London's Loss, Dubai's Gain: Global Investors Shift to UAE Amid Tax Concerns
Global high-net-worth investors are moving from London to Dubai, influenced by tax concerns with the UK's new Labour government.
Dubai offers a high return on investment (RoI) in property markets, with yields between 6% and 8%.
Dubai's prime property market is attracting more investments than London's, especially in super-prime residential homes over $10 million.
UK's Beauchamp Estates reports a decrease in London's super-prime home sales, dropping from £829 million to £731 million in the first half of 2024.
Dubai provides better value and ROI per square foot compared to London, attracting buyers seeking larger homes for their investment.
The UAE's quality of life, safety, and connectivity continue to draw global investors.
Dubai's property market is characterized by diverse demand from regions such as India, China, the US, Europe, and Asia.
Investment trends include buying properties to let or for use as holiday homes, with some relocating families to the UAE.
Despite a global economic downturn, Dubai's property prices continue to rise, driven by sustained demand.
In a significant shift in global real estate dynamics, wealthy investors increasingly favour Dubai over London, driven by concerns over the new Labour government's fiscal policies in the UK. This trend marks a crucial pivot as Dubai's property market offers compelling RoI potentials, making it a more attractive option for investment.
A recent market study by Beauchamp Estates and commentary from industry experts indicate a clear transition of interest from London's prime central neighbourhoods to Dubai's luxury property sector. Notably, while London's prime property transactions have decreased, with sales of homes valued over £15 million dropping in the first half of 2024, Dubai has seen a significant uptick in transactions for homes exceeding $10 million.
Dubai's allure lies not just in its fiscal advantages but also in its lifestyle offerings. The UAE is known for its high quality of life, safety, and year-round sunshine, which continue to attract high-net-worth individuals (HNWIs). Furthermore, Dubai's cost per square foot remains highly competitive, and the tax-free returns ranging from 6-8% are unparalleled in today's global market.
Ghassan Khairallah, Director – Sales at Huspy, highlighted that with $1 million, investors could acquire larger homes in Dubai compared to London, providing more value for their money. This aspect is particularly appealing, allowing for more spacious living and better investment growth.
The current investment landscape in Dubai reflects a diverse buyer demographic, with significant interest from the Middle East, the US, India, China, and other regions. These investors are not just buying properties but are also considering relocating their families, driven by the stability and opportunities offered by the UAE.
As London grapples with the implications of new governmental policies, Dubai stands out as a beacon for global investors seeking security, growth, and profitability in real estate investments.