The UAE cities of Dubai and Abu Dhabi have both been named in the bottom 12 percent of real estate markets in relation to price growth over the past year.
Knight Frank’s Global Residential Cities Index for Q3, which covers a total of 150 cities, ranked Dubai 138th and Abu Dhabi 140th.
It said prices in Dubai have fallen by 1.8 percent on average in the 12 months to September while prices fell by 3.1 percent in the UAE capital in the same period.
Globally, Chinese city Xi’an showed with the highest rate of annual growth while Turin in Italy was the worst performer and the average rate of annual growth across the 150 cities is 4.5 percent.
Six Indian cities sit within the top 20 rankings while Budapest is the European city with the highest rate of annual growth.
Of the 150 cities tracked, 123 registered a rise in residential prices over the 12-month period with several first tier cities such as London, Melbourne, Shanghai and Kuala Lumpur seeing prices slip on an annual basis.
Knight Frank said a mix of economic stagnation, high rates of new supply and affordability constraints are contributing to softening prices in a number of these urban markets.