Ireland is home to the fastest growing property market in the world, according to a global property index from estate agent Knight Frank. Thanks to an annual growth rate of 15 per cent in the 12 months to end-September 2014, Ireland has out-performed Turkey (+14%); Dubai (+12.5%); and the UK (+10.5%) to place first out of 54 countries.

As the report notes, it’s a remarkable turnaround for a property market which languished at the foot of the index table for most 2009 to 2012, even though property prices remain 39 per cent below their pre-crisis peak in 2007. The strong growth rate is a factor behind the Central Bank’s current proposals to restrict mortgage lending in an effort to restore stability and prevent another domestic property bubble.

Overall, the index is not so buoyant, having come close for the first time in two years to falling into negative territory.

“Muted growth in the third quarter comes on the back of jitters over the global economy, a lingering malaise in Europe and, in the US, a slower-thanexpectedhousing recovery,” the report says.

When looked at by world region, the Middle East recorded the strongest price growth (9.5%) in the year to September.

Spain and the UK also saw an upturn in the year to September 2014, but growth has started to slow in Dubai, with mainstream residential prices falling by 5.2 per cent in the three months to September – the emirate’s first quarterly decline in prices in the last four years.

China’s slowdown continued with 58 of the 70 cities tracked by the National Bureau of Statistics recording price falls in the year to September; two cities saw prices stay the same and ten recorded price increases. The city of Xiamen saw the strongest annual rise of 4.9 per cent.

In the US, the price of a single-family home increased by 4.8 per cent, down on last quarter’s figure of 6.2 per cent. Miami is the key city bucking the national trend, with prices rising by 10.3 per cent year-on-year.