Dubai: Over 60% of millionaires prefer to make emirate their primary residence – News

The city has been a safe haven for ultra-high-net-worth individuals (UHNWIs) over the past few years, who have migrated in large numbers during and since the pandemic

A new report says that the majority (66%) of ultra-high net worth individuals (UHNWI) who brought property in Dubai make it their primary residence, reflecting millionaires’ preference for living and quality of life benefits in the emirate.

According to the Residential Real Estate 2023 report released by Altrata, in cooperation with Wealth-X and Realm, a total of 830 ultra-high-net-worth individuals, that is, millionaires with assets exceeding US$30 million (over 110 million dirhams), are first-hand real estate and second-hand housing. Of these, 66.7% were first-hand residents, while 33.3% were second-hand homeowners.

As many as 90% of them are men and 9% are female millionaires. The majority (60.9%) were self-made, 36.2% were inherited/self-made, and 2.9% only inherited wealth. Interestingly, 1.4% of Dubai millionaires own a private jet, while 0.7% own a yacht.

Over the past few years, Dubai has been a safe haven for millionaires who migrated to the emirate in large numbers during and after the pandemic.

A Henley Global Citizenship Report last year predicted that 4,000 millionaires would move to the UAE by 2022, more than big countries like Australia, Singapore, Israel, Switzerland, the US, Canada, New Zealand, the UK, India and others.

Wealthy individuals often own multiple residential and business interests in multiple locations. Altrata’s Residential Real Estate 2023 study compared Dubai to Los Angeles and Monaco, two other hotspots for the wealthy around the world.

The ultra-wealthy homeowners in Dubai are younger than those in the other two cities and are predominantly junior residents.

“In terms of the interests and hobbies of these ultra-wealthy, Dubai is the only one of the three cities that ranks high for technology, after sports and public speaking,” the report said.

It added that the oil sector remained a core driver of growth and wealth creation in the UAE, but key policies aimed at strengthening its credibility as a regional business hub were reflected in Dubai’s key industry focus for ultra-high-net-worth residents. While banking and finance are most common, they are much more represented in industrial groups, construction and manufacturing.

Globally, New York tops the list with more than 21,700 UHNWIs, followed by London with 16,000. Hong Kong followed with 15,175 in third place. Beijing has overtaken Singapore to enter the top 10 – the UHNWI footprint in China’s largest wealth market has grown steadily in recent years, driven by strong demand from UHNWI’s second home population.

Paris ranks 13th with around 5,200 UHNWIs.