Tokyo leads Prime Residential Markets Globally for Capital Appreciation

Tokyo leads Prime Residential Markets Globally for Capital Appreciation, Reports Savills

Tokyo led the index with an 8.8% rise in capital values, fuelled by strong demand and
constrained supply. Berlin and Seoul also performed strongly, each recording growth above 5%,
alongside Dubai.
The report also highlights mortgage trends across key global markets. In the UAE, buyers
typically access loan terms of 15 to 30 years, with both fixed and variable options available.
Minimum deposits are set at 15% for nationals and 20% 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.
In the prime segment, mortgaging is typically a strategic choice rather than a necessity, and
rarely about affordability. Considerations around capital efficiency, availability of liquidity for
other investment avenues, risk management and long-term financial structure play a role.
Looking towards the second half of the year, Savills anticipates average capital value growth of
1.5% and rental growth of 1% across the 30 global cities tracked. Dubai is expected to remain
one of the top performers, especially for capital value growth.

“Despite wider macroeconomic uncertainty, Dubai’s prime residential market continues to
demonstrate stability bolstered by strong fundamentals,” said Andrew Cummings, Head of
Residential Agency, Savills Middle East. “The city’s global connectivity, investor-friendly
policies and ongoing infrastructure development continue to underpin its status as one of the
world’s leading real estate markets. 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 has outpaced other global markets in capital value and rental growth of prime property.
Across the 30 global cities tracked by Savills in this index, prime capital values grew by 0.7% in
H1 2025, while rental values outpaced sales growth with an increase of 2% over the same
period.