Dubai’s prime residential market forecasts a +4% to 5.9% growth in H2 2025

Dubai’s population has just crossed 4 million and if you’ve been stuck in traffic lately, you don’t need a research paper to tell you the city is growing fast. The difference is that this surge isn’t unchecked; new roads, infrastructure and master planning are working hard to keep pace with the momentum.

Against this backdrop of growth, Dubai’s prime residential market, defined by Savills as the top 5% to 10% of property prices across each city, continues to deliver. According to Savills’ World Cities Prime Residential Index, values rose by more than 5% in the first half of 2025, with a further 4% to 5.9% increase forecast for the second half. That places Dubai among the world’s strongest performers, ranked just behind Tokyo, Seoul and Cape Town.

So, in case no one else has told you, we will: wealth is flowing east. The question is why... and the answer lies in the fundamentals that are pulling in global wealth while other cities push it away.

Why are high-net-worth individuals moving to Dubai real estate?

From the outside, Dubai might look like “what you see is what you get.” But once people are here, the advantages prove themselves: no income tax, strong yields, world-class schools and a safe, global lifestyle that makes families stay and plan their future. These fundamentals are what make it one of the most lucrative property markets in the world and that’s why global wealth is heading here at pace.

As Paul Sharland put it: “It’s not complicated. In Dubai you don’t lose income to tax, yet you gain strong rental yields, lifestyle advantages and long term growth. That’s the difference investors pick up on straight away.” What you see in Dubai is impressive, but what you don’t see is even more powerful.

High-net-worth individuals and family offices are arriving in record numbers. Savills’ 2025 Index places Dubai among the top five cities for prime price growth, while Henley’s Wealth Migration Report expects around 9,800 millionaires to move here this year alone. Here’s a better look at why they’re choosing Dubai.

And here’s what many forget: property isn’t just bricks and mortar. Through financial crises, shifting politics and changing migration flows, one thing hasn’t changed: people still prioritise a home. For some, it’s an emotional anchor. For others, it’s a wealth strategy. In Dubai, it’s both.
 

Why are investors leaving London, Paris and other global property markets?

This story isn’t just about Dubai’s strength. It’s also about the cracks showing elsewhere. Globally, acceleration in price growth slowed from 2.2% for the full year in 2024 to just 0.7% in the first half of 2025.

In London, higher stamp duties continue to weigh on demand. In Paris, rent caps have tightened supply. And in the United States, high mortgage rates, elevated prices and wider economic uncertainty have slowed luxury market activity. According to Savills, several of the world’s biggest and most expensive cities — including London, Paris, Shanghai and Los Angeles — even recorded negative prime capital value growth in H1 2025.  

These are not dramatic declines, but they show how regulation, high costs and volatility are eroding confidence in markets once seen as bulletproof.