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Khaleej Times
20 hours ago
- Business
- Khaleej Times
Dubai is a world's new second-home capital as demand rises
Dubai, long admired for its architectural marvels and tax-friendly policies, has evolved beyond being merely a playground for the wealthy. Today, it is firmly establishing itself as a permanent lifestyle destination for global citizens. Over the past few years, the emirate has seen a significant surge in high-net-worth individuals acquiring prime properties — not just as a means of portfolio diversification, but for actual personal use. Historically, Dubai's real estate market was dominated by flippers and short-term investors attracted by high rental yields, off-plan appreciation, and rapid development cycles. However, the profile of buyers has shifted dramatically, especially in the five years following the pandemic. Today's buyers are more emotionally invested, seeking long-term security, lifestyle benefits, and a true home for themselves and their families. This transformation has been further supported by the introduction of Golden Visas, enhanced residency laws, and Dubai's unmatched lifestyle appeal. These factors have made it easier and more desirable for foreigners to settle in the city. As a result, demand in the real estate sector has moved away from speculative investments toward end-user purchases, bringing greater stability and sustainability to the market. Why Second-Home Buyers Flocking to uae 'The lifestyle factors attracting second-home buyers to Dubai include a strong sense of safety, world-class infrastructure, a convenient geographic location, and significant tax advantages, such as zero income tax,' says Svetlana Vasilieva, Head of Secondary Sales at Metropolitan Premium Properties. In particular, families are increasingly making Dubai their second home. Drawn by the city's secure environment, excellent schooling options, and abundant family-friendly amenities, many are opting for larger residences to accommodate growing household needs. 'The introduction of initiatives like the Golden Visa and streamlined family sponsorship processes have made Dubai an even more attractive destination for families,' Vasilieva adds. 'We are seeing a clear rise in demand for 4-5 bedroom homes designed for comfort and long-term living.' Echoing this trend, Sara Aji, Managing Partner of Alma Developments, notes, 'Dubai's appeal has broadened beyond traditional investors. Families now prioritise liveability over speculation. At Alma Gardens, for example, there's increasing demand for thoughtfully designed homes with features like built-in studies, ample storage, and community amenities that cater to multi-generational living and hybrid work setups.' Dubai's reputation as a retirement-friendly city is gaining momentum thanks to the retirement visa programme and the city's tax-free environment. 'Retirees are increasingly considering Dubai for second homes,' Vasilieva observes. 'The combination of a modern, well-connected city with attractive tax benefits makes it an ideal choice for a comfortable retirement abroad.' At the same time, Dubai is emerging as a hotspot for digital nomads and remote professionals. The city's remote work visa, rapid internet, numerous co-working spaces, and thriving expat communities create the perfect ecosystem for location-independent lifestyles. Kareem Fahmy, Founder and CEO of Innovate Living and Co-Founder of Omoria, comments: 'We're seeing interest from professional couples, entrepreneurs, and remote workers relocating from major global cities. They seek not only tax and climate advantages but also a high quality of life. Dubai offers a secure, vibrant, and culturally rich environment that meets diverse lifestyle needs.' 'The shift we're witnessing is from pure investment to lifestyle-driven purchases,' says Aamil Tabani, CEO of Golden Bridge Real Estate. 'Buyers today want more than a property, they want a city that supports their way of life.' Dubai's unique blend of modern luxury, year-round sunshine, and top-tier infrastructure makes it a compelling choice for second-home ownership. 'From family-friendly healthcare and international schools to leisure facilities like golf courses, beaches, fine dining, and entertainment hubs, Dubai offers a lifestyle where individuals and families can live comfortably for months at a time,' Tabani explains. 'This lifestyle appeal is the real magnet for second-home buyers.' Tax-free Living and Long-term Visas With its bold visa reforms, investor-friendly regulations, and enviable tax structure, the emirate is outpacing traditional second-home markets like London, Paris, and Singapore. 'Dubai offers substantial tax advantages compared to traditional second-home destinations like London, Paris, or Singapore — especially for high-net-worth individuals, investors, and expatriates,' says Vasilieva. 'One of the most compelling benefits is that Dubai imposes zero annual property tax, no capital gains tax, no inheritance tax, and no personal income tax.' Compare that with Europe's leading cities, where annual property taxes range from 1% to 3%, and rental income can be taxed up to 45%, depending on tax residency and income brackets. In Singapore, foreign buyers face stamp duties of up to 60%, along with income tax on rental income capped at 22%. Dubai, in contrast, offers clarity and predictability. 'Second-home ownership in London, Paris, or Singapore often comes with a web of stamp duties, inheritance taxes, and high recurring levies,' says Aji. 'This makes Dubai not only a fantastic lifestyle destination but also a more cost-efficient place to invest in real estate.' Beyond its favourable tax regime, Dubai is also redefining how the world approaches property-linked residency. 'The introduction of long-term visas, particularly the 10-year golden visa, has been a game-changer,' says Tabani. 'It provides security, confidence, and mobility.' Today, investors can secure a 10-year golden visa by investing just Dh2 million in real estate — even through mortgage-backed purchases. The recent removal of the minimum down payment requirement for visa eligibility has further opened the gates for a broader investor base. 'Policy innovation has been a catalyst,' Tabani adds. 'Combined with transparent regulations and ease of property registration, it has boosted international interest in Dubai as a long-term second-home destination.' A recent example is the introduction of the 'visa on hold' procedure, which allows residents to temporarily suspend their visa while transferring it to a new property. This makes it easier for end-users to relocate within Dubai or upgrade their investment without bureaucratic red tape. Additionally, developers are sweetening the deal. From escrow-protected payment plans to post-handover options, buyers are finding it easier than ever to step into the market. 'These changes reflect a shift from transactional investment toward encouraging deeper lifestyle integration,' notes Aji. 'Dubai's tax environment continues to be one of its most compelling value propositions,' says Fahmy. 'But equally important is the government's proactive approach to regulation. The UAE now offers a unique mix of fiscal advantage, transparency, and lifestyle.' He points out that the 9% corporate tax introduced recently only applies to business profits above Dh375,000 — leaving most residents and real estate investors unaffected. 'The government has made targeted efforts to ensure international investors feel supported,' Fahmy adds, 'from fast-track administrative services to broader integration into the country's economic ecosystem.' Second Homes with First-Class Appeal From panoramic waterfront villas to sleek branded residences and tech-enabled serviced apartments, international investors are embracing a new kind of convenience-led luxury. 'Waterfront homes are the most popular as beaches are rarely accessible in other countries all over the world,' says Vasilieva. 'Branded residences are also a top choice among second-home buyers because they come with high-end lifestyle facilities. Meanwhile, serviced apartments are appealing to clients looking for a hassle-free investment that delivers short-stay flexibility and rental income, all in a fully furnished, smart-home-equipped package.' Tabani notes a surge in demand for branded residences that provide 'hotel-like services and global prestige,' as well as waterfront and golf-view homes that blend lifestyle appeal with solid rental potential. 'Buyers want convenience, high-end amenities, strong resale value, and minimal hassle. Developers are responding by offering turnkey solutions, flexible payment plans, and features like co-working lounges, wellness spaces, concierge services, and even international school partnerships within communities,' he says. For Fahmy, the real differentiator lies in the art of hospitality. 'Second-home buyers are increasingly drawn to residences that offer more than just design or location. What they value most is ease, privacy, and a level of service that feels intuitive,' he explains. At Omoria, this ethos is embodied by the Japanese philosophy of Omotenashi — a concept rooted in thoughtful, anticipatory care. 'Technology and AI play a meaningful role in delivering this,' Fahmy adds. 'From learning personal preferences and automating climate settings to preparing the home before arrival, our systems are designed to enhance—not replace the human touch.' Aji agrees. 'Branded residences and turnkey apartments continue to perform well, but there's also growing interest in functional, mid-size homes that are ready for immediate use, especially among families and part-time residents,' she says. 'At Alma, we provide fully fitted interiors, built-in cabinetry, and flexible layouts that accommodate extended stays without the hassle of post-handover furnishing. The demand is for homes that feel 'lived in' from day one.' Top Picks for Savvy Buyers According to Vasilieva, family-centric gated communities are leading the pack. 'From a real estate perspective, several areas in Dubai are emerging as top choices for second-home buyers, driven by lifestyle preferences, infrastructure, and investment potential,' she says. 'Gated communities such as Dubai Hills Estate, Arabian Ranches, and Emirates Living are highly sought-after for their family-friendly environments, security, green spaces, and well-developed social infrastructure, all within a single, self-contained area.' For those craving an urban pulse, neighbourhoods like Dubai Marina, Downtown Dubai, and Dubai Creek Harbour remain firmly in demand. These communities offer waterfront living and close proximity to major business hubs, alongside vibrant dining and entertainment scenes. 'Mohammed Bin Rashid City (MBR City) is also gaining popularity among both families and investors,' Vasilieva adds, citing its central location, spacious layouts, and luxury-centric amenities. 'While traditional areas like Palm Jumeirah, Downtown Dubai, and Dubai Marina continue to see strong demand, we're now seeing heightened interest in new masterplan districts such as Dubai Islands,' Fahmy says. 'These emerging areas are being developed with a clear focus on integrated living, offering a blend of residential, lifestyle, cultural, and wellness experiences within a single ecosystem.' Aji highlights the growing traction in Dubailand, particularly areas like Liwan. 'While traditional hotspots like Downtown and the Palm remain popular with the luxury segment, we're seeing strong momentum in emerging areas like Liwan that are focusing on the mid-market sector,' she says. 'These communities offer more space, better value per square foot, and improved infrastructure, especially with the upcoming Dubai Metro Blue Line.' 'Home Away From Home' As international buyers seek flexible living arrangements that blend luxury, liveability, and long-term opportunity, the emirate is ticking all the right boxes. The trend of treating Dubai as a second home is not only growing — it's here to stay. Vasilieva believes Dubai is perfectly positioned to lead this global shift. 'Yes, the trend of treating Dubai as a second home is expected to continue growing over the next decade,' she says. 'Post-pandemic, the concept of a 'second home' has evolved, it's no longer just a vacation property, but a flexible living base that supports work, lifestyle, and long-term security.' The global pandemic was a turning point in how people view mobility and space. A second home today isn't just a luxury beachfront escape, it's a strategic base that supports remote work, family life, and a new sense of wellbeing. Dubai's unique combination of tax advantages, geographic accessibility, and high-quality lifestyle has helped solidify its place on the shortlist of international buyers. 'Dubai supports this evolution through flexible visa options, zero income tax, top-tier infrastructure, and political stability,' Vasilieva adds. 'Its role as a global aviation hub further cements its appeal.' For Aji, the shift is as much about mindset as it is about market conditions. 'The pandemic redefined what it means to have a second home — it's now a flexible base that supports work, family, and wellbeing,' she notes. 'Dubai is uniquely positioned to lead this shift thanks to its infrastructure, lifestyle ecosystem, and proactive policymaking.' Aji also observes a diversification in buyer interest. While luxury remains a strong pull, there's a marked increase in mid-market investments from global citizens seeking value and long-term liveability. 'Over the next decade, we expect the second-home trend to strengthen, particularly with investors looking beyond the usual hotspots. Challenges may come from global economic headwinds or oversupply in certain sub-markets, but Dubai's continued focus on liveability and investor-friendly regulation will likely keep it front and centre in the global second-home conversation.' Indeed, the idea of 'home' itself is evolving. Fahmy sees a growing shift in priorities. 'There's a growing emphasis on well-being, mobility, and quality of life, rather than simply owning property in major capital cities,' he explains. 'Dubai caters to all these evolving priorities. It offers world-class infrastructure, a globally connected location, and a lifestyle that blends cultural depth with modern convenience.' He adds that Dubai's appeal goes beyond hard metrics like safety and tax incentives. 'It's also about hospitality, experience, and design. The city's ambition — evident in strategic plans like Dubai 2040 and its consistent top rankings in safety reinforces its status as more than just a destination. Dubai is a long-term lifestyle choice.' Tabani credits much of the growth to the emirate's visa reforms, urban planning, and consistent investment in tourism and sustainability. 'Post-pandemic, the idea of a second home is no longer just a luxury — it's a flexible lifestyle solution. People want a base in a city that offers opportunity, safety, and quality of life,' says Tabani. 'Dubai ticks every box, emerging as a hybrid home city — ideal for business, leisure, or a seasonal lifestyle. It's not just a second home anymore… for many, it's becoming their preferred home away from home.'
Khaleej Times
15-06-2025
- Business
- Khaleej Times
Ras Al Khaimah widens branded hospitality space with new projects
Ras Al Khaimah (RAK), one of the fastest-growing emirates in the UAE, is emerging as a prime destination for luxury real estate investment, particularly in the branded residences segment. With its pristine coastline, scenic mountains, and investor-friendly policies, RAK is attracting global hospitality brands and high-net-worth individuals seeking exclusive lifestyle offerings. The emirate's real estate landscape is poised for a transformative shift with the highly anticipated launch of the UAE's first integrated gaming report at the Wynn on Al Marjan Island. This landmark development is expected to significantly boost tourism, elevate property values, and catalyse demand for high-end branded residences. As international interest surges, developers are aligning with luxury hotel brands to deliver curated living experiences that blend hospitality, design, and investment potential. This report explores the current market dynamics, key players, and the strategic impact of the casino on RAK's branded residential sector. The emirate's strategic approach to sustainable, cross-sector growth and strong economic and investment environment has been validated by international credit rating agency Fitch, which reaffirmed the rating at 'A+' with a stable outlook. Fitch estimated that Ras Al Khaimah achieved real GDP growth of 6.7% in 2024, an increase from 3.6% the previous year. RAK Government anticipates this strong momentum to continue, with average growth projected at 6.1% into 2026. As part of this trend, a number of global luxury developers are making a beeline to launch projects in the emirate. Dalands Holding, in collaboration with Marriott International and with the support of Marjan', the master developer of freehold property in Ras Al Khaimah, has announced the signing of W Residences Al Marjan Island. Set to open in Q4 2027, W Residences Al Marjan Island will be co-located with the W Al Marjan Island hotel, introducing a fusion of hospitality and elevated residential living to one of the UAE's most iconic beachfront destinations. This marks a new chapter in Dalands Holding's expansion into the UAE, building on its successful track record of developing boutique resorts and high-end residences. Abdulla Al Abdouli, CEO of Marjan, said: 'W Residences Al Marjan Island is a significant addition to our expanding portfolio of world-class developments on the island. We are pleased to welcome global brands like W Hotels and leading developers like Dalands Holding who have long-standing credibility as a hospitality-focused developer. This project will further enhance our position as a preferred destination for luxury living and investment, while enriching the cultural and economic landscape of Ras Al Khaimah.' Saurabh Gupta, CEO of Dalands Holding, said: 'We are delighted to introduce W Residences to Al Marjan Island; a development that embodies our vision for creating iconic destinations rooted in design, service, and a vibrant sense of place. Co-locating these 201 W Residences with W Al Marjan Island ensures an unmatched lifestyle offering, combining private, luxury living with access to exceptional hospitality services. These fully furnished residences, supported by a world-class hotel experience and direct access to the beach, is what sets this project apart.' The residences will feature a range of luxury homes, offering sweeping views and direct access to 130-metres-long beachfront. Each element of the development reflects the W Hotels brand, from interiors to the signature Whatever/Whenever© services. Planned amenities at the project These include an exclusive reception area, WET® infinity pool deck, a resident's lounge, the brand's signature FIT® fitness hub including a yoga studio, a beachside lounging zone, a mini 'Screening Room', and dedicated entertainment spaces for private events and parties. 'This launch marks an exciting milestone for Marriott International as we continue to grow our luxury residential footprint in the region,' said Sandeep Walia, Chief Operations Officer, Middle East & Luxury, Europe, Middle East & Africa – Marriott International. 'W Residences Al Marjan Island reflects the evolving expectations of today's luxury consumer — seeking more than just a home, but an immersive lifestyle destination. We are proud to continue our collaboration with Dalands Holding and Marjan to bring this bold new residential offering to life alongside W Al Marjan Island.'
Telegraph
19-05-2025
- Business
- Telegraph
You'd have to be mad to start a business in Labour's Britain
After many, many warnings it is now beginning to dawn on Labour's Treasury team that its assault on non-doms is continuing to cause the departure of thousands of high-net-worth individuals to other countries. We know this because Labour is now exploring what it can now do to try to entice very wealthy people to relocate to Britain or at least invest here. No other country except China is losing more millionaires and billionaires than Britain. It has meant a consequential loss of billions of pounds in UK tax revenues as well as the jobs and economic activity their spending helped to generate. But what about entrepreneurs seeking to build businesses here, be they British or foreign investors who once thought the UK was a great place to start up a business? How are they reacting to the policies of the Labour Government? What are their prospects and what does it mean for our economic prosperity? The news is not good. Labour's tax hikes have led to a significant increase in entrepreneurs voluntarily liquidating viable solvent businesses, reaching the highest level since the pandemic. There were 12,602 members' voluntary liquidations (MVLs) in the 2024-25 tax year – the highest since the pandemic – out of a total of 36,807 liquidations, driven primarily by recent tax policy changes, according to advisers. There is no single reason Labour is making life difficult for entrepreneurs – that's because there are at least six bad policy choices that Labour is responsible for. The message from Labour couldn't be clearer we don't care if British entrepreneurs find better opportunities in other countries. 1. There is the huge hike in capital gains tax (CGT) levied on entrepreneurs – up eight percentage points from 10pc to 18pc coming in April 2026. 2. Entrepreneurs also face the four percentage point increase in the CGT main rate from 20pc to 24pc which makes it more difficult for companies to raise capital by increasing their cost of capital. A study of cross-border transactions involving countries with differences in capital gains tax rates found that a 1pc point increase in the capital gains tax rate reduces the value of equity by around 0.3pc, suggesting capital gains taxes significantly raise firms' cost of capital. 3. These CGT hikes are just part of Labour's overall tax assault on high-net-worth individuals, – often pivotal investors in early-stage companies – which is driving many of them out of the UK. Indeed, evidence shows Labour's overall tax assault is already making departures happen. There is also the increase in business rates and other tax rises such as on stamp duty that are felt acutely by entrepreneurs. Another challenge is how an increase in CGT rates makes it more difficult for start-up companies to attract and retain skilled and capable staff, who seek the prospect of a decent capital gain to compensate for the poorer job security offered by start-ups. IR35 means that it's much more difficult to bring in freelancers on a flexible basis to meet short-term needs. 4. Then there's the hugely increased bill for employers' National Insurance contributions. For small businesses, cash flow is crucial, and any increase in employer costs eats into growth potential. Not only has the rate increased it also now starts at a far lower threshold, added to which the minimum wage has increased too. When added to penal rates of taxes on earnings, 62pc when you reach £100,000; and 47pc above £125,000, entrepreneurs have much less money available for investment. Serial entrepreneur and investor James Dooley has said: 'I've had to reevaluate hiring plans for the next year. Instead of taking on new full-time staff, I'll likely rely more on contractors or freelancers to control costs. For small tech companies like mine, these changes don't just nibble at the margins, they take a real bite out of hiring capacity.' 5. Then we have the imposition of inheritance tax (IHT) on family firms, which means that if an entrepreneur is successful he or she will have great difficulty in passing on the business to the next generation. Why start a company in Britain if you're going to have to bail out of the country later on to avoid a penal death tax hurting your family? There is already evidence that family shareholders are exiting now to avoid IHT as the liability remains for 10 years (up from seven) after departure. 6. And it's not just the tax rises that Labour has introduced, there's Angela Rayner's union-led Employment Rights Bill too, bringing changes around gig workers, redundancy costs and compensation that could raise the cost of hiring and slow down growth. Startups thrive on agility, and new laws and regulations that slow development down make entrepreneurs question if the effort is worth it. The threat to entrepreneurs in Britain is not imaginary but being felt already. A recent survey of 200 business owners, commissioned by Handelsbanken Wealth & Asset Management found nearly two out of five have either left the UK or are considering their imminent departure in the next two years. Likely destinations included Spain, which came top, followed by the United States, France – and Dubai, amongst others. In a survey by the Federation of Small Businesses the increase in minimum wage, new workers' rights and employers' National Insurance contributions caused a third of companies to expect they would cut back on staff while only one in 10 said they planned to take more people on. Business advisers report that opening conversations with their clients now often start with exploring the possibility of relocating abroad – and why not? Others say their clients are throwing in the towel, seeking voluntary liquidations of viable businesses so they can take their money and run. Put together, entrepreneurs face a perfect storm of less capital availability, higher taxes diminishing the business returns and personal rewards, higher overheads making profit harder, a treacly tide of new regulations slowing them down – and the probability that passing the successful business or its value on to the family comes at a high cost that does not have to be paid in other countries. The brutal truth is the UK is no country for entrepreneurs. It is becoming tougher all the time; the challenges are becoming harder to overcome, the risks of failure greater and the possibility of retaining any financial rewards are diminishing.
