Dubai was among the top three prime residential markets in 1H 2025, stacking up alongside the likes of Berlin and Seoul, with capital value growth exceeding 5%, according to a Savills Research report (pdf). In comparison, global prime residential capital values grew 0.7%.

Meanwhile, prime residential rental values rose 2.9% in the six-month period, bringing the annual growth rate to 13.3% in the year to June 2025 — and surpassing global markets’ average rental growth rates of 2%.

The outlook for 2H: Dubai’s performance — supported by strong immigration flows and investor confidence — is projected to raise capital market values by an extra 4-5.9% in 2H 2025. “Lower costs associated with buying and selling property compared to global peers, and further headroom for price growth, mean that Dubai’s appeal on an international scale is still very strong,” The National quotes Andrew Cummings, head of residential agency at Savills Middle East, as saying.

REMEMBER- Despite a steady growth rate and a positive trajectory, Fitch previously offered a more cautious view, forecasting a 15% drop in Dubai’s property prices 2H 2025. This outlook is driven by concerns over potential oversupply in property projects, with an estimated 250k units expected for delivery in 2026.

In Savills’ view, new supply will continue to be limited in Dubai, Berlin, and Seoul, as heightened construction costs and interest rates “continue to suppress development pipelines,” the report said.

Tags: