Dubai’s real estate market is once again making headlines, outperforming major cities like London, Paris, and Madrid. With property prices and rental values continuing to rise, investors worldwide are taking notice.
Dubai’s prime residential capital values climbed by 6.8%, while rental values surged an impressive 23.5%. This momentum is set to continue in 2025, with property values expected to grow by up to 9.9% and rental prices projected to rise by more than 10%.
Why Dubai is Leading the Real Estate Market
Dubai’s popularity among global investors is driven by strong demand and limited supply in prime areas. High-net-worth individuals (HNWIs) and family offices are flocking to the city, boosting both sales and rental markets. The luxury real estate sector, including waterfront developments and branded residences, is seeing increasing interest.
Rising Rental Prices Dubai’s rental market is thriving, with international buyers often choosing to rent before making a purchase. Currently, prime properties command around $930 per square foot (€9,200 per square metre). As the city continues to attract affluent residents, rental values are expected to grow even further in 2025.
A Prime Destination for Investors Dubai remains a top choice for real estate investors looking for high returns. With its world-class infrastructure, tax-free benefits, and growing demand for luxury homes, the city offers strong capital appreciation and rental yields.
As 2025 unfolds, Dubai’s property market is set to remain a powerhouse, attracting investors and buyers from around the world. If you’re considering a real estate investment, now is the time to explore Dubai’s booming market.
2025 prime capital value growth forecast
| CITY | 2025 FORECAST |
CAPITAL VALUE GROWTH IN 2024 |
PRIME CAPITAL VALUE DEC 2024 ($PSF) |
PRIME CAPITAL VALUE DEC 2024 (€PSM) |
|---|---|---|---|---|
Dubai |
+8% to 9.9% |
6.8% |
$930 |
€ 9,200 |
Sydney |
+4% to 5.9% |
3.9% |
$1,950 |
€ 19,200 |
Madrid |
+4% to 5.9% |
9.4% |
$1,120 |
€ 11,000 |
Lisbon |
+4% to 5.9% |
6.0% |
$1,400 |
€ 13,800 |
Barcelona |
+4% to 5.9% |
8.6% |
$870 |
€ 8,600 |
Mumbai |
+2% to 3.9% |
4.4% |
$1,200 |
€ 11,800 |
Shanghai |
+2% to 3.9% |
-2.4% |
$2,000 |
€ 19,700 |
Amsterdam |
+2% to 3.9% |
7.4% |
$1,030 |
€ 10,200 |
Miami |
+2% to 3.9% |
-1.2% |
$1,490 |
€ 14,600 |
New York |
>0% to 1.9% |
-0.90% |
$2,590 |
€ 25,500 |
Seoul |
>0% to 1.9% |
6.90% |
$1,860 |
€ 18,300 |
Beijing |
>0% to 1.9% |
-2.10% |
$1,490 |
€ 14,700 |
London |
-3.9% to -2% |
0.0% |
$1,920 |
€ 18,900 |
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