Dubai has as soon as once more emerged as one of many world’s strongest performing prime residential markets, in response to Savills’ newest World Cities Prime Residential Index H1 2025.
The emirate recorded capital worth will increase of greater than 5 per cent within the first half of 2025 for prime residential properties, pushed by rising immigration flows, regular investor confidence, and restricted provide within the luxurious phase.
Trying forward, Savills forecasts prime values in Dubai to rise by an additional 4 to five.9 per cent within the second half of the 12 months, underscoring the town’s continued enchantment to international traders.
Prime Dubai actual property
Prime rental values in Dubai additionally remained resilient, rising by 2.9 per cent over the previous six months and by 13.3 per cent within the 12 months to June 2025.
Whereas progress has moderated after a robust run in 2024, renewal charges on leases stay excessive, with the town persevering with to draw high-net-worth people and worldwide patrons looking for long-term residence.
Andrew Cummings, Head of Residential Company, Savills Center East, stated: “Regardless of wider macroeconomic uncertainty, Dubai’s prime residential market continues to reveal stability bolstered by robust fundamentals.
“Town’s international connectivity, investor-friendly insurance policies and ongoing infrastructure growth proceed to underpin its standing as one of many world’s main actual property markets.
“Decrease prices related to shopping for and promoting property in comparison with international friends, and additional headroom for worth progress imply that Dubai’s enchantment on a global scale continues to be very robust.”
Globally, Dubai outpaced most different markets in each capital worth and rental progress. Throughout the 30 international cities tracked by Savills, prime capital values grew by simply 0.7 per cent in H1 2025, whereas prime rental values rose by 2 per cent.
Tokyo led the index with an 8.8 per cent rise in capital values, fuelled by robust demand and constrained provide.
Berlin and Seoul additionally carried out strongly, every recording progress above 5 per cent, alongside Dubai.
The report additionally highlighted mortgage tendencies throughout key markets. Within the UAE, patrons sometimes entry mortgage phrases of 15 to 30 years, with each mounted and variable choices accessible.
Minimal deposits are set at 15 per cent for nationals and 20 per cent for expatriates. These situations mirror a mature financing surroundings that helps each home purchasers and worldwide traders, contributing to the resilience of the prime residential sector.
Within the luxurious phase, mortgaging is commonly a strategic alternative fairly than a necessity, linked to capital effectivity, danger administration, and long-term monetary planning.
Seeking to the second half of 2025, Savills expects common capital worth progress of 1.5 per cent and rental progress of 1 per cent throughout the 30 international cities tracked. Dubai, nevertheless, is forecast to stay one of many prime international performers, particularly for capital worth progress.
