DUBAI, May 26 (Reuters) - House prices in Dubai suffered the biggest fall among global property markets in the first quarter as a result of the economic crisis, a British real estate brokerage said in a study released on Tuesday. "On a quarterly basis, the most dramatic fall in prices were recorded by Dubai (40 percent) and Singapore (16.2 percent)," Knight Frank said in a note.
Prices in the seaside emirate, home to man-made palm-tree shaped islands, fell 32 percent year-on-year in the 12 months ending March 31, it said. Dubai had been the best performer quarter-on-quarter in the first quarter of 2008.
The emirate's once-booming property sector is suffering a sharp slowdown which has led to project cancellations worth billions of dollars and jobs being slashed.
The quarterly fall figure compared to a 41 percent decline reported recently by property consultant Colliers.
"Prices could reach a point where buyers and investors think the market is good value, but I think a lot of people will also look elsewhere in the region," Nick Barnes, the firm's head of international research, told Reuters.
Dubai was the second-worst performer year-on-year after Latvia, where prices fell 36 percent, figures showed.
Singapore was the third-worst performer, with prices falling by nearly 24 percent, followed by the U.S. and Britain where prices declined 16.9 percent and 16.5 percent respectively.
Israel's property market was the best-performing year-on-year, rising 10.9 percent, followed by the Czech Republic and Jersey, which gained 9.9 percent and 6.9 percent, the company said. (Reporting by Jason Benham; Editing by Thomas Atkins and Rupert Winchester)