Dubai among top 3 prime residential markets globally for capital value growth
Dubai has once again emerged as one of the world’s strongest performing prime residential markets in terms of capital value growth, according to new research from Savills.
In its ‘World Cities Prime Residential Index’, the real estate services firm reviews the developments and price movements of villas, houses and apartments categorised as ‘prime’ – defined as the top 5–10 percentile by value in a given market. Prime properties typically are the most desirable, with premium location, quality, and pricing.
According to the research, prime residential prices worldwide remained resilient in the first half of 2025, recording positive price growth of 0.7%. This is however notably down from the 2.2% growth booked in 2024. “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 from Savills.
In terms of overall capital value growth, Tokyo and Berlin stood out as the leaders in H1, with Dubai in third place. 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 Cummings. “The city’s global connectivity, investor-friendly policies, population growth and ongoing infrastructure development continue to underpin its status as one of the world’s leading real estate markets.”
Across the 30 cities tracked by Savills in the index, rental growth was highest in Tokyo, Los Angeles, Cape Town, Berlin, and Hong Kong.
Looking towards the second half of the year, Savills anticipates rental growth of 1% across the 30 global cities tracked. Dubai is expected to perform above-average in this domain.
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.
