Dubai Among Top 3 Prime Residential Markets Globally for Capital Value Growth

Dubai has once again reinforced its reputation as one of the world’s leading luxury property destinations, securing a top-three position globally for prime residential capital value growth, according to the latest World Cities Prime Residential Index published by Savills, the international real estate services firm.

What Defines the “Prime” Segment?

Prime residential properties represent the top 5–10% of a market by value—the most desirable villas, houses, and apartments distinguished by their premium location, quality, and exclusivity. These homes are magnets for global investors and high-net-worth individuals seeking both long-term security and lifestyle appeal.

Global Market Context

Savills reports that, despite wider geopolitical and financial uncertainties, prime residential markets worldwide remained resilient in the first half of 2025, recording overall price growth of 0.7%. Although slower than the 2.2% growth in 2024, this performance reflects the enduring demand for luxury real estate as a safe asset class.

Dubai’s Strong Showing

In terms of capital value growth, Tokyo and Berlin led globally in H1 2025, with Dubai taking third place. The emirate recorded over 5% growth in prime property values in just six months-an impressive achievement underpinned by:

• Rising immigration flows

• Steady investor confidence

• Limited supply in the ultra-luxury segment

Looking ahead, Savills forecasts a further 4% to 5.9% increase in Dubai’s prime values for the second half of the year, underscoring its sustained investor appeal.

Rental Market Performance

Savills’ research also highlights Dubai’s resilience in the prime rental market:

• 2.9% increase in H1 2025

• 13.3% annual growth (June 2024 – June 2025)

Although moderating from earlier peaks, rental performance remains robust. Renewal rates on leases are notably high, highlighting Dubai’s attraction among high-net-worth individuals and international buyers seeking long-term residence and stability.

Key Drivers of Dubai’s Prime Market

Commenting on the findings, Andrew Cummings of Savills said:

“Despite wider macroeconomic uncertainty, Dubai’s prime residential market continues to demonstrate stability bolstered by strong fundamentals.”

The city’s growth is supported by:

• World-class global connectivity

• Investor-friendly policies

• Rapid population growth

• Ambitious infrastructure projects

These factors collectively cement Dubai’s status as a top global hub for prime residential investment.

Financing Environment in the UAE

Savills also points to the UAE’s mature financing landscape as a key enabler:

• Loan terms: 15–30 years (fixed and variable options available)

• Minimum deposits: 15% for nationals, 20% for expatriates

These conditions strike a balance between accessibility and prudence, ensuring both domestic buyers and international investors have confidence in the market’s stability.

Global Rental Growth Outlook

Across the 30 cities tracked by Savills, Tokyo, Los Angeles, Cape Town, Berlin, and Hong Kong led rental growth. For the remainder of 2025, average global rental growth is expected to reach around 1% : with Dubai anticipated to perform above this benchmark.