Dubai has once again emerged as one of the world’s strongest performing prime residential markets, according to Savills’ latest World Cities Prime Residential Index H1 2025.
The emirate recorded capital value increases of more than 5 per cent in the first half of 2025 for prime residential properties, driven by rising immigration flows, steady investor confidence, and limited supply in the luxury segment.
Looking ahead, Savills forecasts prime values in Dubai to rise by a further 4 to 5.9 per cent in the second half of the year, underscoring the city’s continued appeal to global investors.
Prime Dubai real estate
Prime rental values in Dubai also remained resilient, increasing by 2.9 per cent over the past six months and by 13.3 per cent in the year to June 2025.
While growth has moderated after a strong run in 2024, renewal rates on leases remain high, with the city continuing to attract high-net-worth individuals and international buyers seeking long-term residence.
Andrew Cummings, Head of Residential Agency, Savills Middle East, said: “Despite wider macroeconomic uncertainty, Dubai’s prime residential market continues to demonstrate stability bolstered by strong fundamentals.
“The city’s global connectivity, investor-friendly policies and ongoing infrastructure development continue to underpin its status as one of the world’s leading real estate markets.
“Lower costs associated with buying and selling property compared to global peers, and further headroom for price growth mean that Dubai’s appeal on an international scale is still very strong.”
Globally, Dubai outpaced most other markets in both capital value and rental growth. Across the 30 global cities tracked by Savills, prime capital values grew by just 0.7 per cent in H1 2025, while prime rental values rose by 2 per cent.
Tokyo led the index with an 8.8 per cent rise in capital values, fuelled by strong demand and constrained supply.
Berlin and Seoul also performed strongly, each recording growth above 5 per cent, alongside Dubai.
The report also highlighted mortgage trends across key markets. In the UAE, buyers typically access loan terms of 15 to 30 years, with both fixed and variable options available.
Minimum deposits are set at 15 per cent for nationals and 20 per cent for expatriates. These conditions reflect a mature financing environment that supports both domestic purchasers and international investors, contributing to the resilience of the prime residential sector.
In the luxury segment, mortgaging is often a strategic choice rather than a necessity, linked to capital efficiency, risk management, and long-term financial planning.
Looking to the second half of 2025, Savills expects average capital value growth of 1.5 per cent and rental growth of 1 per cent across the 30 global cities tracked. Dubai, however, is forecast to remain one of the top global performers, especially for capital value growth.
