Luxury property prices in Dubai have fallen by 4.7 percent on average over the past year, according to new research by real estate consultancy Knight Frank.

Its Prime Global Cities Index for Q1 2019 report ranked Dubai 38th out of 45 luxury real estate markets analysed.

It said prime property prices in the emirate have fallen by 1.8 percent in the past three months.

On Tuesday, new data from Dubai Land Department showed a five-bedroom apartment in Omniyat’s One Palm was the most expensive property sold so far this year.

Property Finder revealed that the apartment, which spans 24,000 square feet, was sold off-plan for $20 million.

Emirates Hills, where the most expensive property was sold last year for $24.5 million, recorded the second highest property sale this year, with a six-bedroom villa spanning 17,800 sq ft, being sold for $17 million on the secondary market.

The Knight Frank index, which tracks the movement in luxury residential prices - top 5 percent of the housing market - across 45 cities globally, increased by 1.3 percent in the year to Q1, its lowest annual rate of growth since Q4 2009.

Knight Frank cited political and economic headwinds in Q1, the rising cost of finance, and more property market regulations for the price slowdown.

In the first quarter of 2019, the threat of a global trade war loomed, uncertainty surrounding Brexit peaked and the IMF projected that 70 percent of the world’s economies would see a slowdown in growth in 2019.

According to the report, European cities accounted for seven of the top ten rankings for annual growth, with Berlin, Frankfurt, Edinburgh and Paris driving price increases.

It added that Miami leads the four US cities tracked by the index.