Dubai has emerged as a standout global destination for high-net-worth individuals (HNWIs), rising five places to become the 7th most expensive city in the world and 4th in the EMEA region, despite only a marginal 1 percent increase in average local currency prices, according to Julius Baer’s Global Wealth and Lifestyle Report 2025.
The city is now a firm challenger to the traditional bastions of wealth in EMEA such as London, Monaco, and Zurich.
This year, Singapore retained its position as the most expensive city for HNWIs globally, followed by London, which moves into second place. Hong Kong completes the podium in third place. However, there are significant movements elsewhere, with Bangkok and Tokyo both rising six places and Dubai continuing its ascent to 7th place.
Prices decline amid global economic uncertainty
The Julius Baer Global Wealth and Lifestyle Report 2025 is published at a turning point for the global economy. Against a backdrop of slowing global consumption, rising geopolitical tensions and impending trade disputes, HNWIs are adapting their priorities. Although data collection was completed before the U.S. announced its new tariffs, the results still indicate a notable shift.
For the first time since its launch, the report has recorded a decline of 2 percent in U.S. dollar terms, a surprising development in a segment that has traditionally outpaced average consumer price growth. While services fell modestly by 0.2 percent, the prices of goods declined by a hefty 3.4 percent on average.
“In light of ongoing uncertainty, trade tensions, and tariffs, our findings represent the final moment ‘before’ the current situation, and next year’s Global Wealth and Lifestyle Report will likely provide a fascinating ‘after’ perspective,” said Christian Gattiker, head of research at Julius Baer.
Dubai transforms into a traditional wealth hub
EMEA cities once again feature prominently, now representing more than half of the global top ten. London leads the region, climbing to second place globally, while Monaco and Zurich both move up one position to fourth and fifth, respectively.
Dubai has risen five places to seventh, consolidating its position as a serious contender among traditional wealth hubs for HNWIs. Milan and Frankfurt held their positions, while Paris fell slightly in the rankings. Johannesburg remains at the bottom despite some price increases.
Price developments within EMEA have been moderate overall, with local currency prices remaining stable or even falling in cities such as Zurich. The region’s most notable price increase came in Paris, where rising travel and hospitality costs led to a 5 percent year-on-year rise. Private education costs in London also surged, driven by recent legislative changes.
In the Middle East, there was a high appetite for both experiential and material goods amongst wealthy residents. The region’s HNWI focused on hotels, designer men’s clothing, fine dining, smartphones and high-end women’s handbags. Given the breadth of economies in the region, there is likely to be notable divergence in their performances over the coming year. Moderate growth and a further decline in inflation are expected in the eurozone, while Dubai is predicted to see strong growth through this and next year due to tourism, trade and finance.
The report also revealed that Singapore remains the world’s most expensive city, underscoring APAC’s continued importance. APAC saw only slight price decreases of 1 percent on average across the region, making it the most stable of all of our regions this year. When it comes to rankings, Bangkok and Tokyo made the largest leaps, each climbing six places to 11th and 17th, respectively. Conversely, Shanghai dropped from fourth to sixth.
Dubai’s luxury market thrives amid global slowdown
Dubai’s rapid transformation into a world-class destination for luxury, business, and innovation is cementing its place among the world’s elite cities for HNWIs. While the global luxury market has softened amid geopolitical and economic turbulence, Dubai continues to thrive.
The report notes that while a significant number of prices in Dubai have remained stable in the last year, there has been a strong rise in big ticket items, such as cars (up 13 percent) and residential property (up 17 percent), which have impacted the overall cost of living for wealthy individuals.
In 2024, Dubai’s real estate market saw exceptional growth, with property sales values rising 27 percent year-on-year. This surge is just one reflection of the city’s increasing appeal as a long-term residence for high-net-worth individuals (HNWIs) and their families, many of whom have already relocated to Dubai.
Millionaire relocation to Dubai predicted to continue
The momentum of HNWIs relocating to Dubai, which began during the pandemic, is predicted to continue. The net inflow is destined to surpass that of all other countries, firmly positioning Dubai as a leading destination for the global elite. Increased residency applications over the last decade have also seen the number of millionaires living in Dubai rise by 102 percent, according to a report by Henley & Partners.
The city’s proposition is strengthened by its favorable tax environment, high quality of life, and forward-thinking residency programs such as the Golden and Entrepreneur visas. Another factor is Dubai’s position as a leading global financial center, with the Dubai International Finance Centre (DIFC) seeing unprecedented growth, with a 25 percent increase in active companies, operating there during 2024.
Dubai’s over-60 population to grow 29 percent by 2050
With strong economic growth predicted for 2025 and an ambitious ‘D33’ economic agenda underway to double the city’s economy by 2033, Dubai is continuously looking to the future. It is also positioning itself as a center for health, well-being and sustainable infrastructure development. Given the expected 29 percent population increase in over-60s by 2050, longevity ecosystems to sustain wellbeing at all stages of life are being developed to look after every aspect of residents’ health.
Efforts to be an innovative, forward-thinking city with elevated living standards are reaping dividends for Dubai. Its sprawling international airport saw a record 92.3 million passengers pass through in 2024, making it the world’s busiest for international travel. With an extensive upgrade to the city’s second airport underway, those numbers only look set to increase.
On its current upward trajectory, it may not be a surprise to see Dubai vying for a spot on the podium in the coming years. Though the cost of living well in the emirate may be swelling, along with the number of HNW residents, its attractiveness appears to remain undimmed.
