The trend of millionaire migration is poised to become commonplace rather than an anomaly. Notably, forecasts suggest a 17% decline in the UK's millionaire population by 2028. China is anticipated to see approximately 15,200 millionaires leave in 2024, while the UK might lose nearly 9,500 millionaires to other investments. India, South Africa, and Nigeria are also expected to face significant millionaire exoduses in 2024, with projections indicating losses of around 4,300, 600, and 300 millionaires respectively.
The UAE is projected to maintain its position as the global leader in attracting wealth for the third year in a row, largely due to substantial inflows from high-net-worth individuals (HNWIs) from the UK, India, and Europe. Dubai ranks 20th in the World’s Wealthiest Cities Report 2023, hosting nearly 68,000 millionaires, over 200 centimillionaires, and 15 billionaires. The UAE is expected to welcome an additional 6,700 HNWIs by the end of 2024 and could see a growth of 30,000 millionaires in the next five years.
These statistics underscore a significant increase in wealth in the UAE, which grew at a Compound Annual Growth Rate (CAGR) of 16% between 2000 and 2010, and 4% between 2010 and 2023. Wealthy individuals are increasingly choosing Dubai over London and New York for establishing family offices and businesses, leading to unprecedented levels of foreign ownership in Dubai's housing market.
The UAE, particularly Dubai, with its robust and lucrative Return On Investment (ROI) opportunities from property investments, continues to attract high-net-worth investors worldwide. Dubai topped the list for selling homes worth over USD$10 million in 2023 and is estimated to have sold 80% more such homes than London. In Q1 2024, Dubai sold over 105 homes valued at more than USD$10 million, marking a 19% increase from the same period in 2023.
Foreign-owned residential real estate in the UAE surged by 20%, totaling $23 billion, from early 2020 to 2022. Foreign ownership in Dubai's housing market hit an estimated $160 billion in 2022. Investors from various countries, including the UK, India, Russia, Italy, Lebanon, Egypt, Turkey, France, China, and the UAE, are actively investing in the UAE’s property market.
Indian investors are significantly driving the luxury real estate boom in the UAE, benefiting from progressive visa reforms, long-term residency options, high ROI opportunities, luxury living, world-class amenities, strategic geographical positioning, and abundant global business prospects. UAE developers complement this demand by offering flexible payment plans, post-handover payment options, and partnerships with Indian banks to align with Indian buyer preferences.
Upscale apartments and villas in gated communities are particularly popular among Indian buyers due to high rental returns and the allure of a global lifestyle. It is estimated that the Dubai housing market earned around Dh16 billion from sales to Indians in 2023, doubling the Dh9 billion earned in 2021. Additionally, British nationals accounted for a significant 21.2% of all international property transactions in Dubai in 2023.
The data clearly suggests that the era of significant millionaire migration is set to persist. Only destinations that offer opportunities, safety, tax efficiency, an unparalleled lifestyle, and superior infrastructure will be favored. The UAE meets these criteria comprehensively and will need to further enhance its luxury real estate sector to match the growing influx of millionaire migrants.
