Despite their red-hot status and steep price increases, Dubai’s residential properties are relatively affordable compared to other cities in the region, stated the ‘Global Wealth & Lifestyle Report 2024’ published by Swiss wealth management firm Julius Baer Group LTD.

The report, which is designed to capture the ‘cost of living extremely well’, according to Head of Research Christian Gattiker-Ericsson, put Singapore as the world’s most expensive city to live extremely well in for the second year in a row, followed by Hong Kong and London.

The Julius Baer Lifestyle Index analyses the cost of living as a HNWI (high-net-worth-individual) across 25 key cities around the world by tracking the cost of premium goods and services.

Dubai fell from 7th to 12th place, but was termed as the most “robust and stable economic hubs in the Gulf.”

“With the world’s most active USD 10 million housing market in 2023, according to Knight Frank, both global and local demand is sky high,” the Global Wealth & Lifestyle Report 2024 stated.

The real estate sector accounted for 8.9% of the economy with prices in Dubai up 16% in USD terms, it added.

2023: Pakistanis remain among top 10 buyers of Dubai property, Indians top list

“Despite this boom and steep price increases, Dubai’s residential property remains relatively affordable compared to many cities in the region,” added the report.

Meanwhile, the report, citing respondents from the Middle East, said more than half of them had spent more on residential property in the past 12 months, and will be spending more in the months ahead – surpassing all other regions.

The Middle East also led the way in investor behavior (72% invested more), as HNWIs invested far more in the past 12 months than ever before.

Singapore tops ranking for most expensive city in the world for luxury living

This year’s report also finds that across Europe, Asia Pacific (APAC), Middle East, Latin America and North America, wealthy individuals are experiencing a new lifestyle boom, with demand surging for leisure travel, fine dining and luxury hotels.

While analysing consumption patterns, the report maintained that the Middle East focused on premium products such as designer clothing, jewellery, luxury watches and real estate while Europe and APAC focused on hotels and restaurants.

The Middle East and APAC also showed the highest growth in spending.

Dubai property outlook

Dubai’s infrastructure, fast growth, flourishing financial centre, large number of asset management firms along with the lack of income, capital gains and inheritance tax were cited as further drivers of this growth.

Its booming real estate scene is also likely to continue as investors from traditional markets like India, Pakistan and the Middle East are expected to join those from Australia, the UK, Europe, Turkey and others.