In the first half of the year, Dubai's luxury property sales soared to an impressive $844 million, thanks to the significant migration of high-net-worth individuals (HNWIs). The majority of these new millionaires in 2023 are anticipated to hail from India, with substantial numbers also coming from the U.K., Russia, Lebanon, Pakistan, Turkey, Egypt, South Africa, Nigeria, Hong Kong, and China.
Dubai's appeal to these wealthy individuals is attributed to the introduction of competitive laws, lucrative investment opportunities, and attractive funding incentives. According to the reports of a global firm specializing in global residence and citizenship planning, Dubai is now home to 210 centi-millionaires (individuals with a net worth exceeding $100 million) and 15 billionaires. Projections suggest that the city is well-poised to solidify its status as a global hub for luxury real estate.
This influx of millionaires, particularly from the U.K., is set to benefit the real estate market in the UAE significantly. The U.K. is poised to make substantial investments in the UAE's real estate industry, fueled by the sudden migration of its citizens. Experts from Abu Dhabi University, specializing in migration related to economic factors, highlight Dubai's strategic location as a gateway between the East and West, a factor that is not just attracting U.K. entrepreneurs but also establishing businesses in the UAE. This, in turn, is expected to boost the UAE economy with diverse investments, making Dubai a smart long-term investment choice.
Dubai leads the forecast for 2023 among 25 cities, with a prime residential price growth expected to reach 13.5%. The UAE's world-class healthcare system, low crime rate, and beautiful beaches contribute to its appeal as a safe haven for foreigners.
The upcoming year is anticipated to witness a surge in property purchases as more individuals aim to realize their dreams of homeownership and establish enduring connections within the vibrant landscape of the UAE.
Dubai has further incentivized investment through the amendments in the Golden Visa eligibility, a unique offering that sets it apart from other real estate markets. Investors making one or more off-plan property investments qualify for a 10-year Golden Visa. Additionally, investors may apply for a bank loan of AED 2 million for off-plan properties.
The Golden Visa simplifies the process for family members to obtain residence permits, with the age limit for sponsored children raised from 18 to 25. This move keeps more families together and attracts new talented individuals to settle and operate long-term businesses in Dubai, making it an attractive proposition for HNWIs looking for a secure and prosperous future.
Dubai's ability to adapt quickly on a global scale is evident, as seen in the shift from a Sunday-Thursday to a Monday-Friday work week. This aligns the UAE with the rest of the world, establishing it as a significant regional economic hub.
Another proof of Dubai's adaptability is the implementation of the federal Commercial Companies Law, effective in 2022, allowing 100% ownership of specific firms.
With a safe business environment, diverse experiences, and a multicultural center, Dubai and the UAE continue to attract HNWIs due to favorable regulations and promising investment prospects.
The UAE's top position for inflows underscores the nation's improved economy and reputation, thanks to forward-thinking government plans and flexible laws. As policies continue to enhance the country's position and capabilities, the trend of attracting global millionaires to Dubai will likely persist in the foreseeable future.
