Abu Dhabi property prices fell by 8.3% and Dubai by 6.6% over the past 12 months, according to the latest Knight Frank Global Residential Cities Index.

Residential prices in Dubai and Abu Dhabi have now decreased more than any of the other 150 cities in the Index. Taimur Khan, associate partner at Knight Frank Middle East, told Arabian Business: “Over recent years the UAE’s property market has transitioned through a range of different stages. This trend has been underpinned by the speed of growth and expansion in its built environment, which has brought about challenges where property market cycles in Abu Dhabi and Dubai have certainly been more volatile in comparison to more established cities.

“Additionally, over this time period a combination of lower oil prices, global and local economic uncertainty, the stronger US dollar (which has fed through to the dollar-pegged dirham), the introduction of stringent mortgage regulations and high levels of new supply have helped provide a correction to the market.”