Dubai has been ranked as one of the top three prime residential markets globally in terms of capital value growth in the first half of this year as prices continue to surge in the emirate on strong investor demand.
The emirate recorded a 5 per cent annual growth in prices in the six months to the end of June in the prime residential segment, driven by “rising immigration flows, steady investor confidence and limited supply in the luxury segment”, according to Savills’ latest World Cities Prime Residential Index.
Tokyo, with an 8.8 per cent price appreciation in prime residential values topped the index, followed by German capital Berlin.
Dubai’s “global connectivity, investor-friendly policies and continuing infrastructure development continue to underpin its status as one of the world’s leading real estate markets”, said Andrew Cummings, head of residential agency, Savills Middle East.
“Lower costs associated with buying and selling property compared to global peers, and further headroom for price growth mean that Dubai’s appeal on an international scale is still very strong.”
Dubai's property market has been booming in recent years, having benefited from government initiatives such as residency permits for retired and remote workers, expansion of the 10-year golden visa programme and overall growth in the UAE’s economy on diversification efforts.
In July, a scheme was also launched to help Emiratis and UAE residents who do not own freehold residential property in the emirate get on the ladder.
In the first half of 2025, the volume and value of all real estate transactions in Dubai rose sharply amid the entry of more than 59,000 more investors into the booming market, the Dubai Media Office said in July, quoting Dubai Land Department (DLD) data.
The number of transactions reached 125,538, up nearly 26 per cent on an annual basis, while value of these transactions rose about 25 per cent to about Dh431 billion, according to the DLD data.
Dubai has outpaced other markets in sales and rental growth of prime property in the first half, the Savills report said. Across the 30 global cities tracked by Savills in the index, prime capital values grew by 0.7 per cent during the six-month period.
The report also highlighted mortgage trends across leading global markets, with buyers in the UAE typically accessing loan terms of 15 to 30 years. Minimum deposits are set at 15 per cent for nationals and 20 per cent for expatriates.
“These conditions reflect a relatively mature financing environment that supports both domestic purchasers and international investors, further contributing to the resilience of the prime residential sector,” Savills said.
Luxury prices set to rise further
Looking towards the second half of the year, Savills anticipates average capital value growth of 1.5 per cent globally.
Dubai is expected to remain one of the top performers, especially for capital value growth, it said.
Prime values in Dubai are expected to rise a further 4 per cent to 5.9 per cent in the second half of the year on the back of high demand from investors.
While 60 per cent of cities in the index recorded positive capital value growth in the first half of the year, declines in the remaining markets were “generally modest and concentrated in larger, more mature cities”, Savills said.
“As we move into the second half of the year, supply-side constraints, macroeconomic uncertainty and policy responses will continue to shape the trajectory of prime residential markets globally, but prices are expected to remain in positive growth territory,” it added.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Walls
Louis Tomlinson
3 out of 5 stars
(Syco Music/Arista Records)
In numbers
1,000 tonnes of waste collected daily:
- 800 tonnes converted into alternative fuel
- 150 tonnes to landfill
- 50 tonnes sold as scrap metal
800 tonnes of RDF replaces 500 tonnes of coal
Two conveyor lines treat more than 350,000 tonnes of waste per year
25 staff on site
UK%20record%20temperature
%3Cp%3E38.7C%20(101.7F)%20set%20in%20Cambridge%20in%202019%3C%2Fp%3E%0A
The biog
Name: Dhabia Khalifa AlQubaisi
Age: 23
How she spends spare time: Playing with cats at the clinic and feeding them
Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need
Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman
Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs
Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing
GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
'Cheb%20Khaled'
%3Cp%3E%3Cstrong%3EArtist%3A%20%3C%2Fstrong%3EKhaled%3Cbr%3E%3Cstrong%3ELabel%3A%20%3C%2Fstrong%3EBelieve%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
FIXTURES
December 28
Stan Wawrinka v Pablo Carreno Busta, 5pm
Milos Raonic v Dominic Thiem, no earlier then 7pm
December 29 - semi-finals
Rafael Nadal v Stan Wawrinka / Pablo Carreno Busta, 5pm
Novak Djokovic v Milos Raonic / Dominic Thiem, no earlier then 7pm
December 30
3rd/4th place play-off, 5pm
Final, 7pm
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