Following a robust performance in 2024, Dubai’s prime residential capital values and rents are forecast to continue their upward trajectory in 2025, according to the latest research by Savills.
Savills Prime Residential World Cities Index reveals that Dubai prime residential capital values increased by 6.8% in 2024, further cementing the emirate’s status as a global investment hub. The city also witnessed a record-breaking 23.5% rental growth in 2024, driven by sustained demand for luxury living.
A growing population and an influx of high net-worth individuals and family offices into the UAE are fuelling strong demand for prime residential properties. While new supply is being introduced, Dubai’s evolving luxury segment is redefining the market’s understanding of ‘prime’, with several ultra-luxury projects launched in recent years.
Looking ahead, Dubai is expected to lead global prime residential price growth in 2025, with capital values forecast to grow by +8% to 9.9%, the highest among 30 global cities in Savills index. The city is also projected to lead the index for rental growth, with a projected increase of more than 10%.
Globally, capital values in prime markets are expected to remain positive 2025, with Savills forecasting an average price growth of 1.6% across the 30 cities tracked. This marks a slight decline from the 2.2% growth recorded in 2024, reflecting a more measured outlook for global property markets.
“Despite the economic turbulence of recent years, prime residential markets have proved remarkably resilient,” said Kelcie Sellers, associate director, Savills World Research. “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.”
Andrew Cummings, Head of Residential Agency at Savills Middle East, commented: “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.”
Despite broader global economic fluctuations, Dubai’s prime residential market remains resilient and highly attractive investors and residents alike. Many international buyers opt to rent before purchasing, contributing to the spike in rental values in 2024 and reinforcing the city’s appeal as a luxury living destination. Investors and end-users continue to be drawn to Dubai’s dynamic property market, underpinned by expanding business and job opportunities, major infrastructure developments, and government-led initiatives that enhance Dubai’s appeal as a long-term investment destination.
Cummings concluded, “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.”
Savills World Cities Prime Residential Index: 2025 prime capital value growth forecast vs capital growth value in 2024
| City | 2025 Forecast | Capital value growth in 2024 | Prime capital value Dec 2024 (US$ 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 |
