Prime properties in Dubai have already seen more than 5% growth in H1 2025
Last updated: August 28, 2025
Dubai’s luxury property market is heading for another bumper year, with world’s super-wealthy doing their part.
Dubai: Dubai’s luxury property market isn’t just about stunning views or glamorous addresses — it’s increasingly a smart investment for residents who want their money to work as hard as they do.
According to Savills’ World Cities Prime Residential Index H1 2025, Dubai’s prime residential sector recorded over 5% capital value growth in the first half of 2025, ranking it among the top three cities globally. Here’s why UAE residents should take notice:
1. Capital value growth
Prime properties in Dubai have already seen more than 5% growth in H1 2025, and Savills predicts another 4%–5.9% increase by year-end. With global peers like Berlin and Seoul also performing well, Dubai stands out for both stability and potential upside.
2. Rentals stay strong
Luxury homes and apartments in Dubai saw prime rental values rise 2.9% in six months, with a 13.3% increase year-to-date. High rental demand from expats and business professionals means steady income for owners.
3. Investor-friendly policies
Dubai makes buying and selling property simpler and cheaper than many international cities. Add no property tax, clear regulations, and long-term residency options for investors, and it’s easy to see why residents consider it a low-risk, high-reward market.
4. Limited supply boosts value
Luxury stock in Dubai is constrained, particularly in sought-after areas like Downtown, Palm Jumeirah, and Business Bay. Combined with rising interest from expatriates and foreign buyers, limited supply keeps prices and rents resilient.
5. Flexible financing options
UAE buyers can access 15–30 year mortgages with 15% deposits for nationals and 20% for expats, both fixed and variable rates. Many residents use prime property as a strategic investment, leveraging capital efficiently while benefiting from long-term value growth.
Bottom line: Whether you’re a first-time investor or a seasoned resident property owner, Dubai’s luxury market continues to combine growth potential, strong rental income, and investor-friendly conditions, making it one of the smartest wealth-building avenues in the UAE today.
