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Dubai’s prime residential capital values are forecast to grow by up to 9.9 per cent in 2025, the highest among 30 global cities tracked by Savills
Following a strong performance in 2024, Dubai’s prime residential market is expected to continue its upward trajectory in 2025, with capital values forecast to grow by up to 9.9 per cent, according to the latest research from global real estate consultancy Savills.
The Savills Prime Residential World Cities Index revealed that Dubai’s prime residential capital values rose by 6.8 per cent in 2024, cementing the emirate’s status as a global investment hub. In addition, Dubai saw a remarkable 23.5 per cent growth in rental prices last year, driven by continued demand for luxury living.
The growth is fueled by an increasing population and a steady influx of high-net-worth individuals and family offices into the UAE. Despite new supply entering the market, Dubai’s luxury segment continues to evolve, with several ultra-luxury projects redefining the market’s understanding of “prime.”
A strong year for Dubai’s prime residential property segment
In 2025, Savills projects Dubai to lead global prime residential price growth, with capital values expected to rise by 8 to 9.9 per cent, the highest among 30 global cities tracked in the index. The city is also predicted to experience the strongest rental growth, with a projected increase of more than 10 per cent.
Globally, Savills forecasts an average price growth of 1.6 per cent across the 30 cities monitored, a slight decline from the 2.2 per cent recorded in 2024. This indicates a more cautious outlook for global prime property markets.
“Despite recent economic turbulence, prime residential markets have shown remarkable resilience,” said Kelcie Sellers, associate director at Savills World Research. “With 2024 deemed the ‘year of elections,’ 2025 will be a period where new governments begin to implement changes that could affect prime residential markets across the globe.”
Andrew Cummings, head of Residential Agency at Savills Middle East, added, “Dubai’s prime residential sector continues to thrive, with demand outpacing supply in the city’s most sought-after communities. The strong rental performance and capital appreciation are making Dubai an increasingly attractive destination for global investors. We expect further momentum in 2025, with high-value transactions and new ultra-luxury developments reshaping the city’s real estate landscape.”
Highly attractive to investors
Dubai’s prime residential market remains highly attractive to investors and residents alike, bolstered by expanding job opportunities, major infrastructure projects, and government-led initiatives. International buyers are often opting to rent before purchasing, contributing to the surge in rental prices in 2024 and further establishing Dubai as a luxury living destination.
Looking forward, Cummings concluded, “Dubai’s property market is expected to maintain its upward momentum in 2025, surpassing global markets like London, Hong Kong and New York. The demand for branded residences, waterfront developments, and sustainable luxury homes positions the city as a leading global hub for prime residential investment.”
Savills World Cities Prime Residential Index: 2025 capital value growth Forecast versus 2024 growth
| City | 2025 Forecast | 2024 Capital Value Growth | Prime Capital Value (Dec 2024) (US) $ psf | Prime Capital Value (Dec 2024) (EUR) € psm |
|---|---|---|---|---|
| Dubai | +8% to 9.9% | 6.8% | $930 | €9,200 |
| Sydney | +4% to 5.9% | 3.9% | $1,950 | €19,200 |
| Madrid | +4% to 5.9% | 9.4% | $1,120 | €11,000 |
| Lisbon | +4% to 5.9% | 6.0% | $1,400 | €13,800 |
| Barcelona | +4% to 5.9% | 8.6% | $870 | €8,600 |
| Cape Town | +4% to 5.9% | 5.1% | $260 | €2,500 |
| Tokyo | +2% to 3.9% | 8.6% | $2,120 | €20,900 |
| Mumbai | +2% to 3.9% | 4.4% | $1,200 | €11,800 |
| Kuala Lumpur | +2% to 3.9% | 0.4% | $240 | €2,400 |
| Shanghai | +2% to 3.9% | -2.4% | $2,000 | €19,700 |
| Amsterdam | +2% to 3.9% | 7.4% | $1,030 | €10,200 |
| Rome | +2% to 3.9% | 3.2% | $1,450 | €14,300 |
| Miami | +2% to 3.9% | -1.2% | $1,490 | €14,600 |
| New York | >0% to 1.9% | -0.9% | $2,590 | €25,500 |
| Paris | >0% to 1.9% | 2.1% | $1,880 | €18,600 |
| Seoul | >0% to 1.9% | 6.9% | $1,860 | €18,300 |
| Beijing | >0% to 1.9% | -2.1% | $1,490 | €14,700 |
| Hangzhou | >0% to 1.9% | -1.4% | $1,210 | €11,900 |
| Athens | >0% to 1.9% | 4.4% | $1,180 | €11,600 |
| Los Angeles | >0% to 1.9% | -3.5% | $1,480 | €14,600 |
| Bangkok | >0% to 1.9% | 5.1% | $1,090 | €10,800 |
| Berlin | 0.0% | 0.5% | $1,150 | €11,400 |
| Geneva | 0.0% | 1.6% | $2,550 | €25,200 |
| Milan | 0.0% | 0.0% | $1,520 | €15,000 |
| Singapore | -1.9% to <0% | 1.1% | $1,810 | €17,900 |
| Shenzhen | -1.9% to <0% | -4.2% | $1,470 | €14,500 |
| San Francisco | -1.9% to <0% | 0.8% | $1,410 | €13,900 |
| London | -3.9% to -2% | 0.0% | $1,920 | €18,900 |
| Hong Kong | -3.9% to -2% | -2.4% | $3,860 | €38,000 |
| Guangzhou | -3.9% to -2% | -4.0% | $1,480 | €14,600 |
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