Dubai has maintained its position as one of the world’s strongest-performing prime residential markets in the first half of 2025, according to Savills’ latest World Cities Prime Residential Index.
Capital values see steady rise
Prime property capital values in Dubai rose by over 5% during the first six months of the year. The growth is driven by consistent demand from international buyers, increased immigration, and limited supply in the luxury segment. Savills expects further growth of between 4% and 5.9% in the second half of the year.
“Despite wider macroeconomic uncertainty, Dubai’s prime residential market continues to demonstrate stability bolstered by strong fundamentals,” said Andrew Cummings, Head of Residential Agency, Savills Middle East.
“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.”
Rental growth remains firm
Rental values in Dubai’s prime residential segment also increased by 2.9% in the past six months and 13.3% year-on-year as of June 2025. Renewal rates remain high, supported by a steady inflow of high-net-worth individuals and long-term foreign residents.
Global comparison and rankings
Among 30 global cities tracked, average capital value growth was just 0.7%, making Dubai one of the top performers. Tokyo led the index with an 8.8% rise, followed by strong performances in Berlin and Seoul, each exceeding 5%.
The report also outlines current mortgage trends in the UAE, where loan terms range from 15 to 30 years. Minimum deposit requirements stand at 15% for UAE nationals and 20% for expatriates. In the prime market, mortgages are often used as a strategic tool rather than a necessity, focusing on capital efficiency and long-term financial planning.
Globally, Savills projects average capital value growth of 1.5% and rental growth of 1% across the tracked cities for the remainder of 2025. Dubai is expected to remain one of the leading markets, particularly in capital value growth.
tanvir@dubainewsweek.com
