According to a research released on Tuesday, Dubai has solidified its standing as one of the best-performing premier residential markets globally, registering strong growth in capital value over the first half of 2025.
Capital prices for prime properties in the emirate increased by more than 5% in H1 2025, according to Savills’ most recent World Cities Prime Residential Index. This increase was fueled by persistent immigration, strong investor optimism, and a limited supply of premium residences. According to data, this rise places it on the ranking only below Berlin and Tokyo.
Savills anticipates additional growth of 4% to 5.9% in the second half of the year, reaffirming Dubai’s continued allure for international investors.
The prime segment’s rental values also held steady, rising by 2.9% over the previous six months and 13.3% annually until June 2025. High lease renewal rates and ongoing demand from high-net-worth people and foreign buyers seeking long-term residency highlight the market’s durability, even though growth has slowed in comparison to earlier years.
“Despite broader macroeconomic headwinds, Dubai’s prime residential sector continues to show remarkable stability, underpinned by solid fundamentals,” said Andrew Cummings, Head of Residential Agency at Savills Middle East. “The city’s global connectivity, pro-investor policies, and ongoing infrastructure development reinforce its status as a leading international real estate hub. Lower transaction costs and room for further price appreciation continue to make Dubai highly attractive on the global stage.”
Among the 30 cities examined by Savills, Dubai surpassed most in both capital and rental growth. In H1 2025, rental values increased by 2% globally, while prime capital values increased by an average of 0.7%. With an 8.8% increase in capital values, Tokyo topped the index, followed by Berlin, Seoul, and Dubai, all of which saw increases above 5%.
Additionally, the research provides insight into mortgage patterns in important markets. Homebuyers in the UAE usually apply for loans with fixed and variable rate choices, and with terms ranging from 15 to 30 years. The UAE has a developed financial environment that encourages both domestic and foreign investment, with minimum down payments of 15% for UAE citizens and 20% for foreigners.
In the prime segment, capital efficiency, liquidity management, and long-term financial planning are key factors, making mortgages frequently smart financial decisions rather than necessities.
For the rest of 2025, Savills projects that average capital value growth will be 1.5% and rental growth will be 1% in all of the cities studied. It is anticipated that Dubai will continue to rank highly, especially in terms of capital appreciation.
