Dubai remains among the top 20 most dynamic cities in the world, although its ranking has fallen on the annual index released by real estate consultant JLL.
The emirate, which was ranked as the third most dynamic city in the world in last year’s City Momentum Index, fell to the 13th spot this year.
Craig Plumb, head of Research, JLL MENA, said: “Dubai remains in the top 20 global cities in terms of dynamism and pace of change, although its rank has dropped as growth in residential real estate prices moderates to more sustainable levels.”
Property prices in Dubai are expected to remain flat or fall by up to 10 per cent this year, following a 56 per cent increase in rates over the two years to June 2014, JLL revealed in a recent report.
According to the Dubai Land Department, the number of residential transactions fell 30 per cent last year, with values down 14 per cent.
However, the report added: “Momentum is expected to continue with activity bolstered by major project spending relating to Dubai hosting the World Expo 2020.”
Globally, London retained the top spot on the index, which ranks 120 cities on real estate and socio-economic short-term and longer-term factors.
San Jose, Beijing, Shenzhen and Shanghai made up the top five, which also featured six new cities in the top 20 including Ho Chi Minh City at the sixth spot, Sydney at 11, Bangalore at 12, Dublin (14), Nairobi (15), Melbourne (16) and Nanjing (20).
“While six new cities entered the 2015 CMI, established tech and creative hubs, such as Austin, Los Angeles and Seattle, dropped to just outside the top 20. Hong Kong and Tokyo fell outside this year’s top 20 due to a temporary loss of impetus, but nonetheless have strong long-term fundamentals,” the report said.
“For the first time, cities in India and Sub-Saharan Africa were represented in the CMI due to the robust demand for office space from technology companies and MNC expansion,” it added.
Dubai was the only Middle Eastern city to feature on the index.