Dubai to See Highest Prime Residential Price Growth in 2025

Dubai is poised to lead global prime residential price growth in 2025, with capital values expected to rise by as much as 9.9%, according to Savills’ Prime Residential World Cities Index, which tracks 30 major global markets. Following a 6.8% increase in 2024, Dubai is set to outperform its counterparts as demand for high-end properties continues to surge.

The projected growth in Dubai's prime real estate market outpaces the global average, with capital values in major cities forecast to rise by only 1.6% in 2025. A combination of factors, including a rising population, an influx of high-net-worth individuals (HNWIs), and an increasing number of family offices establishing a presence in the UAE is driving the city’s luxury housing boom. The sustained demand for prime properties has resulted in a market where supply struggles to keep pace, particularly in sought-after high-end communities.

Rental prices in Dubai's prime segment are also expected to see growth, with rates projected to climb by over 10% in 2025. This follows a 23.5% increase in 2024. The influx of wealthy investors and end-users, coupled with limited availability in ultra-luxury developments, is reinforcing this trend.