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

Dubai has solidified its status as a global leader in real estate, officially ranking in the top three of the prime residential markets worldwide for capital value growth in the first half of 2025. The updated World Cities Prime Residential Index, by Savills, indicates the emirate achieved upward growth of more than 5% in prime residential prices, well above the average global growth of only 0.7%.

This kind of performance captures how Dubai is characterized by strong investor sentiment, growing immigration, and limited luxury supply, which persists in attracting global investors and international buyers from anywhere in the world. Meanwhile, government incentives, namely long-term visas, tax-friendly conditions, and a value in the ever-growing infrastructure provided by the government, mean Dubai can still be favoured by people in search of high-quality living and long-term property investing.

Dubai Prime Residential Market – H1 2025 Overview

Dubai’s Global Ranking in Prime Residential Markets

In the first half of 2025, Dubai was ranked among the top three prime residential markets globally in terms of growth capital value. The rank is sourced by Savills’ World Cities Prime Residential Index, which measures price performance across 30 of the world’s leading cities.

Tokyo topped the Index with a remarkable 8.8% increase in values in prime properties, followed by Berlin, and Dubai ranked third with growth in prime residential capital values of more than 5%. This is an impressive performance and compares favourably against a global average growth of only 0.7% and shows the importance of Dubai being relatively unaffected and resilient to a challenging international environment.

Dubai’s achievement is especially notable and demonstrates its comparative outperformance against many more mature markets, which either had slight increases or minor declines in value. With a combination of international connectivity, a robust demand from investors, and limited luxury supply, Dubai is a market that has demonstrated it has the capacity for continued performance even through wider economic uncertainty.

Growth Capital Value in Dubai

Dubai’s prime residential market achieved a growth capital value of greater than 5% in the first half of 2025, outperforming the global averages. This performance is due to strong fundamentals that include high levels of immigration contributing to high levels of confidence among buyers and investors, and challenges on the supply side regarding many luxury developments in the pipeline.

For the second half of the year, Savills expects that prime values will continue to rise by a further 4% to 5.9%. The momentum shown here is indicative of a Dubai story that keeps resilience while tempting international buyers, whilst many global property markets show minimal growth at best.

The consistent levels of appreciation across the year’s first and second half also illustrate the foundations for sustained growth in the long term. Many of the more mature global hubs struggle to maintain this pace, whereas Dubai offers stability and opportunity. To global investors, the Emirates is not just about short-term profits; it offers long-term value. There are very few better places to invest. Dubai represents ‘dead-certain’ value in one of the most active real estate markets in the world.

Drivers Behind Dubai’s Property Boom

1. Immigration and Population Growth

The increasing immigration flows to Dubai are a key driver of the property boom. In the first half of 2025 alone, more than 59,000 new investors came to the emirate’s real estate market. Along with continued inflows from residents and entrepreneurs, the continued demand for prime housing has driven capital values upwards.

2. Investor-Friendly Government Policies

The UAE’s proactive policy framework is attracting global investors. Long-stay options such as the 10-year Golden Visa, as well as new permit options for retirees and remote workers, allow foreigners to connect and settle down easily. These reforms enable Dubai to be one of the most accessible and investor-friendly markets in the world.

3. Limited Luxury Supply

Due to the demand and limited supply coinciding, the luxury segment is active. Recent launches in prime locations are taken up quickly, resulting in buyer competition. This supply and demand imbalance boosts capital and rental growth, reinforcing Dubai’s place amongst the elite showcases globally.

4. Connectivity and Infrastructure

Dubai has world-class infrastructure and global connectivity to facilitate the presence of international buyers. With sophisticated systems of transport and the development of an advanced, integrated city, Dubai has a lifestyle and convenience that rivals some of the best capitals in the world, for much lower transaction costs.

5. Comparison with others

While there are only a select number of comparable markets that influence the performance of Dubai, globally, Tokyo leads the World Cities Prime Residential Index with capital value growth of 8.8% followed by Berlin in second and Dubai third, with overall capital value growth of above 5%.

• Dubai: Prima locations include Palm Jumeirah, Emirates Hills, and Downtown Dubai, as this is where wealthy buyers are concentrated and seeking an element of privacy and lifestyle.
• Tokyo: Prime property markets are in areas such as Minato, Shibuya, and Aoyama, which benefit from limited land and local domestic demand.
• Berlin: Prime property markets like Mitte, Charlottenburg, and Prenzlauer Berg also offer exceptional prime property. Areas like these combine character with luxury new development.

By achieving comparable performance to Tokyo and Berlin, two of the more mature global property markets, it can be seen that Dubai is competitive in its luxury market and is attracting an assortment of global buyers.

Prime Rental Values in Dubai

Dubai’s rental sector continues to reflect the underlying strength of its sales market. Low supply and high demand for prime residential accommodation in Dubai continued to drive rental growth, with prime rental values in Dubai climbing by 2.9% in the first half of 2025 and increasing 13.3% year-on-year.

With rental prices continuing to rise, tenants continue to be willing to extend leases instead of moving elsewhere, which highlights the strength in the luxury residential rental market, as there is limited luxury stock to move to and strong demand from HNW individuals. This price stability for international buyers demonstrates that Dubai is approaching a regulated and reliable property market, almost ensuring long-term buyer occupancy.

In comparison to a global survey of 30 cities tracked by Savills, Dubai has outperformed many established markets, including Tokyo, Berlin, and Los Angeles, which are among the highest rental growth markets in the world. The ability for Dubai to show consistent returns, even given the recent moderation of rental growth, establishes Dubai as a resilient place to invest in property.

Global Investors’ Perspective

Dubai is one of the few cities in the world where global investors can expect to find a combination of stability, growth opportunities, and accessibility. One of the most powerful signals for investors is the mature lending environment. Buyers in the UAE have the option to take out mortgage financing for 15 to 30 years, with fixed and variable options available to them.

The minimum deposit is set at 15% for nationals and 20% for expatriates! For prime residential buyers, mortgages are not often relied upon, but used to manage capital and liquidity—demonstrating the enabling product the market provides for sophisticated investors. The city’s investor-friendly policies create an additional layer of attraction. The Golden Visa program, residency options for retirees, and special permits for remote workers create prospects for long-term security for international buyers.

Dubai Luxury Market vs Global Trends

The luxury residential property market in Dubai continues to outperform many established global hubs. In the first half of 2025, prime residential markets globally, on average, recorded an increase of only + 0.7%, whereas Dubai managed to achieve more than 5% growth in capital value, highlighting the market’s strength amidst uncertainty with global financial and geopolitical markets.

In contrast, several mature cities, primarily in Europe, saw only small increases – or in some cases small declines – within their luxury segments. Tokyo and Berlin may have had the strongest performance globally, but most international markets lagged, with growth rates of around 1% or under 1%. The trend highlights the difference in fundamentals in Dubai, which remains stronger and more desirable than the majority of international peers.

Snapshot: Global Prime Residential Growth (H1 2025)

• Tokyo: 8.8%
• Berlin: 5%+
• Dubai: 5%+
• Global Average: 0.7%

Dubai’s advantages are the mixture of top-notch public infrastructure, pro-growth policies favoring investors, and relatively lower transaction costs. In turn, global investors may enjoy higher returns and easier market entry than in many international hotspots. In contrast to the regulated rental marketplace in Berlin or the high-cost barriers in Tokyo, Dubai offers a combination of affordability, liquidity, and continuing appreciation.

Outlook for H2 2025 and Beyond

Dubai’s prime residential market has a very strong outlook. Savills states growth capital values are to increase 4% to 5.9% in the second half of 2025. As such, Dubai’s prime residential property market will continue to be one of the best in the world, and can sustain momentum as global growth slows.

While rental values in Dubai are also expected to remain stable, and IHS Markit forecasts moderate increases above the global average (which forecasts rental increases of only 1% across the 30 cities in the index), investors benefit from a combination of capital appreciation and rental income. Overall, Dubai has emerged as one of the best markets to generate consistent and low-risk returns.

Eastern Housing UAE: Comprehensive Real Estate Services

Eastern Housing UAE has gained a good reputation in the region’s real estate market, covering a comprehensive range of services to buyers and investors, and tenants. Property sales are one of the core elements, where buyers may purchase off-plan or already built properties.

Buyers can browse many units for sale, whether it’s a residential apartment, villa, or townhouse, located in all the key locations throughout Dubai. Off-plan projects also bring our investors many positive payment plans. Besides selling properties, property rental services are also a very large portion of their business.

Conclusion

Dubai ranks in the top 3 prime residential markets, highlighting rental appreciation and capital value growth, and this is further supported by a net positive migration inflow, investor confidence, plus limited luxury supply, making it a prime location for both local and global investors.

Having an active rental value market in Dubai, tenants and residents can find properties to move into as a host of ready-to-move and move-in projects like Eastern Housing UAE are also available, and besides this, new developments and expanded cities are also meeting families, working professionals, and investors.