Image: Dubai Media Office/ For illustrative purposes
Dubai ranked among the world’s top three prime residential markets for capital appreciation in H1 2025, as values climbed more than 5 per cent, outpacing the global average, real estate consultancy Savills said in its latest index.
The gains were supported by rising immigration flows, steady investor confidence and limited luxury supply. Savills forecast prime values in Dubai to rise a further 4 to 5.9 per cent in the second half of the year, keeping the city among the world’s strongest performers.
Prime rental values in Dubai rose 2.9 per cent in the past six months and 13.3 per cent in the year to June, reflecting moderating yet resilient growth after a strong run.
Renewal rates remain high as Dubai continues to attract high-net-worth individuals and international buyers seeking long-term residence.
Dubai’s prime residential market continues to draw interest
“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.”
Across the 30 global cities tracked by Savills, prime capital values grew by just 0.7 per cent in H1 2025, while rental values rose 2 per cent. Tokyo led with an 8.8 per cent rise in capital values, while Berlin and Seoul also posted growth above 5 per cent alongside Dubai.
Savills projects average capital value growth of 1.5 per cent and rental growth of 1 per cent across the global markets in H2 2025, with Dubai expected to remain one of the top performers.
The report also highlighted mortgage dynamics in the UAE, where loan terms typically span 15 to 30 years with fixed and variable options.
Minimum deposits are 15 per cent for nationals and 20 per cent for expatriates.
In the prime segment, mortgages are often used strategically for capital efficiency and liquidity management rather than affordability.
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