According to recent research, Dubai has solidified its standing as one of the best-performing premier residential markets globally, registering strong growth in capital value over the first half of 2025.

Capital prices for prime properties in the emirate increased by more than 5% in H1 2025. This increase was fueled by persistent immigration, strong investor optimism, and a limited supply of premium residences. Data shows this rise places it just below Berlin and Tokyo in global rankings.

Additional growth of 4% to 5.9% is anticipated in the second half of the year, reaffirming Dubai’s continued allure for international investors.

The prime segment’s rental values also held steady, rising by 2.9% over the previous six months and 13.3% annually until June 2025. High lease renewal rates and ongoing demand from high-net-worth individuals and foreign buyers seeking long-term residency highlight the market’s durability, even though growth has slowed compared to earlier years.

Despite broader macroeconomic headwinds, Dubai’s prime residential sector continues to show remarkable stability, underpinned by solid fundamentals. The city’s global connectivity, pro-investor policies, and ongoing infrastructure development reinforce its status as a leading international real estate hub. Lower transaction costs and room for further price appreciation continue to make Dubai highly attractive on the global stage.

Among 30 cities studied globally, Dubai surpassed most in both capital and rental growth. In H1 2025, rental values increased by 2% globally, while prime capital values increased by an average of 0.7%. With an 8.8% increase in capital values, Tokyo topped the index, followed by Berlin, Seoul, and Dubai, all of which saw increases above 5%.

The research also provides insight into mortgage patterns in key markets. Homebuyers in the UAE usually apply for loans with fixed or variable rate choices, and with terms ranging from 15 to 30 years. The UAE has a developed financial environment that encourages both domestic and foreign investment, with minimum down payments of 15% for UAE citizens and 20% for foreigners.

In the prime segment, capital efficiency, liquidity management, and long-term financial planning are key factors, making mortgages often smart financial decisions rather than necessities.

For the rest of 2025, average capital value growth is projected at 1.5% and rental growth at 1% in all cities studied. Dubai is expected to continue ranking highly, especially in terms of capital appreciation.