In the first half of 2025, Dubai secured a position among the top three global prime residential markets for capital growth, with property values increasing by more than 5 percent, surpassing worldwide averages, according to the latest index by real estate consultancy Savills.
The increase can be attributed to rising immigration, consistent investor trust, and a limited supply of luxury properties. Savills anticipates that prime property values in Dubai will further increase by 4 to 5.9 percent in the latter half of the year, maintaining the city’s status as one of the strongest performing markets globally.
In terms of rental properties, prime rental rates in Dubai rose by 2.9 percent over the last six months and by 13.3 percent compared to the previous year up to June, indicating steady yet vigorous growth after a robust period.
High renewal rates persist as Dubai continues to allure high-net-worth individuals and international buyers seeking long-term residency opportunities.
Dubai’s Prime Residential Market Remains Attractive
“Despite the broader macroeconomic uncertainties, Dubai’s prime residential sector continues to showcase stability, reinforced by strong core factors,” stated Andrew Cummings, head of Residential Agency at Savills Middle East. “The city’s global connectivity, favorable investor regulations, and ongoing infrastructure projects are essential in maintaining its reputation as one of the premier real estate markets worldwide.”
Among the 30 global cities monitored by Savills, prime property values experienced only a 0.7 percent increase during the first half of 2025, while rental prices rose by 2 percent. Tokyo reported the highest capital value growth at 8.8 percent, followed by Berlin and Seoul, which also experienced growth exceeding 5 percent along with Dubai.
Savills forecasts an average capital growth of 1.5 percent and a 1 percent rise in rental prices across global markets in the second half of 2025, with Dubai expected to continue performing strongly.
The report also outlined mortgage conditions in the UAE, where loan terms usually range from 15 to 30 years with both fixed and variable interest options available. The minimum deposit requirements are set at 15 percent for UAE nationals and 20 percent for expatriates.
In the prime residential market segment, mortgages are commonly utilized as strategic tools for capital efficiency and liquidity management rather than merely for affordability purposes.