Europe is hit by economic and political crises and the majority of the affluent individuals are looking for a safer destination to invest and live. Dubai has become one of the most popular choices due to its booming real estate market, investor-friendly policies and luxury lifestyle. This phenomenon is having a major impact on the real estate market in Dubai as well as the UAE economy.
Why Do Rich Europeans Move?
All of the European countries are experiencing political polarization, fiscal uncertainty, and over-taxation. As such, more high-net-worth individuals (HNWls) are seeking to relocate.
Germany is a key example – A recent report found that 37% of German millionaires are thinking about moving. Concerns include:
- Immigration policies (47%)
- Rise of far-right politics (42%)
- Declining quality of life (31%)
- Higher taxes on wealth (30%)
- Unstable business environment (26%)
Most popular destinations among German billionaires are Canada, Australia, and the US.
Dubai is also one of their destinations, with 11% wanting to relocate to the UAE.
Dubai’s investor-friendly tax regime, security and standard of living are reasons why it has become a popular destination for people interested in retaining their wealth and living a life of luxury.
Dubai’s Real Estate Boom
The demand from European investors has driven property prices in Dubai up by 124% since 2020. The luxury market, in particular, is booming.
Developers are responding by building more high-end villas and mansions. Some of the most exclusive properties feature:
- Private beaches
- Home cinemas
- Spas
- Personalized luxury services
By the end of 2025, 9,000 new luxury villas will be completed, and 19,700 are planned for 2026. Some developments are even starting at $50 million and above solidifying Dubai’s position as a hub for the ultra-wealthy.
To attract more long-term investors, Dubai has the Golden Visa scheme that allows high-net-worth individuals, entrepreneurs and skilled professionals to gain residency easily. Compared to Switzerland or Singapore – Dubai provides fast-tracked residency with minimal bureaucracy, thereby becoming a preferred choice for international investors.
What Investors Should Consider
Even though Dubai provides good opportunities, investors need to assess the market well:
Property prices have appreciated, and thus the market condition needs to be studied before making large investments.
Keeping track of global tax
Promotion of policies and investment plans is required, since other countries may implement incentives to attract or keep wealthy individuals.