Its figures revealed that global house prices grew 3.1% in the third quarter down from 4.3% in Q2.
Nevertheless, this was substantially up on Q3 2009 when growth was -6.2%.
Knight Frank said the the weak performance owed to many countries tipping back into negative growth in Q3, including 14 European countries, after experiencing several quarters of rising house prices.
However, 67% of all countries saw positive annual growth, with 46% seeing house prices increase during Q3.
Liam Bailey, head of residential research, at Knight Frank, said: “Digging into the data we can see that there are still considerable issues playing out across the global markets.”
He added: “There is growing evidence that the global housing market recovery, which began in early 2009 following the desperate conditions in 2007 and 2008, may just be beginning to run out of steam. Nearly 30% of countries which had experienced strengthening conditions in 2010 saw quarterly price growth turn negative in Q3 2010.”
Countries that reported negative growth in Europe include Greece, Iceland, Netherlands, Norway, Portugal, Slovenia and the UK.
Outside of Europe, the list extended to China, Canada, Columbia, Dubai, New Zealand, South Africa and Taiwan.