Dubai: Demand for luxury property has declined to such an extent that Dubai no longer figures in the Top 10 rankings of cities worldwide. Prices of premium properties in the emirate actually dropped by a marginal 0.2 per cent in the three months between June to September, according to Knight Frank, the consultancy.

Dubai was placed 21st among cities worldwide on this count.

Over a six-month period, the increase comes to 0.9 per cent, and that over a 12-month term it comes to 2.6 per cent, well below the growth put in by premium properties in Jakarta and Los Angeles, which were placed first and second in the rankings with growth of 27.3 per cent and 16.3 per cent in the 12 months to September 2014, the Knight Frank report finds.

Dubai had figured consistently at the top of the rankings in the last two years, after investors went into a frenzy of buying activity for premium properties, especially completed ones or those close to completion during that period. That surge also helped some of the off-plan launches held last year to see substantial investor interest.

But in the three months between July to September, luxury real estate in most of the key global cities failed to attract sufficient investor interest. On average, they were up only by 0.2 per cent during this period. It could be that investors were taking a seasonal breather.