Dubai property prices fell by 12.2pc during the past year, the largest drop in the world, according to real estate consultancy Knight Frank.
The decline in the twelve months through June was the biggest in 56 mainstream residential markets and larger than the 12pc fall in real estate prices in Ukraine, which has been hit by almost two years of protests, a separatist insurgency, and political upheaval, Knight Frank said in a report. Prices in Dubai fell 2.8pc in the second quarter. Hong Kong was the best performing residential market, with prices up by 20.7pc.
Over the past decade, Dubai's property market has swung from boom to bust and back again.
Price gains in the two years through 2014 recouped much of the losses incurred in a 2008 collapse that pushed the city to the brink of bankruptcy before a recovery.
Then, prices started falling again this year amid oil's slump and weaker currencies in Russia and Europe. (Bloomberg)