According to the latest research from Savills, 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%, following a strong performance in 2024, Invest-Gate reports.

Savills Prime Residential World Cities Index revealed that Dubai’s prime residential capital values rose by 6.8% in 2024, cementing the city’s status as a global investment hub. Additionally, Dubai experienced a remarkable 23.5% growth in rental prices last year, driven by ongoing demand for luxury living.

This 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.”

In 2025, Savills projects Dubai to lead global prime residential price growth, with capital values expected to rise by 8% to 9.9%, the highest among the 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%.

Globally, Savills forecasts an average price growth of 1.6% across the 30 cities monitored, a slight decline from the 2.2% 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 when 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.”