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Arabian Business
4 hours ago
- Business
- Arabian Business
Dubai's housing strategy works for the 1% – and the 99%
On one side, a magnet for the ultra-wealthy, Dubai's luxury market dazzles with sky-high towers, private islands, and exclusive communities. On the other, a fast-growing segment of remote workers and digital nomads seek affordable, flexible living arrangements. Distinct yet intertwined, these two worlds shape the city's evolving real estate story in ways that reveal Dubai's unique position on the global stage. A tale of two markets A recent Knight Frank report reveals that Dubai held its title as the world's most active market for homes valued above $10 million for the second year running, recording 435 sales in the luxury segment throughout 2024—almost equal to the combined sales of London and New York. This segment values bespoke experiences, private pools, concierge services, and exclusive golf courses are staples that satisfy buyers craving distinction. Conversely, a new breed of residents has been reshaping demand with radically different priorities. Digital nomads and remote workers, often younger and more mobile, prize flexibility over extravagance. Co-living spaces, furnished apartments, and short-term leases dominate their choices. Dubai's government initiatives, such as the Virtual Working Program launched in 2021, have attracted thousands to settle in the city temporarily. Neighbourhoods like Dubai Internet City, Jumeirah Village Circle (JVC) and Al Quoz thrive as vibrant hubs offering affordable options combined with fast internet and easy access to co-working facilities. Shifting consumer needs redefine value The rise of the digital nomad signals a broader change in how people value real estate. For many in this cohort, location is less about proximity to business districts or landmarks and more about community, lifestyle, and adaptability. Their choices often emphasise shared amenities, social engagement, and urban vibrancy. This contrasts sharply with the ultra-wealthy, for whom exclusivity and seclusion form the essence of value. Developers and investors face a balancing act. Catering exclusively to luxury buyers risks overlooking a swelling demographic seeking attainable options. Meanwhile, focusing solely on affordability without quality and lifestyle risks alienating aspirational residents. Dubai's real estate market is bridging this divide, with mixed-use developments like City Walk and District 2020 integrating high-end residences alongside flexible workspaces and community-driven environments. Balancing exclusivity with inclusivity Dubai's real estate success depends on weaving inclusivity into a fabric historically defined by exclusivity. The city's strategic vision acknowledges that prosperity thrives through diversity. Fostering developments that welcome both the ultra-wealthy and the digital nomad, Dubai leverages the strengths of both markets. Take Bluewaters Island, a luxury destination featuring upscale residences, hotels, and entertainment, yet seamlessly connected to the broader city via public transport and pedestrian-friendly pathways. Such an integration invites a wider audience to participate in the lifestyle while preserving the allure of exclusivity. Meanwhile, districts like JVC cater to mid-income residents and remote workers with affordable villas and apartments that offer community spaces and access to retail and leisure amenities. This dual approach strengthens the city's resilience. It cushions market fluctuations by diversifying demand and fuels innovation as different resident profiles bring varied economic activity and cultural influences. The co-existence of exclusivity and inclusivity becomes a driver of sustainable growth rather than a source of conflict. A bridge between two worlds Few cities combine global luxury appeal with a progressive digital workforce as effectively as Dubai. Its geographic location, robust infrastructure, and open economy create a unique gateway connecting East and West, tradition and innovation, wealth and accessibility. The digital nomad trend, while global, finds fertile ground in Dubai due to supportive policies, a thriving startup ecosystem, and world-class amenities. In parallel, Dubai's luxury real estate maintains its position as a haven for capital and lifestyle investment amid shifting geopolitical and economic tides. Globally, cities like London and New York have witnessed similar dualities but struggle with affordability crises and fragmented policy responses. Dubai's ability to strategically nurture both ends of the spectrum offers a model for sustainable urban evolution. A new social contract The co-existence of billionaire playgrounds and digital nomad havens signals a new social contract where diverse aspirations are validated within one cityscape. Urban planners and developers must embrace this complexity as a strength. Designing spaces that encourage interaction between different socio-economic groups could spark innovation and foster empathy. The future belongs to cities that understand how to weave diverse lifestyles together in a smooth and balanced way.
Yahoo
a day ago
- Business
- Yahoo
London mansion sales collapse as non-doms flee Britain
Mansion sales in London have slumped as the Chancellor's tax raid dents the capital's appeal to wealthy buyers. Transactions involving London homes worth more than $10m (£7.5m) plummeted by 37pc year-on-year in the first three months of 2025, according to Knight Frank. The value of deals also dropped by 30pc to £592m. Separate data from LonRes showed a 15pc drop in sales of properties worth £5m or more. However, there was a 22pc leap in these homes being put on the market. Knight Frank blamed the slump on London's 'adverse taxation shifts'. It comes after Rachel Reeves scrapped non-dom status and began charging 40pc inheritance tax on global assets. Taxes on private schools fees have also increased. The changes have prompted many wealthy people to move out of Britain to escape the charges. Ms Reeves is now considering reversing her inheritance tax changes in an effort to stem the exodus. Liam Bailey, of Knight Frank, said: 'London has definitely been hit by much greater uncertainty around wealth taxation. The super-prime market hasn't stopped, but it is a lot tougher than it was.' He said non-doms were 'not the majority of buyers in this market segment', but there 'has been a degree of contagion through weaker sentiment'. Mr Bailey said: 'The key issue for the market is that the UK is just lacking a coherent narrative around where it wants to go in terms of attracting very mobile global wealth. 'London has massive strengths and attractions for this group – but if it is thought that it is good to have wealthy people in your country, it looks like we need a stronger plan from the Government to attract them. The competition from Italy, Dubai, the US and beyond is getting tougher.' Sales of properties worth $10m or more rose by 5.7pc in Dubai over the first three months of the year according to Knight Frank. The estate agency said its 'low tax environment continues to draw global capital'. Other global hotspots include New York and Palm Beach in south Florida. A lack of buyers in London is forcing wealthy sellers to offer steep discounts. LonRes said there were 45pc more discounts to mansion asking prices than there were last year. Magda Wierzycka, the millionaire founder of UK venture capital fund Braavos, described her struggle to offload a property in Kensington to The Telegraph on Wednesday. She said: 'I put my flat in Kensington on the market five months ago, but because so many like me are leaving there are hardly any buyers.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Gulf Insider
a day ago
- Business
- Gulf Insider
UAE's Dollar-Millionaires: Another 13,000 Join Resident Base In 2024, Says UBS
An additional 13,000 made it to the ranks of UAE's dollar millionaire resident base in 2024, according to the latest UBS 'Global wealth Report 2025', which is an increase of 5.8% from the year before. A good number of these newly created millionaire base in the UAE came about from re-locations, as has been the case for four years now. 'This year there has been some significant movement in the number of millionaires in many of parts of the world, both upwards and downwards,' according to the Swiss bank's findings. 'In 2024, Turkey stands out from the crowd thanks to an 8.4% increase in its number of dollar millionaires over 2023, equivalent to a boost of roughly 7,000 people in a single year. The UAE (had) a rise of 5.8% in millionaire numbers, thanks to approximately 13,000 new entrants in this category.' 'Having looked at long-term trends, we concluded that wealth is far from static.' In the UAE, that's been the case. Banking and property market sources talk about the multi-million dollar deals that have been shaping the UAE investment landscape. The property firm Knight Frank in a recent report points to the influx of Saudi, Indian, Chinese and UK high networth individuals committing sizable investments in the UAE. At some locations such as Jumeira Bay island, the deal sizes are getting bigger. There are an estimated 240,343 dollar-millionaires in the UAE with a combined $785 million. Saudi Arabia, according to UBS, has 339,029 dollar-millionaires, with a combined wealth holdings of $958.3 million. 'In an era marked by rapid economic shifts, increasing volatility and unprecedented market developments, understanding the trends and drivers of wealth creation is more crucial than ever,' said Robert Karofsky, co-President of UBS Global Wealth Management. In the UAE, around 62% of gross wealth is allocated to financial assets, and it's almost 58% in Saudi Arabia. Assets such as real estate as well as land make up about 48% of what the super-rich spend on in both the prime GCC markets. (Debt levels among these investors is close to 9% in the UAE and 'only 5.7% in Saudi Arabia, one of the lowest levels in our sample of 56 countries', according to UBS.) Niels Zilkens, Head Wealth Management Middle East at UBS Global Wealth Management, said: 'Saudi Arabia and the UAE are not only seeing rising millionaire numbers, but also meaningful gains in median wealth – especially in the UAE, where it rose over 23% since 2020. 'With a combined $122 billion in expected wealth transfers ahead, both markets are entering a pivotal phase of generational transition.'
Telegraph
a day ago
- Business
- Telegraph
London mansion sales collapse as non-doms flee Britain
Mansion sales in London have slumped as the Chancellor's tax raid dents the capital's appeal to wealthy buyers. Transactions involving London homes worth more than $10m (£7.5m) plummeted by 37pc year-on-year in the first three months of 2025, according to Knight Frank. The value of deals also dropped by 30pc to £592m. Separate data from LonRes showed a 15pc drop in sales of properties worth £5m or more. However, there was a 22pc leap in these homes being put on the market. Knight Frank blamed the slump on London's 'adverse taxation shifts'. It comes after Rachel Reeves scrapped non-dom status and began charging 40pc inheritance tax on global assets. Taxes on private schools fees have also increased. The changes have prompted many wealthy people to move out of Britain to escape the charges. Ms Reeves is now considering reversing her inheritance tax changes in an effort to stem the exodus. Liam Bailey, of Knight Frank, said: 'London has definitely been hit by much greater uncertainty around wealth taxation. The super-prime market hasn't stopped, but it is a lot tougher than it was.' He said non-doms were 'not the majority of buyers in this market segment', but there 'has been a degree of contagion through weaker sentiment'. Mr Bailey said: 'The key issue for the market is that the UK is just lacking a coherent narrative around where it wants to go in terms of attracting very mobile global wealth. 'London has massive strengths and attractions for this group – but if it is thought that it is good to have wealthy people in your country, it looks like we need a stronger plan from the Government to attract them. The competition from Italy, Dubai, the US and beyond is getting tougher.' Sales of properties worth $10m or more rose by 5.7pc in Dubai over the first three months of the year according to Knight Frank. The estate agency said its 'low tax environment continues to draw global capital'. Other global hotspots include New York and Palm Beach in south Florida. A lack of buyers in London is forcing wealthy sellers to offer steep discounts. LonRes said there were 45pc more discounts to mansion asking prices than there were last year. Magda Wierzycka, the millionaire founder of UK venture capital fund Braavos, described her struggle to offload a property in Kensington to The Telegraph on Wednesday. She said: 'I put my flat in Kensington on the market five months ago, but because so many like me are leaving there are hardly any buyers.'
Time of India
2 days ago
- Business
- Time of India
Every 30th adult now a millionare: UAE adds 13,000 dollar millionaires in 2024
In 2024, the UAE gained 13,000 millionaires, bringing the total to 240,000 with $785 billion in wealth/ Image: X The United Arab Emirates continued its meteoric rise on the global wealth map in 2024, adding approximately 13,000 new millionaires, according to the UBS Global Wealth Report 2025 , released Wednesday. This fresh wave of high-net-worth individuals (HNWIs) pushed the UAE's millionaire count to a striking 240,343, marking a 5.8% year-on-year increase. This growth makes the UAE the second-fastest-growing millionaire market, trailing only Türkiye, which experienced an 8.4% rise. A good number of these newly created millionaire base in the UAE came about from re-locations, as has been the case for four years now. Aaccording to the Swiss bank: 'In 2024, Turkey stands out from the crowd thanks to an 8.4% increase in its number of dollar millionaires over 2023, equivalent to a boost of roughly 7,000 people in a single year. The UAE (had) a rise of 5.8% in millionaire numbers, thanks to approximately 13,000 new entrants in this category.' To put it in human terms: According to Worldometers data, the UAE's population grew by 385,048 last year. While the total population is estimated at around 11 million, adults in their prime working years (25-54) number a substantial 7.28 million. With such a high concentration of wealth, effectively about one in every 30 adults or economically active individuals in the UAE is a millionaire. Where the Wealth Lives: UAE's $785 Billion in Private Hands The country's HNWIs now collectively control about $785 billion (Dh2.88 trillion) in wealth. Meanwhile, the average wealth per adult in the UAE currently stands at $147,663. According to the report: 62% of this wealth is held in financial assets, from equities and bonds to private investments. The remaining 48% resides in non-financial assets, primarily real estate and land, long considered pillars of wealth preservation in the Gulf. This concentration of wealth is clearly reflected in the UAE's property and investment markets. According to Knight Frank, a notable influx of high-net-worth individuals from Saudi Arabia, India, China, and the UK is driving larger, multi-million dollar deals, particularly in premium locations such as Jumeira Bay Island. Paul Donovan, Chief Economist at UBS Global Wealth Management, in a statement highlighted the broader implications of this capital accumulation: 'Wealth is not just an economic measure – it's a social and political force. As we navigate the fourth industrial revolution and rising public debt, the way wealth is distributed and transferred will shape opportunity, policy, and progress.' Generational Shifts: $19 Billion in Wealth Transfers Expected One particularly notable trend in the UAE is the coming wave of wealth transfers. UBS estimates that the country will see $19 billion (Dh70 billion) in intra- and inter-generational transfers. That figure represents 1.4% of the UAE's total private wealth. This includes wealth moving between: Spouses, such as from a widow or widower to their partner. Generations, especially from older family members to children or grandchildren. Globally, the report expects over $83 trillion to change hands in the next two to three decades, most significantly in the: United States: over $29 trillion Brazil: nearly $9 trillion Mainland China: more than $5 trillion Wealth Rankings: Where the UAE Stands Globally and Regionally Regionally, the UAE ranks second in the Middle East for millionaire population: Saudi Arabia: ~340,000 millionaires UAE: 240,343 Israel: 186,000 Globally, Switzerland maintained its position as the wealthiest nation by average adult wealth: Switzerland: $687,166 United States: $620,654 Hong Kong: $601,195 Luxembourg: $566,735 Australia: $516,640 By contrast, while the UAE's average per adult ($147,663) trails these top-tier economies, its pace of wealth creation—and wealth attraction, signals an upward trajectory. Inflow of Wealth: Why Millionaires Are Moving to the UAE Not all of the 13,000 new millionaires in the UAE were homegrown. According to Knight Frank , citing Henley & Partners data, the UAE attracted 7,200 millionaires from abroad in 2024, a 53% increase from the previous year. This surge in financial migration brings the total number of resident HNWIs to 130,500, as reported earlier. Industry experts suggest that favorable tax policies, political stability, and high-end infrastructure continue to make the UAE a magnet for mobile global wealth. A Global Picture: Wealth Growth Tilted to the Americas While the UAE experienced notable domestic gains, the global wealth landscape also saw overall expansion: Global private wealth rose by 4.6% in 2024, up from 4.2% in 2023. Most of the increase came from North America, where stable currencies and strong financial markets drove momentum. The Americas led with more than 11% of global wealth growth. In contrast, the Asia-Pacific and EMEA (Europe, Middle East, Africa) regions saw sluggish growth: below 3% and 0.5%, respectively.
