Investors 'benefiting' from house price fall

Annual house price growth around the world slowed to 3.8 per cent during the third quarter of 2008, Knight Frank's latest Global House Price Index has revealed.

The figure has dropped from 4.8 per cent in the second quarter of this year, prompting head of international research at Knight Frank Nicholas Barnes to state that "no part of the world is likely to escape the credit crunch".

He noted that one area which seems to be "bucking the trend" is Dubai, however he explained that this may be due to the fact that figures from the third quarter were not available at the time of the report being compiled.

And Mr Barnes noted that the current market conditions may be beneficial for those looking to buy property overseas.

"It means investors who are in a position to buy are now sensing that some markets are offering relative value compared to pre-credit crunch conditions," he remarked.

Reuters recently stated that Dubai is seeing a fall in property prices, with many property owners in the emirate looking to sell their assets.

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