There is no room More welcoming to high net worth people than Dubai. This is according to a study published by Savills, a real estate company, which ranked 30 cities in the world based on their attractiveness to people with a high level of wealth. The emirate attracts a large number of wealthy families, who are attracted by its tax advantages, noting that inheritance, wealth and capital gains taxes do not exist there. Likewise for him “Strong family infrastructure and security levels”they explain in the study.
“It is the place with the highest number of international schools of all the destinations included in our index, in terms of distance, resulting in long waiting lists as well. “More families are settling in this area.” They commented on the document that Bloomberg had access to. Global wealth recovered from the recession in 2022, with Asia-Pacific the fastest growing region. Last year alone, more than 680,000 new billionaires emerged In US dollars 1.2% additional. By 2029, the number is expected to increase by an additional five million people.
The business environment has become a crucial factor in deciding where to establish yourself. Dubai and New York It occupies the first two places in the classification, becoming the reference places for the wealthy thanks to its business-friendly environment. Its financial advantages and geopolitical stability. The UAE Golden Visa offers a low-tax residence permit for ten years in exchange for an investment Two million dirhams (about $544,550)Who convinced the global elite.
In its report, Savills highlights this change in the trend in which great wealth has begun to move away from large traditional financial centers towards technology cities. He gives the example of Shenzhen and Bangalore, which are witnessing demographic growth Triple number among millionaire segments of the population Throughout the past decade. Greater GDP growth in this region also contributed to this trend, benefiting Shanghai, Bangkok and Tokyo.
Inheritance tax is one of the most relevant factors in determining where wealthy people buy homes, causing some cities to fall behind in the rankings prepared by Savills. Although London ranks first in terms of conditions In terms of lifestyle, the British capital has been affected by the UK’s tax system, which has affected the demand for luxury housing in the city this year. “Tax changes had a moderate impact on attractiveness London among the elderly “Unlike jurisdictions like those in the Middle East, where they practically do not exist.”
All of this has led to a real estate boom in Dubai, which will soon be joined by one of the city’s richest clans. Sultan Al Ghurair The scion of the wealthy family that built the first modern shopping center in the emirate, he sets up a promotion company Real estate agency for building properties on family lands Selling homes before construction. Its first step into this sector will be a luxury tower designed by a Japanese architect.
Al Ghurair Group controls a vast real estate empire spanning thousands of homes. Offices, shopping malls, warehouses and hotelsIts patriarch, Abdullah, is one of the richest men in the UAE, with a net worth of $10.3 billion, according to the Bloomberg Billionaires Index. For decades, the family simply held and managed its assets, moving away from the model of developing and selling new homes that had made many in Dubai wealthy.
With this new project, Sultan launches into a market where prices have already risen by more than 70% since 2019, raising concern. Because of the risk of a real estate bubble. Over the past four years, this area has attracted dozens of foreign real estate developers from Lithuania, Russia, India and many other markets looking for land, although the new arrivals are met with higher-than-expected prices.
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