A New Era of Wealth Migration

Millionaire migration is set to become the norm rather than the exception. Interestingly, it is projected that UK will witness 17 per cent plunge in its millionaire population by 2028. China is forecast to see an estimated 15,200 millionaires exit the country in 2024 while Britain may see almost 9,500 millionaires invest their wealth elsewhere in 2024. India is estimated to see the exit of 4,300 millionaires in 2024 along with South Africa and Nigeria who will experience a notable exodus of millionaires in 2024. Projections indicate that South Africa will lose approximately 600 HNWIs while Nigeria is likely to see 300 millionaires depart.

The UAE is set to retain its top spot as the world’s leading wealth magnet for the third consecutive year, bolstered by solid inflow from high-net-worth individuals (HNWIs) from UK, India, and Europe. Dubai occupies the 20th position as per the World’s Wealthiest Cities Report 2023 and is home to almost 68,000 millionaires, 200+ centimillionaires and 15 billionaires. The UAE is estimated to see an influx of 6,700 high net worth individuals by end of 2024 and projections expect the country may add 30,000 millionaires over the next five years.

The above figures reinforce a surge in wealth in the UAE which was reported to grow at a CAGR of 16 per cent between 2000 and 2010 and four per cent between 2010 and 2023. As wealthy migrants prefer Dubai over London and New York to set up family offices and businesses; foreign ownership in Dubai's housing market is reaching unprecedented heights.

The UAE and more specifically Dubai with its steady and high yielding Return On Investments (ROI) potentials from property driven investments is a huge draw for high-net worth investors from across the globe. Dubai cinched the top spot for selling homes worth more than USD$10 million in 2023 and is estimated to have sold 80 per cent more such homes than London. Selling more than 105 homes worth more than USD$10 million in Q1 2024, Dubai reported 19 per cent increase compared to the same period in 2023.

Diverse factors drawing Indians and global investors to Dubai skylines

Foreign-owned residential real estate in the UAE grew by 20 per cent — amounting to $23 billion — between the beginning of 2020 and early 2022. Foreign ownership in Dubai's housing market reached an estimated $160 billion in 2022. Diverse foreign nationals have demonstrated inclination to invest in the UAE’s property market. Leading from the front are British, Indian and Russian investors, closely followed by nationals from Italy, Lebanon, Egypt, Turkey, France, China, and the UAE.

— James Mathew is the CEO and Managing Partner at UHY James.

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