Dubai ranks 12th globally in Julius Baer’s Global Wealth and Lifestyle Report, showcasing its competitiveness in terms of cost of living compared to major global cities. Being the 6th most expensive city in the Europe Middle East and Africa region, Dubai has long been an attractive economic hub and a symbol of opulence in the Middle East region. Despite the impact of global pandemic settling into a ‘new normal,’ Dubai has managed to maintain its appeal for wealthy residents due to relatively lower inflation, living costs, and geopolitical tensions compared to other markets.
The ultra-rich in the Middle East are optimistic about their investment outlook, with 72 percent investing more year-on-year. The UAE’s strategic location at the crossroads of the East and West, with busy airports and prominent ports, makes Dubai an ideal market for global expansion. The region has seen a significant increase in spending on business and leisure travel, highlighting the growing interest in Dubai as an investment destination. The real estate sector, accounting for 8.9 percent of the economy, has shown impressive growth with property prices in Dubai increasing by 16 percent in US dollar terms.
The residential property market in Dubai is considered ‘hot property,’ attracting both global and local demand for luxury residential properties. The region’s wealthy are investing heavily in residential properties, making Dubai a key player in the global real estate market. Despite the upward trajectory in prices, residential property in Dubai remains relatively affordable compared to other cities in the region, attracting sophisticated investors looking for a competitive advantage. The report predicts a continued growth in demand for luxury residential properties in Dubai, keeping the city on the global investor radar.
Price rises for goods and services in the Julius Baer Lifestyle Index have slowed to 4.0 percent in US dollar terms over the past 12 months, making EMEA the most expensive region to live well. High-net-worth-individuals in all regions have increased spending on travel and hospitality, with the Middle East and APAC showing the highest growth. Middle East’s wealthy individuals focus on luxury goods like clothing, watches, and real estate, while Europe and APAC concentrate on hospitality. The demand for luxury residential properties in the Middle East remains significant, reflecting the region’s preference for premium products and investments.
Overall, Dubai’s strategic location, thriving real estate sector, and attractive cost of living make it a prime destination for wealthy individuals and investors. The city’s resilience in the face of global challenges, coupled with its growing appeal as a business and leisure destination, solidifies its position as a key player in the global economy. With increasing investments in luxury residential properties and continuous growth in various sectors, Dubai is poised for continued success and growth in the years to come.
