### Dubai’s Rising Star in Global Real Estate
Dubai has emerged as a powerhouse in the realm of global real estate, particularly when it comes to prime residential markets. According to Savills’ latest World Cities Prime Residential Index, the emirate has secured its place among the top three markets worldwide for capital value growth in the first half of the year. With property prices continuing their upward trajectory, driven by strong investor demand, Dubai is capturing the attention of both local and international buyers alike.
### Stellar Growth Figures
Between January and June, Dubai experienced a notable 5 percent rise in prime residential property prices. This surge is attributed to several interrelated factors: an influx of new residents due to rising immigration, unwavering investor confidence, and a restricted supply of luxury housing. These elements collectively create a dynamic marketplace that appeals to a diverse group of investors.
### Global Competition
Leading the index was Tokyo, which achieved an impressive 8.8 percent growth, followed closely by Berlin. This context highlights the competitive nature of global real estate markets. Yet, Andrew Cummings, head of residential agency at Savills Middle East, emphasizes what sets Dubai apart—its unique blend of global connectivity, investor-friendly policies, and ongoing infrastructure development. These factors continue to bolster Dubai’s standing as a premier destination for real estate investment.
### Encouraging Investment Environment
One of the key attractions for investors is the comparatively low transaction costs associated with property purchases in Dubai. Cummings notes that these favorable conditions, combined with the potential for further price appreciation, render Dubai’s property market especially appealing to international investors. Furthermore, the emirate has witnessed remarkable growth in recent years, largely fueled by government initiatives such as long-term residency visas, including the coveted 10-year golden visa.
### Initiatives to Foster Homeownership
A recent initiative introduced in July aims to make homeownership more accessible by assisting Emiratis and residents who do not currently hold freehold property. This inclusive approach is expected to further stimulate the market, allowing a broader segment of the population to explore real estate investments.
### Transaction Growth Statistics
The first half of 2025 has shown a dramatic increase in both the volume and value of real estate transactions in Dubai. Over 59,000 new investors entered the market, resulting in a staggering 26 percent increase in transactions. The total value of these transactions reached Dh431 billion, as reported by the Dubai Land Department. These statistics reflect not just growth, but a burgeoning interest in the emirate’s property landscape.
### Rental Market Performance
In addition to strong property sales, Dubai has outperformed other major global markets in terms of prime property sales and rental growth. While Savills tracked an average growth of 0.7 percent in prime capital values across 30 cities globally during the first six months, Dubai’s figures stand out even more impressive, reinforcing its position as a favorite among investors.
### Financing Options
The financing landscape in the UAE is quite favorable. Typical mortgage terms range from 15 to 30 years, with minimum deposits set at 15 percent for UAE nationals and 20 percent for expatriates. This mature financing environment facilitates access for both local and foreign buyers, further boosting investor confidence and participation in the market.
### Future Outlook
Looking ahead, Savills forecasts that prime residential prices in Dubai could rise another 4 to 5.9 percent in the second half of the year. This anticipated growth outpaces projections for most global markets, where average capital value growth is expected to hover around 1.5 percent during the same timeframe. The outlook for Dubai remains optimistic, making it a focal point for investors eager to harness the potential of a dynamic and thriving real estate market.
