Dubai, August 2025 — In the dynamic world of luxury real estate, Dubai has once again secured its place among the global frontrunners. According to Savills’ latest World Cities Prime Residential Index, the emirate posted over 5% capital value growth for prime residential properties in H1 2025, placing it just behind Tokyo and Berlin in global rankings

Leading the Global Capital Appreciation Charge

While prime capital values grew by an average of just 0.7% across the 30 global cities tracked by Savills during H1 2025, Dubai soared above 5%, outperforming the majority of its peers Tokyo led the pack with an impressive 8.8% increase, followed by Berlin, with Dubai claiming a strong third. This performance comes amid sustained investor confidence, robust immigration trends, and a tight supply of luxury homes

Savills also forecasts that this momentum will continue into the latter half of 2025, projecting capital value growth in Dubai of 4% to 5.9%, further reinforcing its appeal to international investors .

Strong Rental Market Complements Appreciation

Dubai’s capital gains are backed by a resilient rental market. Rental values in the prime segment rose 2.9% over the last six months, and a remarkable 13.3% year-on-year as of mid-2025 . Lease renewal rates remain high—a clear indicator of sustained demand from high-net-worth individuals and global buyers eyeing long-term residency

What’s Driving Dubai’s Real Estate Renaissance?

Several key factors underpin Dubai’s standout real estate performance:

• Investor-Friendly Environment: Competitive transaction costs, streamlined processes, and attractive visa programs—including the Golden Visa—have solidified the emirate’s allure for international buyers
• Robust Connectivity & Infrastructure: Dubai’s world-class airport, ongoing infrastructure development, and strategic global positioning continue to enhance its appeal as a global lifestyle and investment hub
• Tight Supply in Luxury Segment: Despite booming demand, supply remains constrained, especially in ultra-prime neighborhoods, fueling upward price pressures

2024: A Stellar Prelude to 2025’s Surge

The recent performance continues a streak of robust growth. In 2024, prime residential capital values soared 6.8%, while rental values recorded a record 23.5% increase, emphasizing the strength of both sales and leasing markets

Dubai’s dominance was further acknowledged by analysts who projected the emirate would lead global prime residential price growth in 2025, with capital values expected to rise between 8% and 9.9%—the highest forecast among the 30 cities tracked

What the Numbers Say

Let’s break it down in table form:

Metric	Performance
H1 2025 Prime Capital Value Growth	Over 5% (3rd globally, after Tokyo & Berlin)
H1 2025 Prime Rental Value Growth	+2.9% (6-month), +13.3% YOY
Forecast H2 2025 Capital Growth	+4% to +5.9%
Full-Year 2024 Capital and Rental Growth	6.8% and 23.5%, respectively
Forecast Full-Year 2025 Capital Growth	+8% to +9.9% (projected leader)

Conclusion: Why Dubai Stands Tall

Dubai’s rise to the top echelons of the global luxury property market isn’t an accident—it’s the result of calculated policy choices, attractive living conditions, and solid investment fundamentals. As of mid-2025, the emirate continues to outperform many traditional powerhouses in both capital appreciation and rental performance