Dubai ranks among the world's leading residential markets in terms of capital growth

In the vibrant city of Dubai, both fixed and variable mortgage options are available for those looking to invest in the property market. This diverse financing environment caters to a wide range of potential buyers, reflecting the city's maturing real estate landscape.

According to Andrew Cummings, Head of Residential Agency at Savills Middle East, the prime values in Dubai are set to rise further. Savills forecasts a growth of 4% to 5.9% in the second half of 2025. This optimistic outlook is shared by other global cities, including London, New York, and Singapore, which have also shown strong growth in terms of capital value and rental value increases.

The Savills Global Cities Prime Residential Price Index H1 2025 report also highlights Berlin and Seoul as strong performers, each recording growth above 5%. Notably, Tokyo led the index with an impressive 8.8% rise in capital values.

Dubai's continued appeal to high-net-worth individuals and international buyers seeking long-term residence, coupled with high renewal rates on leases, has supported the city's capital value growth. Rising immigration flows and steady investor confidence, coupled with a limited supply in the luxury segment, have further fueled this growth.

In the prime segment, mortgaging is seen as a strategic choice, not a necessity. The UAE's mortgage conditions reflect a relatively mature financing environment, with mortgage loan terms typically ranging from 15 to 30 years. Minimum deposits are set at 15% for nationals and 20% for expatriates.

Across the 30 global cities tracked by Savills, prime capital values grew by 0.7% in H1 2025. However, Dubai recorded more than 5% capital value growth for prime residential properties in the first half of the year. Prime rental values in Dubai have also seen an increase, rising by 2.9% over the past six months and by 13.3% in the year to June 2025.

As the second half of the year approaches, Savills anticipates average capital value growth of 1.5% and rental growth of 1% across the 30 global cities tracked. Dubai, with its robust real estate market, is expected to remain one of the top performers for capital value growth.

In conclusion, the prime residential market in Dubai continues to show resilience and growth, making it an attractive destination for both local and international investors. The city's strategic location, steady economic growth, and favourable mortgage conditions contribute to its ongoing success in the global real estate market.

Dubai ranks among the world's leading residential markets in terms of capital growth