Dubai prime real estate outpaces global markets with over 5% growth in 2025

Dubai’s luxury property market continues to shine, with prices for prime homes climbing 5% in the first half of 2025, according to Savills. The global real estate advisor expects values to rise another 4% to 5.9% by year-end, making Dubai one of the world’s top-performing real estate hubs once again.

This growth is fueled by a mix of factors: steady immigration, strong investor confidence, and limited supply in the luxury segment. Together, they’ve kept demand high and positioned Dubai as a global hotspot for property investment.

Rental Market Remains Strong
Prime rentals also held firm, growing 2.9% in the past six months and an impressive 13.3% year-on-year. While growth has slowed slightly compared to 2024, renewals remain high as Dubai continues to attract wealthy individuals and international buyers looking for long-term homes.

Experts say Dubai’s global connectivity, investor-friendly policies, and ongoing infrastructure projects are key reasons the city continues to outperform other global markets. Add to that lower transaction costs compared to many other cities, and Dubai’s international appeal remains unmatched.

Global Performance
When compared with 30 other leading cities, Dubai stood out. Globally, prime property values grew by only 0.7% in H1 2025, while rentals increased by 2%. Cities like Tokyo (8.8%), Berlin, and Seoul joined Dubai in seeing growth above 5%, but Dubai’s mix of capital value and rental growth put it firmly among the strongest performers.

Financing Options
The report also noted mortgage trends in the UAE. Buyers can typically access 15–30 year loans with fixed or variable rates. Minimum down payments are 15% for UAE nationals and 20% for expatriates, providing a stable financing environment that supports both local buyers and international investors.