Dubai’s prime residential sector will lead global property markets in 2025, with capital values projected to increase by up to 9.9 per cent, according to research from Savills.
The forecast follows Dubai’s performance in 2024, which saw prime residential capital values rise by 6.8 per cent and rental values surge by 23.5 per cent.
“Dubai’s prime residential sector continues to thrive, with demand outpacing supply in some of the city’s most sought-after communities. The strong rental market performance, coupled with capital appreciation, makes Dubai an increasingly attractive destination for global investors. We expect 2025 to bring further momentum, with high-value transactions and new ultra-luxury developments reshaping the city’s real estate landscape,” Andrew Cummings, Head of Residential Agency at Savills Middle East said.
Dubai property market sees record 23.5% rental growth, more expected
The growth stems from population increases and the influx of high net-worth individuals (HNWIs) and family offices to the UAE.
The market has witnessed the launch of ultra-luxury projects, which Savills reports are redefining the meaning of ‘prime’ property in Dubai.
The city’s rental market is set to maintain its momentum, with projections exceeding 10 per cent growth in 2025.
This contrasts with the global outlook, where Savills forecasts average price growth of 1.6 per cent across 30 tracked cities, down from 2.2 per cent in 2024.
“Despite the economic turbulence of recent years, prime residential markets have proved remarkably resilient. With 2024 dubbed the ‘year of elections’, 2025 looks to be a year in which these new governments start to make changes, from taxes to legislation to international affairs. Each change has the potential to affect prime residential property markets,” Kelcie Sellers, Associate Director at Savills World Research added.
The research indicates Dubai’s prime properties now command $930 per square foot (€9,200 per square metre). Many international buyers opt to rent before purchasing, contributing to the rental value increases in 2024.
“As we progress into 2025, Dubai’s property market is expected to maintain its upward trajectory, outpacing global markets such as London, Hong Kong, and New York. With sustained demand for branded residences, waterfront developments, and sustainable luxury homes, the city is poised to strengthen its position as a world-class hub for prime residential investment,” Cummings added.
Savills World Cities Prime Residential Index: 2025 prime capital value growth forecast
| CITY | 2025 FORECAST | CAPITAL VALUE GROWTH IN 2024 | PRIME CAPITAL VALUE DEC 2024 ($PSF) | PRIME CAPITAL VALUE DEC 2024 (€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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