Where to Buy Luxury Real Estate in 2026

"Cross-border house-collecting is gaining traction as a means of diversification for those fleeing political instability and wealth taxes. Indeed, for many of the globally mobile, the concept of primary and secondary residences is becoming outdated, with rotation between several locations across the year now increasingly common. Luxury real estate is an attractive option due to capital growth potential, lifestyle attractions, and the usual plus-points of good available education and healthcare."

"A spread of luxury real estate investments hedged across a few jurisdictions remains one of the most stable asset portfolios in uncertain times. But where to put your money? Whether you're a pure investor or are in the market for a palm-fringed exit strategy, here are the property hotspots to target in 2026. Where to buy luxury property The investment play: Dubai and Abu Dhabi In May, Fitch Ratings predicted a 'moderate correction' in Dubai pricing by 2026, following a 60 percent price increase from 2022 to March 2025. However, oversupply is restricted to the mid-range sector, says Liam Bailey, Knight Frank's global head of research, with competition for luxury property in Dubai still very intense in super-prime areas."

"Lara Michaelsen, head of European private office at Engel & Völkers, agrees that the city-state, where expats make up around 90 percent of the population, is a good bet for luxury property in 2026. Yet it's not quite the boom market that it was, says Bailey. 'Four years ago, your tax-free salary would have given you a very good lifestyle, [but now] it's a much more expensive proposition.' Investors are increasingly looking to Abu Dhabi, says Victoria Garrett, head of global residential at Savills, with its new international schools, "huge infrastructure projects and amazing lifestyle."

Wealthy, globally mobile individuals increasingly collect homes across borders to diversify against political instability and wealth taxes, rotating among multiple residences annually. Luxury real estate attracts buyers for capital growth, lifestyle, education and healthcare access, and offers a stabilizing hedge when spread across jurisdictions. Dubai has seen a rapid price rise—about 60 percent from 2022 to March 2025—with Fitch forecasting a moderate correction concentrated in mid-range stock while super-prime demand remains intense. Abu Dhabi is drawing investor interest because of new international schools, major infrastructure projects and improving lifestyle amenities, shifting buyer focus within the UAE.

Read at Elite Traveler