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Time of India
19-07-2025
- Business
- Time of India
Dubai among top 10 costliest cities for rich in 2025: What this means for residents
Dubai rose five places to rank 7th globally in Julius Baer's 2025 Global Wealth and Lifestyle Report/Representative Image 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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like No annual fees for life UnionBank Credit Card Apply Now Undo 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.
Gulf Today
14-07-2025
- Business
- Gulf Today
Dubai ranks among world's top cities for high-net-worth individuals
Dubai has emerged as one of the top global destinations for attracting high-net-worth individuals (HNWIs), climbing five spots to rank 7th among the world's most expensive cities and 4th in the Europe, Middle East, and Africa (EMEA) region, according to the 2025 Global Wealth and Lifestyle Report by Swiss private bank Julius Baer. Despite only a slight 1% rise in average local currency prices, Dubai has become a strong contender against traditional wealth hubs such as London, Monaco, and Zurich. Major Shifts in Global Rankings The rankings saw significant movement, with both Bangkok and Tokyo climbing six places, while Dubai continued to gain higher positions. The global rankings remain fiercely competitive. Singapore retained its position as the most expensive city in the world for HNWIs, followed by London in second place and Hong Kong in third. Regional Rankings Cities in the EMEA region once again dominated the list, making up more than half of the world's top 10 most expensive cities. London led the region and rose to 2nd globally, while Monaco and Zurich ranked 4th and 5th, each moving up one spot. Dubai rose five places to 7th, reinforcing its competitiveness with traditional wealth centers. Milan and Frankfurt maintained their previous rankings, while Paris slipped slightly. Johannesburg remained at the bottom despite some price increases. Overall, prices across the EMEA region remained relatively stable, with minor declines in some cities like Zurich. The largest price increase in the region occurred in Paris, where travel and hospitality costs rose by 5% year-on-year. Private education costs in London also rose due to recent legislative changes. In the Middle East, there was a strong demand from wealthy residents for both experiential and material luxury goods, with particular interest in hotels, men's fashion, luxury handbags, fine dining, and smartphones. Given the region's diverse and expansive economies, performance is expected to vary over the coming year. The eurozone is projected to experience modest growth and further declines in inflation, while Dubai is forecasted to maintain strong growth in 2025 and beyond, driven by tourism, trade, and financial services. Dubai's Rising Prosperity Dubai's rapid transformation into a global hub for luxury, business, and innovation continues to boost its ranking among the world's top cities. The city continues to flourish despite a slowdown in the global luxury lifestyle market amid geopolitical and economic uncertainties. The report notes that while many prices in Dubai remained stable last year, there were sharp increases in high-cost goods such as automobiles (up 13%) and residential real estate (up 17%), which impacted the overall cost of living for wealthy residents. Dubai's real estate market posted exceptional growth in 2024, with property sales rising by 27% year-on-year, reflecting growing interest in the city as a long-term residence for HNWIs and their families — many of whom have now relocated to Dubai. The trend of millionaire migration to Dubai, which began during the COVID-19 pandemic, is expected to continue, with net inward flows surpassing those of all other countries. This cements Dubai's position as a leading destination for the global elite. According to Henley & Partners, residency visa applications from millionaires have increased by 102% over the past decade. Several factors contribute to Dubai's appeal, including its favorable tax environment, high quality of life, and forward-thinking residency programs such as the Golden Visa and Entrepreneur Visas. Additionally, Dubai is a top global financial hub — the Dubai International Financial Centre (DIFC) experienced unprecedented growth, with a 25% rise in active companies in 2024. Dubai is confidently advancing toward the future, with expectations for significant economic growth in 2025 and accelerated efforts to fulfill the goals of the ambitious D33 Economic Agenda, which aims to double the emirate's economy by 2033. Preparing for a Changing Demographic In anticipation of a 29% increase in the population aged 60 and above by 2050, Dubai is enhancing its senior care systems to deliver luxury and wellness services throughout every stage of life, focusing on comprehensive health and wellbeing for residents. Dubai is now reaping the rewards of its vision to become an innovative, forward-looking city offering the highest standards of living. Dubai International Airport recorded a record 92.3 million passengers in 2024, making it the world's busiest airport for international traffic. Further growth is expected as plans for a complete upgrade of Dubai's second airport progress. Given its current upward trajectory, Dubai is likely to enter the global top 3 most expensive cities in the coming years. Despite the rising cost of luxury living, Dubai continues to attract high-net-worth residents in growing numbers. Rishabh Saxena, Co-Head of Global Asset Class Specialists at Julius Baer, stated, 'Gulf economies continue to demonstrate remarkable resilience.' UAE Maintains Economic Momentum The UAE's economy remains strong. Abu Dhabi's non-oil economy grew by 8.6% in 2024, with non-oil sectors contributing more than 55% of GDP. Dubai continues to lead regional cities in post-pandemic recovery in the services and tourism sectors, with over 22 million visitors in 2025. Dubai's airports, among the busiest in the world, have solidified the emirate's status as a global hub for trade and tourism. The rising prominence of financial centers like DIFC and Abu Dhabi Global Market highlights the UAE's growing role as a regional hub for investment, private capital, and global finance. These centers are increasingly at the forefront of innovation, especially in areas such as digital assets, fintech, and artificial intelligence, which are becoming the foundation of future-ready, diversified economies.
