Dubai among top 10 costliest cities for rich in 2025: What this means for residents
TL;DR:
Dubai
has surged to 7th place globally in Julius Baer's 2025 Global Wealth and Lifestyle Report, the highest rank in the Middle East.
Luxury property and cars saw the steepest price increases, but inflation on everyday items remains low.
The city's tax-free incentives, high-end infrastructure, and lifestyle offerings are magnets for the global elite, yet middle-income expatriates are beginning to feel squeezed by rising living costs.
Dubai's rise as a global playground for the rich has taken a sharper form in 2025, with the emirate being ranked the 7th most expensive city in the world for high-net-worth individuals (HNWIs), according to the latest Julius Baer Global Wealth and Lifestyle Report.
What was once a modest desert trading outpost has now solidified its image as an elite destination marked by luxury real estate, premium cars, and an ultra-modern lifestyle. This ascent comes amid increasing competition from cities like Singapore and London, yet Dubai's unique blend of tax advantages, strategic location, and visionary infrastructure continues to attract wealthy investors and professionals alike.
However, for the broader expat community, this glamorous boom brings with it escalating concerns over affordability, especially in housing and schooling.
Dubai's Luxury Price Surge: Property and Cars Lead the Climb
Dubai's 7th-place global ranking, a jump of five positions from last year, is driven primarily by significant price hikes in residential real estate and luxury automobiles. The Julius Baer report indicates that property prices in Dubai surged by 17%, reflecting both the post-pandemic property boom and a wave of foreign investment in high-end developments.
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This growth is underpinned by sustained demand from HNWIs, especially those relocating from Europe, Asia, and even the broader Middle East in search of stable and lucrative property markets.
Simultaneously, the price of luxury cars climbed by 13% in the emirate, cementing Dubai's image as a city where status symbols dominate roads. With Lamborghini, Rolls-Royce, and Ferrari reporting record sales in the region, the appetite for exclusive automotive experiences is not just a trend but a cultural marker of affluence).
This is further bolstered by the UAE's zero tax on personal income and capital gains, which leaves residents with more disposable income to invest in high-end purchases.
How Dubai Stacks Up Globally and Regionally
In the broader comparison, Singapore retained the top spot, followed by London and Hong Kong, while Dubai's ascent to 7th place places it ahead of traditionally expensive cities like Paris, Milan, and New York. Within the Europe-Middle East-Africa (EMEA) region, only London, Monaco, and Zurich outperformed Dubai in terms of luxury living costs.
This positioning reflects not just price increases but also an evolving reputation. Dubai is no longer merely a tax haven or a tourism hotspot but is establishing itself as a permanent home for the ultra-wealthy, offering not just residences but a fully-fledged luxury lifestyle complete with fine dining, exclusive education, and bespoke healthcare.
Dubai's demographic composition underscores its magnetism for global wealth. As of mid-2025, the city is home to
over 81,000 HNWIs
.
This represents a doubling of the millionaire population over the past decade, a trajectory driven by consistent foreign direct investment, particularly in real estate, finance, and technology sectors.
Strategic Policies That Attract the Elite
Dubai's ascent isn't accidental but rather the result of strategic policy frameworks designed to lure global wealth. The UAE government has implemented several initiatives, including the Golden Visa, Property Investor Visa, and Entrepreneur Visa, all of which provide long-term residency without the need for local sponsorship.
Additionally, Dubai's zero tax on personal income, expansive Dubai International Financial Centre (DIFC), and a highly developed luxury market spanning private schools, top-tier medical facilities, and exclusive entertainment options create an ecosystem tailored to the elite. The city's ability to seamlessly combine Western-style comforts with Middle Eastern hospitality further enhances its appeal among affluent migrants from Europe, India, and China.
The Other Side: Expats Face Cost Pressures
Yet, amid the glitter, the less wealthy expatriate population is increasingly burdened by the city's escalating cost of living. According to Mercer's 2024 cost-of-living data, the cost of living in Dubai has seen a rise since 2024, raising 3 ranks from 18th to 15th.
Social media platforms are filled with expatriates sharing concerns about affordability, with users reporting difficulties in maintaining previous standards of living due to stagnant wages contrasted with rising housing, education, and healthcare costs.
This economic dichotomy could shape the social landscape in the years ahead, potentially creating a more segmented urban society.
What This Means for Dubai's Economic Future
The rapid growth of the millionaire population is reshaping Dubai's urban and economic development plans. As per Knight Frank's report, real estate transactions among HNWIs in Dubai reached an estimated USD 4.4 billion in 2024, representing a 76% year-on-year increase. These trends are likely to continue as Dubai gears towards its 2040 Urban Master Plan, which seeks to balance high-density luxury living with sustainability and infrastructure expansion.
However, experts caution that unless mid-tier salaries rise or affordable housing projects gain momentum, Dubai risks alienating a vital segment of its workforce essential for its service-driven economy. Balancing ultra-wealth attraction with broad-based affordability could be the emirate's next big policy challenge.
Dubai's leap to the 7th most expensive city globally for the wealthy underscores its remarkable transformation into a top-tier luxury hub. Through policy precision, infrastructure investments, and a calculated courting of the global elite, the city continues to redefine its global status. Yet, this glittering ascent comes with trade-offs, especially for the middle-class residents navigating an increasingly costly urban life.
For Dubai to maintain its sheen, a sustainable path that caters to both ends of the wealth spectrum will be key.
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