Dubai's real estate market is set to lead global rankings in 2025, with property prices continuing to rise and surpassing growth in cities like London, Paris, and Madrid, according to a recent report.

Following a strong performance in 2024—where prime residential capital values increased by 6.8% and rental prices surged by 23.5%—Dubai's property sector is expected to maintain its momentum. Research from Savills predicts capital values will grow by up to 9.9% in 2025, driven by strong demand and a limited supply in prime locations.

Andrew Cummings, Head of Residential Agency at Savills Middle East, highlighted Dubai’s appeal to global investors, emphasizing that high-value transactions and new ultra-luxury developments are shaping the city’s real estate landscape.

Dubai’s rental market is also expected to continue its upward trajectory, with growth projections exceeding 10% in 2025. This stands in contrast to the global real estate market, where Savills forecasts an average price increase of only 1.6% across 30 major cities—down from 2.2% in 2024.

The surge in Dubai’s property values and rental prices is attributed to an increasing population and the influx of high-net-worth individuals (HNWIs) and family offices relocating to the UAE. The introduction of ultra-luxury projects is redefining the concept of ‘prime’ property, with Dubai’s prime real estate now valued at $930 per square foot (€9,200 per square metre). Additionally, many international buyers choose to rent before making a purchase, further contributing to rental market growth.