Post by: Bandan Preet
Dubai is expected to be the world’s top city for prime residential property growth in 2025, with prices forecasted to rise by as much as 9.9%, according to global consultancy firm Savills. Last year, Dubai saw a capital value increase of 6.8%, and experts believe the trend will continue.
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Among 30 major cities worldwide, Dubai is predicted to see the highest growth in property prices, as reported in the Savills Prime Residential World Cities Index. On a global scale, property prices in luxury housing markets are expected to grow by an average of 1.6% in 2025, showing a steady but slower increase compared to Dubai.
One of the key reasons for this strong growth is the rising population and the increasing number of wealthy individuals and family offices moving to the UAE. These high-net-worth individuals (HNWIs) are actively investing in luxury properties, driving up demand for prime real estate.
Dubai is also set to lead in rental price growth, with rents expected to rise by more than 10% in 2025. This follows an already significant increase of 23.5% in 2024, as more people seek high-end living spaces.
According to Andrew Cummings, Head of Residential Agency at Savills Middle East, the demand for prime homes is higher than the available supply in some of Dubai’s most desirable neighborhoods. He believes that 2025 will bring even more activity in the luxury real estate market, with high-value property deals and new ultra-luxury developments shaping the city’s skyline.
With strong demand and limited supply, Dubai’s prime residential market continues to be one of the most attractive real estate sectors in the world.
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