Dubai has reaffirmed its position as one of the world’s strongest-performing prime residential markets, ranking third globally for capital value growth, according to new research by Savills.
The firm’s World Cities Prime Residential Index tracks the performance of high-end villas, houses, and apartments within the top 5–10 percentile of value in each market. These properties are typically the most desirable, defined by premium location, superior quality, and exclusivity.
Globally, prime residential prices posted modest growth of 0.7% in the first half of 2025, down from 2.2% in 2024, as financial and geopolitical uncertainty weighed on sentiment. “The uncertainty from the financial and geopolitical environment has spilled over into the prime residential market in the first six months of the year,” said Andrew Cummings of Savills.
Despite these headwinds, Tokyo and Berlin led capital value growth in H1, followed closely by Dubai in third place. The emirate recorded prime property price increases exceeding 5% during the first six months of the year, driven by rising immigration, strong investor confidence, and limited supply in the luxury segment. Looking ahead, Savills forecasts an additional 4% to 5.9% growth in Dubai’s prime values for the remainder of 2025, underlining its sustained global investor appeal.
Prime rental values in Dubai also reflected resilience, rising 2.9% in H1 2025 and 13.3% year-on-year to June. While growth has moderated compared to earlier periods, lease renewal rates remain high as the city continues to attract high-net-worth individuals and international buyers seeking long-term residence.
“Despite wider macroeconomic uncertainty, Dubai’s prime residential market continues to demonstrate stability bolstered by strong fundamentals,” Cummings noted. “The city’s global connectivity, investor-friendly regulations, growing population, and infrastructure advancements reinforce its reputation as a leading real estate hub.”
Across the 30 global cities monitored by Savills, rental growth was strongest in Tokyo, Los Angeles, Cape Town, Berlin, and Hong Kong. For H2 2025, overall rental growth across these markets is expected to average 1%, with Dubai anticipated to outperform the global benchmark.
The report also highlights mortgage availability in key markets. In the UAE, homebuyers benefit from a mature financing environment with loan terms ranging from 15 to 30 years. Both fixed and variable rates are available, with minimum deposits set at 15% for UAE nationals and 20% for expatriates—further supporting domestic and international demand in the prime residential sector.
