Dubai is biggest housing slump loser

According to figures published today by estate agent Knight Frank Dubai, is now the scene of the world's biggest property slump. House prices in the sheikdom have dropped by an enormous 40% in the first three months of 2009, outpacing falls anywhere else in the world.

Singapore saw the second biggest fall, with property prices down 16.2% in the quarter. However bucking the trend were Finland, where house prices rose 4% over the three months, and Jersey, where prices surged by 5.6%.

Dubai "is in a mess," said Nick Barnes, head of international residential research at Knight Frank, adding "The inescapable trend is that the worst and most widespread economic recession since the 1930s continues to batter housing markets across the globe. Rising unemployment and concern among those still in jobs, added to constrained credit conditions, means that buyer demand for housing remains suppressed and confidence is low in most markets, which is inevitably having a negative impact on house prices."

Click here to see the full country listings from Knight Frank