growing fastest in world

Dubai remains the hottest property market in the world with prices rising at the fastest pace this year amongst the 41 global cities compared by UK-based Global Property Guide.

The organisation, which collates real estate data from across the world, revealed price jumped 6.48 per cent in third quarter compared to second quarter, while year-on-year increase was 21.37 per cent.

“The world housing markets recorded their strongest performance since the boom years of 2006/7. House prices are rising in many more countries than not, and the momentum trend is strongly upwards,” the organization said.

House prices had declined by 53 per cent from Q3 2008 to Q3 2011, due to the global financial and economic meltdown. Dubai started witnessing recovery from the second quarter of 2012, supported by the UAE’s robust economic growth.

“The strength of Dubai 's housing market has been bolstered by several other factors, including the availability of finance, the city's status as a safe haven, an exchange rate pegged to the US dollar, and improved consumer and investor confidence,” it had said.

Earlier this month, Knight Frank, a UK-based global consultancy, said house prices in Dubai rose 28.5 per cent in the first nine months of the year.

But to control speculators and price volatility in the market, Dubai has already raised property registration fee to 4 per cent from 2 per cent since October, while the UAE Central Bank has introduced new mortgage rules that ensure higher down payment for buyers/investors.

Using inflation-adjusted figures, the Global Property Guide's survey revealed prices rose in 28 of 41 housing markets. The more upbeat nominal figures, which are more familiar to the public, showed house prices rising in 32 countries and falling in only nine countries.

Taiwan took the second position on the list with prices soaring 14.98 per cent during the year to Q3 2013. Tallinn, Estonia, was placed third with price rise of 12.46 per cent.

Makati CBD, Philippines, saw prices surging 11.09 per cent during the year to Q3 2013, putting it at the fourth place followed by Germany where prices rose by 9.61 per cent.

The US recorded the world's sixth highest house price rise during the year to Q3 2013 with prices going up by 9.43 per cent. Hong Kong slipped to the seventh position from the third it occupied in the second quarter.

House prices slowed down to 7.76 per cent during the year to Q3 2013.

Japan, Beijing, China, and Sao Paulo, Brazil, were placed 8th, 9th and 10th on the list with annual increases of 7.63 per cent, 7.10 per cent and 6.98 per cent respectively.

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