Dubai Remains a Top Destination for Wealthy Buyers Despite Rising Costs
Dubai continues to attract global high-net-worth individuals (HNWIs) despite rising living costs, according to the 2025 Global Wealth and Lifestyle Report by Bank Julius Baer & Co. Ltd.
The report analyzed the cost of living in 25 major global cities using the Julius Baer Lifestyle Index. It found that while prices in Dubai rose 4% for luxury goods and services, the city still offers better value compared to other top-tier financial hubs.
Dubai Ranks High in Global Wealth Index
Dubai ranked 12th globally and 6th regionally (EMEA) in the latest index. While this is a slight decline from its 7th global position in 2024, the city remains a highly competitive option for wealthy individuals and families seeking lifestyle, investment, and economic opportunity.
“Dubai has rebounded strongly post-Covid with a booming tourism sector and rising interest from global investors,” said Fahd Abdullah, Executive Director of Investment Advisory at Julius Baer Middle East.
Luxury Real Estate Demand Surges
One of the most notable trends is the 16% increase in property prices (USD terms) over the past year. Yet, Dubai real estate remains attractive due to relative affordability, strong capital appreciation, and low taxes.
Over 50% of wealthy Gulf residents surveyed spent more on Dubai real estate in the past 12 months.
58% plan to increase spending on residential property in the next year—the highest rate globally.
This makes Dubai one of the world’s most active luxury property markets, especially among Middle Eastern buyers.
Why Dubai Appeals to the Ultra-Wealthy
According to the report, low taxation, political and economic stability, and Dubai’s strategic location as a gateway between East and West are key drivers of sustained interest.
Additionally, the city blends modern business infrastructure with a luxury lifestyle—making it ideal for families, entrepreneurs, and remote investors alike.
Luxury Lifestyle and Spending Habits
The Julius Baer Lifestyle Survey also showed that HNWIs in the Middle East spend significantly on luxury products and services:
High-end smartphones
Designer clothing, handbags, and shoes
Luxury watches
Business and leisure travel within the region has also grown considerably over the last year.
Optimistic Investment Outlook
Wealthy individuals in the Middle East tend to have a risk-tolerant investment approach and remain bullish on growth.
“The Middle East, led by the GCC, continues to post strong fiscal surpluses and low inflation rates—making it one of the most stable emerging markets,” Abdullah added.
Conclusion
Dubai is well-positioned to remain the wealth hub of the Gulf and a magnet for luxury real estate investors, offering a rare combination of:
Strong returns
High-quality lifestyle
Strategic global connectivity
Its balance of affordability and luxury makes it a standout destination—even in an era of rising global costs.
