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Dubai: After being in the top echelons between 2012-14, Dubai slipped in the global city rankings for prime residential space in a new survey. The real estate consultancy places Dubai at the 96th spot in its Prime International Residential Index for 2015, after a 5.5 per cent decline over 2014. Abu Dhabi was ranked 75th, with values down by 2 per cent year-on-year. Riyadh was in 64th spot, though values remained unchanged.
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“The value of the world’s leading prime residential property markets rose on average by 1.8 per cent in 2015,” according to Knight Frank. “This was similar to the 2 per cent growth seen a year earlier. However, in 2015 over 66 per cent of the Prime International Residential Index 100 locations recorded flat or positive price growth, compared with 62 per cent in 2014.
“The gap between the strongest and weakest-performing luxury residential markets in the PIRI 100 has shrunk considerably from 97 percentage points during the tumultuous times of 2009, to 45 points in 2015.”
The index places Vancouver as the top performing market for premium residential property last year (up 24.5 per cent), and followed by Sydney (a gain of 14.8 per cent), Shanghai (14.1 per cent), Istanbul (13 per cent) and Munich 12 per cent).
London was placed 54th, while New York slipped into 39th. “The prime central London market remained in positive territory during the year (plus 1 per cent) despite a raft of new property taxes, many of which were aimed at foreign buyers, being introduced,” states the Knight Frank report.
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“The relaxation of cooling measures in some Chinese cities has had an immediate impact on performance, with luxury prices in Shanghai ending 2015 14 per cent higher. Given price falls in Singapore and Hong Kong, it will be interesting to see if policymakers in these markets follow suit and loosen their grip on cooling measures.