Dubai is on track to become the world’s leading luxury real estate market by 2025, as the city—alongside Seoul and Manila—has been a key driver of prime residential price growth across 44 global cities in 2024, according to recent property market forecasts.

In Knight Frank’s Global Prime Cities Index, Dubai ranked third, with its luxury real estate market surging by 16.9% in 2024. Seoul claimed the top spot with an impressive 18.4% growth, followed by Manila at 17.9%.

Meanwhile, Savills predicts that luxury property markets across 30 major financial hubs, including Dubai, will see an average growth of 1.6% in 2025, following a 2.2% increase in 2024. However, Dubai is projected to outpace global trends, with prices expected to climb by up to 10%.

“While global luxury property markets are expected to see moderate growth in 2025, Dubai’s rapid price appreciation sets it apart as a leader in this sector. Cities like Madrid, Barcelona, and Tokyo remain attractive to investors, but markets in mainland China and parts of Europe may face challenges,” the Savills report noted.

According to Knight Frank, luxury property prices across 44 global cities grew at an average annual rate of 3.2% in 2024, improving from previous quarters but still below the 20-year average of 5.3%.

• Seoul led the market with an 18.4% price surge, significantly up from 4.6% in Q3, despite ongoing political uncertainties.
• Tokyo’s prime real estate rebounded, recording a 10.6% increase in Q4, reversing earlier declines. The weaker yen and Japan’s highest interest rates in 17 years have drawn increased foreign investment.
• Luxury markets in North America, Europe, and Asia-Pacific are stabilizing, with 34 out of 44 cities recording positive annual growth and fewer than 20 experiencing declines.

Following a 6.4% price increase in 2024, Dubai is expected to lead the luxury market in 2025 with double-digit appreciation, reinforcing its status as a prime destination for high-end real estate investment.

Other cities projected to perform well include:

• Madrid and Barcelona – Anticipated price growth of up to 5.9%. In 2024, Madrid saw a 9.4% increase, while Barcelona followed with 8.6%.
• Asia-Pacific hubs – Tokyo, Seoul, and Bangkok are expected to maintain growth, with Tokyo’s prices rising 8.6% in 2024 and Bangkok’s increasing by 5.1%.
• Miami and New York – After declines in 2024, Miami is forecasted to recover with up to 3.9% growth, and New York’s luxury market could see a 1.9% rise.

In contrast, London, which saw flat growth in 2024, is projected to decline by up to 3.9% in 2025, making it one of the weakest performers alongside Hong Kong and Guangzhou.

With strong price appreciation, high rental yields, and investor-friendly policies, Dubai continues to attract global and high-net-worth investors. As the emirate outperforms many of the world’s leading cities, it cements its position as the most promising luxury residential market globally in 2025.