Dubai Ranks Among Leading Global Destinations for Capital Growth in Real Estate Markets
In the dynamic world of real estate, Dubai continues to stand out as one of the strongest performing prime residential markets. According to Andrew Cummings, Head of Residential Agency at Savills Middle East, this trend is set to continue in the second half of the year.
Mortgage terms in the UAE offer a range of options, with loan lengths stretching from 15 to 30 years, and both fixed and variable options available. This reflects a mature financing environment in the region. However, in the prime segment, mortgaging is more of a strategic choice than a necessity.
The capital value growth in Dubai is supported by several factors. Rising immigration flows, steady investor confidence, and limited supply in the luxury segment are all contributing to this growth. In the first half of 2025, prime residential properties in Dubai saw capital value increases of more than 5%. This growth places Dubai alongside Berlin, Seoul, and Tokyo, which also saw significant growth.
Tokyo led the index with an impressive 8.8% rise in capital values, but Dubai's growth outpaced many other global markets. The city's prime rental values also increased substantially, with a 2.9% rise over the past six months and a 13.3% increase in the year to June 2025.
Looking ahead, Savills anticipates average capital value growth of 1.5% and rental growth of 1% across the 30 global cities they track in the second half of the year. However, Dubai is expected to outperform these averages, with a forecasted prime value increase of 4% to 5.9%.
It's worth noting that in the UAE, minimum deposits for mortgages are set at 15% for nationals and 20% for expatriates. Factors influencing prime mortgaging include capital efficiency, liquidity, risk management, and long-term financial structure.
In summary, Dubai's prime real estate market continues to thrive, offering attractive prospects for investors and homebuyers alike. As the city continues to attract immigrants and maintain investor confidence, its position as a top performer in the global real estate market is set to endure.
Read also:
- visionary women of WearCheck spearheading technological advancements and catalyzing transformations
- Recognition of Exceptional Patient Care: Top Staff Honored by Medical Center Board
- A continuous command instructing an entity to halts all actions, repeated numerous times.
- Oxidative Stress in Sperm Abnormalities: Impact of Reactive Oxygen Species (ROS) on Sperm Harm
