Over 60% of millionaires choose Dubai as primary residence
A recent survey revealed that 66% of ultra-high net worth individuals (UHNWIs) who own property in Dubai choose to make it their primary residence, highlighting their preference for the emirate’s luxurious living standards.
According to the Residential Real Estate 2023 study conducted by Altrata in collaboration with Wealth-X and Realm, there are 830 UHNWIs, or individuals with assets worth $30 million or more (approximately Dh110 million), who own primary and secondary residences in Dubai. Out of these, 66.7% reside there as their main home, while 33.3% own secondary properties.
Among these UHNWIs, 9% are women, and approximately 90% are men. Around 60% of the wealthy individuals are self-made, 36.2% have a combination of inherited and self-made wealth, and 2.9% solely inherited their fortunes. In terms of assets, 1.4% of millionaires in Dubai own private aircraft, while 0.7% possess yachts.
In recent years, Dubai has attracted a significant number of millionaires who have relocated to the emirate, particularly during and after the pandemic.
According to the Henley Global Citizens Report from the previous year, the UAE is expected to attract 4,000 millionaires in 2022, surpassing countries like Australia, Singapore, Israel, Switzerland, the USA, Canada, New Zealand, the UK, and India.
Wealthy individuals often own multiple properties and have business interests spread across various geographic regions. The Residential Real Estate 2023 report by Altrata compares Dubai with Los Angeles and Monaco, which are also popular destinations for the ultra-rich.
Unlike homeowners in the other two cities, the majority of ultra-rich homeowners in Dubai are local residents.
“The interests and hobbies of these ultra-wealthy homeowners differ across the three cities. In Dubai, technology ranks highly, second only to sports and public speaking,” stated the report.
The research further noted that although the UAE’s economy is still largely reliant on the oil sector, significant efforts are being made to strengthen the nation’s reputation as a regional commercial hub. This is evident from the concentration of UHNW individuals in Dubai’s main industrial area. The most common industries among them include banking, finance, and industrial conglomerates, as well as structures and manufacturing.
Globally, New York holds the top position with an estimated UHNW population of nearly 21,700. London follows closely with 16,000 UHNW individuals, while Hong Kong secures the third spot with 15,175. The wealth market in China has experienced a substantial rise in the number of UHNWIs due to the high demand for second homes among the population, surpassing Singapore.
Paris ranks 13th with an estimated UHNW population of approximately 5,200.