The 2025 property market was all about resilience. Despite economic challenges and political instability, the UK property market still experienced steady house price growth of around 3-4 per cent, but for those looking to invest overseas, the opportunities can be even greater. Not sure what to expect from 2026 and, more importantly, where to make your next real estate investment? We asked experts from leading property agencies including Sotheby’s, Christie’s, Knight Frank and JLL to reveal what and where is hot in the world of property this year.
United Arab Emirates
Dubai’s tax-free economy has been a huge draw for investors for years, as buyers pay a one-time 4 per cent Dubai Land Department (DLD) fee – which represents excellent value when compared to the roughly 10 per cent payable in the UK. Alex Isidro, managing director of UK Sotheby’s International Realty, says: “Dubai remains one of the strongest global luxury markets due to tax advantages, investor-friendly regulation and strong rental demand. Prime areas include Palm Jumeirah, Emirates Hills and branded residences in Downtown Dubai. High-end villas and penthouses appeal to both lifestyle buyers and yield-focused investors.”
According to the Neginski Real Estate Agency, Dubai saw more luxury homes worth $10+ million sold than New York and London combined in 2025. Plus, Knight Frank’s Global Super-Prime Intelligence report, which was released at the end of 2025, also revealed Dubai was the number one city for sales during autumn, representing an approximate value of $2 billion.
Elsewhere, Helena Moyas de Forton, managing director of EMEA & APAC at Christie’s International Real Estate, says Ras al Khaimah and Abu Dhabi are both having a moment. “Just over an hour from Dubai, Ras Al Khaimah (RAK) has long been known as a leisure getaway in the UAE. Today, it has grown into one of the most attractive emerging real estate markets in the region, if not the world. As in Abu Dhabi, interest in the region is in part driven by the country’s investor-friendly policies and its Golden Visa, but buyers and investors also look to RAK as a more affordable alternative to Dubai, especially for luxury waterfront and branded residences.
“The once-sleepy region is now home to several branded residences from top luxury brands, including Waldorf Astoria, Ritz-Carlton and Nobu, with more underway. Approximately 5,600 branded units are set to debut in just the next three years, which is unprecedented growth for the segment. For more evidence of Ras al Khaimah’s growing popularity, the market has experienced a 25,000 per cent rise in real estate transactions over the last seven years, with a 39 per cent rise in property prices since Q1 2025. RAK’s buyers tend to hail from the UK, India, Russia and China, a trend that is expected to continue in 2026.”
Abu Dhabi. Image: Shutterstock
Moyas de Forton also says the UAE’s capital, Abu Dhabi, is home to a growing number of luxury residences which are appealing to second-home buyers. “One of the Middle East’s most diverse and business-friendly economic landscapes, Abu Dhabi’s real estate market hit a historic peak in late 2025, with a 76 per cent year-on-year increase in volume of sales transactions. The majority of this growth is seen in the city’s apartments and villas, especially within newly launched master communities and entire islands.
“One example is Fahid Island, Abu Dhabi’s first coastal wellness destination, integrating luxury living with health and sustainability. Although the first residential development there isn’t expected to deliver until 2029, as of June 2025 it had already generated more than Dh3.5 billion (£708 million) in sales, a signal of the region’s popularity.
“Abu Dhabi has traditionally attracted buyers from India and the UK, but today, the city is seeing buyers from more diverse locations including France, Kazakhstan, the US, Russia and China. In total, 97 nationalities participated in the city’s real estate market last year.”
London, UK
Image: Shutterstock
Since 2016, international buyers have accounted for 62 per cent of all property sales in London, highlighting a diverse, global investor base. “Mayfair, Belgravia, Knightsbridge and Chelsea remain among the world’s safest luxury property markets,” explains Isidro. “Demand is driven by international wealth, limited supply and London’s status as a global financial and cultural hub. Best suited for capital preservation and long-term appreciation rather than yield on investment, with typical stock including grand townhouses, lateral apartments and ultra-prime penthouses which perform the best.”
Alex Carr, head of prime central London residential development at JLL, adds that buyers are gravitating towards locations that reflect the lifestyle they aspire to. “It isn’t about square footage or postcode alone, but by how a place makes people feel and the version of life it enables. From morning runs through landmark green spaces to evenings spent at the city’s best restaurants, galleries, and cultural venues just moments from home, demand will be driven by homes that sit at the heart of an elevated way of living.”
He has handpicked three London boroughs he thinks will be making waves in the property market in 2026. “St James’s Park has emerged as one of the most compelling places to buy. A new wave of regeneration is adding fresh energy while preserving the historic character that has always made it special. Developments like The Broadway are helping to reposition St James’s Park as a highly desirable residential destination offering contemporary homes, paired with lifestyle-led amenities including a private cinema and spa, all set within an exceptionally well-connected central location. With one of London’s most iconic parks on its doorstep and Westminster just moments away, it offers a rare sense of tranquillity and prestige at the centre of the capital.”
Elsewhere, Kensington continues to stand out as a “resilient investment”, while Bankside has firmly established itself as a place to live, not just visit. “The area’s cultural energy and riverside neighbourhood is seeing residential demand growth,” says Carr. “Opus at Bankside Yards reflects this shift, adding new homes within the riverside setting that complements the area’s creative nature. With the Thames, Borough Market and South Bank close by, Bankside will continue to appeal to buyers looking for a central London location with real modern character.”
Surrey and The Cotswolds, UK
Castle Combe, Cotswolds. Image: Shutterstock
It may come as no surprise, especially with a clutch of the world’s rich and famous living in the Home Counties, that Surrey and Cotswolds are on the up when it comes to property investment. Isidro has singled out private estates in Surrey’s St George’s Hill and Wentworth as key areas for 2026. “These gated estates offer privacy, security and scale within easy reach of London. Demand is consistently strong among UHNW buyers seeking family homes or UK bases. Properties are predominantly large detached mansions with leisure facilities, making them long-term lifestyle assets with resilient values.”
North Downs, Surrey. Image: Shutterstock
He also spotlights the Cotswolds, but warns supply is waning – which is great for those looking to sell, as it supports long-term price stability, but less good for those looking to move into the area, as there are less of those quintessential, yellow-hued stone buildings to choose from. “The Cotswolds is a premier luxury countryside market known for heritage villages, protected landscapes and international appeal,” adds Isidro. “Properties typically include historic manor houses, high-end farmhouses and luxury barn conversions, often purchased as second homes or trophy lifestyle investments.”
Lake Como, Sardinia and Cortina d’Ampezzo, Italy
Cortina d’Ampezzo. Image: Shutterstock
On both ends of the weather spectrum, Italy’s sun and snow have captured the attention of property investors. First up, Cortina d’Ampezzo – which is gearing up to host the 2026 Winter Olympics – is set to be this year’s most attractive alpine property prize. Current market data from Knight Frank’s 2026 alpine property report reveals that Cortina commands €19,500 – €21,500 per square metre for prime properties, which is roughly 40 per cent below comparable offerings in St Moritz or Courchevel. Not bad when it comes with a guarantee of Olympic-level skiing on your doorstep.
As ever, the numbers do the talking: 50 per cent of those surveyed said the upcoming 2026 Winter Olympics would influence their decision to buy in Cortina or the Italian Alps, and while the majority of current clients remain Italian, Knight Frank has reported that requests from foreign buyers are increasing significantly, especially from the UK and US.
Lake Como. Image: Shutterstock
Further south, Lake Como’s reputation for attracting the rich and famous remains unchanged – and increasing numbers are vying for a coveted spot on Italy’s most glamorous lake. Isidro says Lake Como, along with Sardinia, are leading the country’s luxury property market: “These are iconic European markets combining lifestyle appeal with global prestige. Lake Como offers scarce waterfront villas with long-term value protection, while Sardinia’s Costa Smeralda attracts buyers seeking modern Mediterranean estates. They are best suited to capital appreciation and personal use rather than high rental yields.”
Andermatt, Switzerland
According to Knight Frank’s 2026 alpine property report, this sector of the market is rewriting the rules of luxury real estate. While many global prime markets slowed, ski homes have surged 23 per cent on average in the past five years, while 73 per cent of HNWIs surveyed would consider living full time in the Alps.
Switzerland’s Andermatt is leading the way. Having topped the Knight Frank Alpine Property Index with 14.6 per cent annual growth, the renowned ski resort, which sits outside the restrictions of Lex Koller and Lex Weber, is attracting a lot of international interest, particularly from US buyers.
Other key takeaways from the report are the impact of Chamonix’s new ‘one out, one in’ rule – which has halted new construction for second-home owners in certain areas to tackle the local housing shortage – resulting in tightened supply and higher premiums on properties with development rights. Plus, nearly half of buyers now factor climate resilience into their purchase decisions, with Val Thorens, Val d’Isère and Zermatt leading Knight Frank’s Alpine Sustainability Index. Finally, perhaps unsurprisingly, Gstaad, followed by St Moritz and France’s Courchevel 1850, remain the most pricey investments in the mountains. See you on the slopes.
The Caribbean
Bridgetown, Barbados. Image: Shutterstock
In 2026, several Caribbean markets are standing out for both lifestyle appeal and investment momentum, with Chris Parra, president and CEO of One Caribbean Estates, highlighting four destinations that are proving popular. “Barbados is continuing to rise in global interest driven by its strong luxury sales, fast transaction times, attractive visa and tax structures, and appeal to digital nomads, retirees and affluent buyers from the UK and US,” says Parra.
“Elsewhere, Antigua and Barbuda is bolstered by its Citizenship‑by‑Investment (CBI) programme, luxury resort developments, and privacy‑oriented lifestyle that draws high-net-worth individuals, while Saint Lucia benefits from new golf courses and branded hotel projects, including Cabot Saint Lucia and Hyatt developments, fuelling growth in luxury villas and beachfront properties.”
So, why are these areas proving to be strong investment opportunities? The Citizenship‑by‑Investment (CBI) programme, nicknamed the ‘golden passport’, encourages prospective buyers to invest with the promise of a second nationality. “These Caribbean markets are proving to be strong investment opportunities due to a combination of economic, lifestyle, and structural factors. Government incentives, such as CBI and residency programmes, continue to attract international capital, while high-speed internet, improved flight connectivity, and world-class amenities make the islands highly appealing to remote workers and high-net-worth buyers. Finally, limited beachfront land and branded residential developments add a scarcity and prestige factor, sustaining upward price momentum and exclusivity across the region,” explains Parra.
Of course, the Caribbean is synonymous with villas and beachfront estates – and this market is expected to surge over the next 12 months. “Branded residences and resort-linked homes, such as Rosewood, Hyatt, and Nikki Beach, are appealing for their combination of hotel-style amenities and ownership benefits. Condominiums and turnkey rental units are particularly popular in markets like the Dominican Republic and Cayman Islands, offering attractive short-term rental yields, while eco-conscious and technology-enabled properties are increasingly commanding premium prices.”
Lisbon, Portugal
Lisbon, Portugal. Image: Shutterstock
The historic city of Lisbon is squarely in the sights of buyers from around the world this year thanks to its value, excellent food, great weather and high quality of life. Moyas de Forton says: “Despite ending its residency by investment programme in late 2023, interest in the country continues to grow and new development is following alongside its historic homes.
“Namely, six branded residences are scheduled for delivery in Lisbon in the next five years, including Karl Lagerfeld Residences Lisboa, Aroeira Collections by Missoni and YOO Lisbon from YOO Studio. These newer developments currently account for more than 60 per cent of the sales at Porta da Frente, the exclusive Lisbon affiliate of Christie’s International Real Estate, with buyers coming from Brazil, Miami, US and Europe.”
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