Following the post-pandemic euphoria, the luxury real estate market is entering a new phase. The latest figures from Knight Frank’s 2026 Wealth Report confirm solid global growth for 2025, although it remains increasingly moderate.
The global luxury real estate market continues to grow, but at a significantly more measured pace than in previous years. According to Knight Frank’s latest report from April 2026, prime residential prices rose by an average of 3.2% in 2025. This growth marks a subtle turning point following the spectacular increases observed between 2020 and 2022.
The Middle East leads the way, with the Asia-Pacific region performing strongly
Many key locations in the Middle East experienced an exceptionally strong 2025. In the Gulf, the United Arab Emirates remained the global leader in high-end residential performance. Growth in the high-end real estate market in Dubai was very strong (+25.1%), with 500 home sales exceeding 10 million U.S. dollars, compared to just 113 in 2021. Abu Dhabi has gradually established itself as a destination of choice for the ultra-wealthy. Other fast-growing markets such as Riyadh and Jeddah in Saudi Arabia have also driven growth across the region: the Middle East recorded average growth of +9.4%.
In the Asia-Pacific region, up +3.7%, Asian urban real estate markets are experiencing very divergent trends. For example, while property values in Hong Kong fell by 2.1% in 2025, this same region recorded one of the sharpest increases in sales of ultra-luxury real estate, with 81 transactions exceeding $10 million, just behind Dubai. This momentum is driven by the recovery of the initial public offering (IPO) market, capital inflows from mainland China, and the implementation of a new visa program.
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