Dubai defies global housing slowdown

Dubai's low tax structure, stable currency, advanced infrastructure and safe-haven positioning have created an investment environment that remains largely insulated from the global slowdown.”

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“Prime house price growth has cooled to its slowest pace in two years, as a slowing pace of global rate cuts keeps a lid on performance across global cities. But with rates set to fall further in 2026, the groundwork for a rebound is building,” said Liam Bailey, global head of research at Knight Frank.

Globally, regional divergences are stark. Tokyo has emerged as the strongest performer, with prime prices skyrocketing more than 50 per cent annually, partly due to buyers migrating from increasingly expensive new builds to the resale market. A weak yen and renewed foreign investment have further fuelled the surge. Hong Kong’s luxury market is finally stabilising after years of corrections, supported by monetary easing and opportunistic buying. In contrast, China’s mainland luxury segment remains subdued, as policymakers continue to prioritise industrial and consumption-driven growth over real estate stimulus.