House prices in Dubai plummeted 47% in the second quarter from a year earlier, the steepest drop of any market, according to Knight Frank, as speculators left the Persian Gulf business hub.

On a quarterly basis, prices in the sheikhdom fell 7.5%, less than the 41% decline three months earlier, the London-based property broker said in an e-mailed statement today. Dubai’s annual drop accelerated from a 32% fall in the first quarter.