Dubai’s prime residential values and rents are set to continue their upward trajectory in 2025, following a strong performance in 2024, according to the latest Savills research. Dubai’s prime residential values are set to rise by 6.8% in 2024, reinforcing the emirate’s position as a global investment hub, according to Savills’ Global Cities Index. The city also saw record rent growth of 23.5% in 2024, driven by sustained demand for luxury living.
A growing population and an influx of high-net-worth individuals and family offices into the UAE are fuelling strong demand for prime residential properties. As new projects are launched, Dubai’s evolving prime real estate sector is redefining the concept of ‘luxury’ in the market, with a number of ultra-luxury projects launched in recent years.
Leading the way
Looking ahead, Dubai is expected to maintain its lead in global luxury home price growth in 2025, with capital values growing by 8% to 9.9%, the highest among the 30 global cities in the Savills Index. The city is also expected to rank highest in rental growth, with a projected increase of over 10%. Globally, capital values in key markets are likely to remain positive through to 2025, with Savills forecasting an average price growth of 1.6% across the 30 cities monitored in this report. This is a slight decrease from the 2.2% growth recorded in 2024, reflecting a more conservative outlook for global property markets.
A Year of Change
“Despite the economic turmoil of recent years, the prime residential market has proven remarkably resilient. With 2024 being billed as an ‘election year’, 2025 looks set to be the year when these new governments begin to make changes, from taxation to legislation to international affairs, with every change likely to have an impact on the prime residential market,” said Kelsey Sellers, Associate Director, Savills World Research.
“Dubai’s prime residential sector continues to thrive, with demand outstripping supply in some of the city’s most sought-after areas. The strong performance of the rental market, coupled with capital appreciation, is making Dubai an increasingly attractive destination for global investors. We expect 2025 to see further momentum, with high-value transactions and new ultra-luxury developments set to reshape the city’s real estate landscape,” said Andrew Cummings, Head of Residential Property, Savills Middle East.
Resilience and Attractiveness
Dubai’s luxury residential market remains resilient and highly attractive to investors and residents alike, despite the broader global economic volatility. Many international buyers are choosing to rent before buying, which has contributed to higher rental values in 2024, enhancing the city’s appeal as a luxury living destination. Investors and end-users continue to be attracted to Dubai’s dynamic real estate market, supported by expanding employment and business opportunities, as well as major infrastructure developments and government initiatives that enhance Dubai’s appeal as a long-term investment destination.
“As we enter 2025, we expect Dubai’s real estate market to maintain its upward trajectory, outpacing a number of other global markets, such as London, Hong Kong and New York. With continued demand for branded residences, waterfront developments and sustainable luxury homes, the city is well-positioned to further cement its position as a global hub for premium residential investment,” Cummings concluded. Savills Global Luxury Cities Index: “Prime Capital Value Growth Forecast 2025 vs. 2024.”