Dubai Overtakes New York as Most Attractive City for the Wealthy: Savills Report
Introduction: Dubai Becomes the World's Top City for the Wealthy
A recent survey conducted by real estate brokerage Savills reveals that Dubai has surpassed New York to become the most attractive city for the world's affluent population. The survey evaluated the appeal of 30 major global cities for high-net-worth individuals. This article will delve into the reasons why Dubai has achieved such a high ranking.
Why Dubai Attracts the Wealthy
Savills' report points out that Dubai is attracting a large number of wealthy migrants. The primary factors include:
Attractive Tax Incentives
One of Dubai's major appeals lies in its tax system.
- Inheritance tax
- Capital gains tax
- Wealth tax
None of these taxes are levied, creating a highly advantageous environment for wealthy individuals looking to efficiently preserve and grow their assets.
Comprehensive Education and Living Infrastructure
Dubai boasts a significant number of international schools from around the world. According to the report, their sheer quantity is unparalleled among the surveyed cities, providing great reassurance for families considering relocation. Many schools have long waiting lists for admission, indicating a growing influx of new families.
High Safety and Stability
Dubai prides itself on having one of the lowest crime rates globally. It also offers high geopolitical stability, creating an environment where the wealthy can conduct business and live with peace of mind.
Business-Friendly Environment and Golden Visa
Dubai has cultivated a pro-business environment, making it an ideal city for entrepreneurs and investors. Furthermore, the "Golden Visa" program offered by the United Arab Emirates (UAE) encourages wealthy individuals to relocate. This scheme grants a 10-year long-term residency permit to those who invest more than 2 million dirhams.
Trends in the Global Wealth Market
Savills' report also highlights interesting trends in the global wealth market.
Global Wealth Recovery
Global wealth, which saw a temporary dip in 2022, is now on a recovery path. Over 680,000 new U.S. dollar millionaires are expected to emerge in 2024, with an additional 5 million+ projected by 2029. The Asia-Pacific region, in particular, is experiencing the fastest growth.
Shift from Traditional Financial Centers
In recent years, the interest of the wealthy has been shifting from traditional financial centers to technology-driven "tech cities." Over the past decade, cities like Shenzhen in China and Bengaluru in India have seen triple-digit increases in their millionaire populations.
Conversely, London has seen a decline in demand for luxury real estate due to tax policies, such as inheritance tax. While it scores high on lifestyle appeal, its overall attractiveness ranking has fallen.
Conclusion
Savills' report demonstrates that a combination of factors – including tax advantages, comprehensive living infrastructure, high safety, and a business-friendly environment – has solidified Dubai's position as the most attractive city for the world's wealthy. With global wealth projected to continue growing, Dubai is expected to keep drawing in numerous affluent individuals and families.
Reference Article: According to Savills report, Dubai is the best global rich city, beating out New York - propertynews.ae
