Savills report shows Dubai recording over 5% prime capital value growth in H1 2025
Published: Wed 27 Aug 2025,
Dubai has reaffirmed its position as one of the world’s top-performing prime residential markets, posting robust capital value growth in the first half of 2025, a report showed on Tuesday.
According to Savills’ latest World Cities Prime Residential Index, capital values for prime properties in the emirate rose by over 5 per cent during H1 2025, driven by sustained immigration, resilient investor sentiment, and a constrained supply of luxury homes. This growth puts it just below Tokyo and Berlin on the index, data showed.
Looking ahead, Savills projects further growth of 4 per cent to 5.9 per cent in the second half of the year, reinforcing Dubai’s enduring appeal to global investors.
Rental values in the prime segment also remained strong, increasing by 2.9 per cent over the past six months and 13.3 per cent year-on-year to June 2025. While growth has moderated compared to previous periods, high lease renewal rates and continued demand from high-net-worth individuals and international buyers seeking long-term residency underscore the market’s resilience.
“Despite broader macroeconomic headwinds, Dubai’s prime residential sector continues to show remarkable stability, underpinned by solid fundamentals,” said Andrew Cummings, Head of Residential Agency at Savills Middle East. “The city’s global connectivity, pro-investor policies, and ongoing infrastructure development reinforce its status as a leading international real estate hub. Lower transaction costs and room for further price appreciation continue to make Dubai highly attractive on the global stage.”
Among the 30 cities tracked by Savills, Dubai outpaced most in both capital and rental growth. Globally, prime capital values rose by an average of 0.7 per cent in H1 2025, while rental values saw a 2 per cent uptick. Tokyo led the index with an 8.8 per cent increase in capital values, followed by Berlin, Seoul, and Dubai — all recording growth above 5 per cent.
The report also sheds light on mortgage trends across key markets. In the UAE, homebuyers typically access loans with tenures ranging from 15 to 30 years, with both fixed and variable rate options. Minimum down payments stand at 15 per cent for UAE nationals and 20 per cent for expatriates, reflecting a mature financing landscape that supports both domestic and international investment.
In the prime segment, mortgaging is often a strategic financial decision rather than a necessity, with considerations around capital efficiency, liquidity management, and long-term financial planning playing a central role.
Looking ahead to the remainder of 2025, Savills anticipates average capital value growth of 1.5 per cent and rental growth of 1 per cent across the cities surveyed. Dubai is expected to remain among the top performers, particularly in capital appreciation.
