The Gulf’s rising star: Abu Dhabi’s luxury property market gains momentum
Abu Dhabi’s emergence as a global wealth hub is driving demand for luxury homes, even as geopolitical tensions reshape property markets across the Middle East.
A wealth ecosystem is building confidence in luxury property.
Strong residential sales are underpinned by Abu Dhabi’s expanding financial sector, sovereign capital and government-backed development.
During the summer of 2026, Modon sold 1,700 homes at Hudayriyat Golf Estates within days of launch. The sales took place as tensions between the US and Iran escalated following a fragile pause in hostilities, demonstrating how wealth has continued to flow into the emirate despite wariness among investors to commit to deals elsewhere in the region.
Abu Dhabi’s rapid rise as a global wealth hub follows the government’s efforts to convert its oil wealth into a broader financial ecosystem. Its sovereign wealth funds, ADIA, Mubadala and ADQ, have invested heavily alongside global institutions.
Meanwhile, the Abu Dhabi Global Market is a financial free zone following English common law, with a regulatory system on a par with other global wealth hubs.
Abu Dhabi is combining sovereign capital, financial infrastructure and high-quality development to strengthen its position as a global wealth hub.
Growth in employment and assets under management at the Abu Dhabi Global Market has continued in 2026.
“Abu Dhabi is a mature market built around beachside living and golf courses, and is less of a party scene than Dubai, which has been a factor in attracting family offices and other Wall Street institutions,” says Henry Faun, Head of Knight Frank’s Private Office in the Middle East.
Government-backed developments are opening a new chapter for waterfront living
Freehold ownership, high-quality development and state sponsorship are reinforcing the appeal of Abu Dhabi’s new communities.
Hudayriyat Golf Estates is part of the much larger Hudayriyat Island masterplan, a residential-led project that will include sports, leisure and hospitality facilities.
The project “is freehold, high quality and government-backed, all of which gives buyers confidence to commit,” Faun adds.
Fahid Island, by government-backed developer Aldar, enjoys similar tailwinds. Pitched as “the UAE’s first island designed around wellbeing”, it will combine new homes and beachfront with Berm Park, a wellness and fitness corridor.
The strongest schemes are selling more than homes: they are offering confidence in the developer, the location and the long-term vision for the destination.
Geopolitical tensions are reshaping development across the Gulf
Dubai remains the world’s leading city market for branded residences, but new sales launches slowed during the second quarter of 2026.
The Dubai market is more reliant on international buyers, although it is likely to command a sizeable share of the region’s future development activity.
Tensions between the US and Iran continue to shape sales patterns elsewhere in the region. Sales in Jeddah have continued to perform strongly, in part because the Red Sea port city is so far from the conflict.
Four Seasons will deliver a hotel and branded residences at The Corniche, while Raffles Jeddah is also set to deliver branded homes. The Trump Organization, Mandarin Oriental and One&Only all have projects in the pipeline.
Liam Bailey is Global Head of Knight Frank’s Research Department, leading the firm’s global research strategy and overseeing projects across the UK and international markets.
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