Dubai records over 5% prime capital value growth in H1 2025, outpacing average global performance
Dubai has once again emerged as one of the world’s strongest performing prime residential markets in terms of capital value growth, according to Savills’ latest World Cities Prime Residential Index H1 2025.
The emirate recorded capital value increases of more than 5% in the first half of 2025 for prime residential properties, supported 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% in the second half of the year, underscoring the city’s continued appeal to global investors.
Prime rental values in Dubai also remained resilient, increasing by 2.9% over the past six months and by 13.3% in the year to June 2025, showing moderating yet promising growth, after a strong run in the first half. Renewal rates on leases remain high, with Dubai continuing 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,” 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.”
Dubai has outpaced other global markets in capital value and rental growth of prime property. Across the 30 global cities tracked by Savills in this index, prime capital values grew by 0.7% in H1 2025, while rental values outpaced sales growth with an increase of 2% over the same period.
Tokyo led the index with an 8.8% rise in capital values, fuelled by strong demand and constrained supply. Berlin and Seoul also performed strongly, each recording growth above 5%, alongside Dubai.
The report also highlights mortgage trends across key global 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% for nationals and 20% for expatriates. These conditions reflect a relatively mature financing environment that supports both domestic purchasers and international investors, further contributing to the resilience of the prime residential sector.
In the prime segment, mortgaging is typically a strategic choice rather than a necessity, and rarely about affordability. Considerations around capital efficiency, availability of liquidity for other investment avenues, risk management and long-term financial structure play a role.
Looking towards the second half of the year, Savills anticipates average capital value growth of 1.5% and rental growth of 1% across the 30 global cities tracked. Dubai is expected to remain one of the top performers, especially for capital value growth.
