Abu Dhabi, Dubai top cities for rich individuals, dynamic companies choosing to relocate: report
ALLAN JACOB (ABU DHABI)Abu Dhabi and Dubai figure prominently among the top five cities attracting both high net worth individuals (HNWIs) and companies seeking to relocate, with economic stability, good quality of life and tax incentives being the major attractions. The country's safe haven status clinches it for rich individuals and dynamic companies, according to real estate consultancy Savills.Dubai and Abu Dhabi are the top two choices for individuals seeking to relocate, while Abu Dhabi bags the fifth position for corporates moving places. Singapore, Zurich and Auckland follow Dubai and Abu Dhabi for individual relocations, the real estate consultancy said in its Dynamic Wealth Indices report. Only Singapore, Seoul, New York, and London are ahead of Abu Dhabi among companies moving offices.So why are these rich individuals and companies moving base? According to the survey, the UAE remains an oasis of calm, more so amid recent global economic disruptions and geopolitical tensions.The economic environment in the UAE is robust, with effective government policies, few taxes and other incentives. Quality-of-life factors are "increasingly influencing where high net worth individuals and footloose companies choose to locate," Savills said."Abu Dhabi's sovereign wealth has notably attracted connected family offices and global corporates. In turn, this has stimulated office demand – with new businesses requiring space – and the luxury residential market. Arguably, the push of fiscal policies of other countries has heightened the UAE's pull," said Rachael Kennerley, Director of Research at Savills Middle East.This means that Abu Dhabi has ranked in the top 5 for both, individuals and corporates looking to relocate, highlighting its range of benefits."The UAE is a particularly attractive option for HNWIs who bring their companies with them – it has a dynamic economy that's diversifying away from oil and attracting growing sums of corporate and sovereign wealth investment," a company statement said."Against an increasingly changeable geopolitical and economic backdrop, global wealth flows are evolving, as HNWIs and businesses adapt their decisions on where to locate," said Paul Tostevin, Director of Savills World Research."Traditional predictors of global wealth flows, such as government policies, taxes and incentives, and the presence of either innovative talent pools or existing communities of similar individuals, have always been key drivers of dynamic footloose companies and individuals, and will continue to play a major role, but a sense of place, and a high quality of living, are progressively the deciding factor when making location decisions."Real estate is booming in both Abu Dhabi and Dubai. Prime residential capital values in Dubai rose by 6.8% in 2024, with prime office values growing by 7% in Q4 alone. In 2024, the residential sector recorded unprecedented transaction volumes, with a 47% year-on-year increase. Of this, over 4,600 units priced above Dh10 million were transacted during the year, marking a 23% year on-year increase.
Savills said six of the top 12 locations feature in both the corporate and individual Dynamic Wealth Indices – highlighting how business and personal priorities can often overlap as businesses want to locate in destinations that can provide the necessary talent to sustain them, following skilled workers who tend to prioritise a better quality of life. While lifestyle factors appeal chiefly to the individual, the knock-on effects of creating talent clusters – or HNWIs bringing their businesses with them when they relocate - make them a magnet for corporate wealth, too.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
05-08-2025
- Zawya
Muscat's property market holds steady amid economic growth
MUSCAT: Oman's real estate market is showing signs of resilience and selective growth in Q2 2025, driven by solid economic fundamentals and consistent demand in premium segments, despite a notable drop in foreign direct investment (FDI) in real estate. According to Savills' Oman Property Market in Minutes – Q2 2025 report, the Sultanate of Oman's GDP reached RO 10.5 billion at the end of Q1 2025, marking a 4.7% year-on-year rise, fuelled by robust performance in the oil and gas sector and an 8% annual increase in the construction sector, which contributed RO 666 million. The report adds that inflation remained modest, at 0.82% as of June 2025. However, the positive macroeconomic indicators did not translate into a proportional rise in real estate FDI, which fell by 36.8% year-on-year to RO 653 million in Q1. Additionally, data from the Ministry of Housing and Urban Planning showed the total value of property transactions reached RO 1.36 billion by June 2025 — a 3.5% drop compared to the same period last year. While the number of contracts declined by 2.3%, the number of mortgages increased by 6.2%, suggesting greater reliance on home financing solutions, particularly in the mid-market segment. In the residential rental market, Al Mouj retained its dominance among 2-bedroom apartments, with rents averaging RO 709 per month. Qurum and Al Khuwair saw average rents decline to RO 393 (-13%) and RO 475 (-7%) respectively. Muscat Hills held steady at RO 350, indicating stable demand in that bracket. For larger properties, Al Mouj again led the 4-bedroom villa market with monthly rents rising to RO 1,400. Muscat Hills surpassed this with a 15% quarterly increase to RO 1,500 per month, pointing to its rising appeal. Madinat Sultan Qaboos remained stable at RO 1,000. In the office sector, Muscat's key business districts reported mixed rental trends. Rents in the CBD and Qurum held at RO 2.0 and RO 3.5 per sqm, respectively. However, Al Khuwair and Ghubrah witnessed declines to RO 4.5, reflecting intensified competition. Shatti Al Qurum bucked the trend with a modest increase to RO 6.3, cementing its reputation as a premium office location. Al Athaiba saw a slight dip to RO 5.5. Despite some soft spots, the overall market shows signs of stabilisation, underpinned by economic growth and targeted rental demand in high-end segments. 2025 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Arabian Post
05-08-2025
- Arabian Post
Abu Dhabi Home Prices Surge Amid Rising Investor Interest
The cost of purchasing homes in Abu Dhabi has surged, driven by a growing influx of high-net-worth individuals and a steady demand for prime residential properties. According to the latest data, residential real estate prices have soared by 17.3% in the second quarter of the year, marking a 31.3% increase since Q1 2020. This price hike has pushed the average price per square foot to AED 1,230, a clear sign of a market under intense pressure from high demand and low supply. The apartment sector has seen a notable rise in prices, growing by 17.3% compared to the previous year. Villas, however, have seen an even sharper increase, with values spiking by 42.3% since the first quarter of 2020. These figures indicate a robust demand for larger properties, likely driven by HNWIs seeking luxury accommodations in the capital. The factors driving this surge are complex, but they are largely influenced by the limited availability of new homes to meet the growing demand, further compounded by shifting economic and geopolitical dynamics. The influx of HNWIs into Abu Dhabi can be attributed to several factors, with the UAE offering a relatively stable and investor-friendly environment. The government's initiatives, such as long-term residence visas for investors and the implementation of more flexible policies, have made the region more attractive for foreign investors. This is particularly true for the real estate sector, which has become a key target for wealthy individuals looking for secure investments in an uncertain global landscape. ADVERTISEMENT The global economic environment has added to the demand for luxury properties in Abu Dhabi. The ongoing volatility in other markets has pushed investors towards the UAE, which is seen as a safe haven for wealth preservation. The region's strong infrastructure, political stability, and attractive lifestyle options have further solidified its position as a desirable location for HNWIs. Despite the robust demand, the supply of new homes has not kept pace. This has exacerbated the pressure on the housing market, with limited new developments unable to meet the growing demand for both apartments and villas. Developers are struggling to deliver enough housing units to accommodate the influx of new residents, especially in the high-end sector where demand is most intense. The imbalance between supply and demand has led to price hikes in multiple segments of the market, with the most pronounced increases seen in villas. These high-value properties have become especially sought after as more individuals and families opt for larger living spaces in response to shifting work patterns, such as remote working and hybrid arrangements. Villas, offering larger plots of land and private amenities, have become an attractive option for those looking to secure a higher standard of living in an increasingly competitive market. The lack of sufficient supply is also contributing to a growing sense of urgency among potential buyers. As prices continue to rise, individuals are increasingly looking to lock in properties before prices climb any further. This heightened demand, combined with the limited number of available units, is expected to keep prices high for the foreseeable future. While developers are working to accelerate the construction of new homes, it is unlikely that the market will see any substantial increase in supply in the short term. Further driving the demand for real estate in Abu Dhabi is the ongoing trend of diversification within the UAE's economy. As the government continues to implement reforms and push for a broader economic shift away from oil reliance, sectors like technology, finance, and tourism are seeing rapid growth. This has attracted a new wave of professionals and investors to the region, creating additional competition in the housing market. These individuals are typically in the higher-income brackets, further escalating demand for premium residential properties. ADVERTISEMENT The luxury real estate market, in particular, is experiencing a boom, with investors looking for properties that offer a combination of security, prestige, and high returns. In response to this growing demand, developers are increasingly focused on creating high-end, bespoke properties that cater to the tastes of HNWIs. These properties often feature cutting-edge designs, state-of-the-art facilities, and prime locations, ensuring that they meet the high standards of those who can afford them. Despite the price increases, Abu Dhabi remains one of the most attractive cities in the Middle East for real estate investment. The ongoing strength of the property market is a testament to the UAE's economic resilience and its appeal to global investors. As demand continues to outpace supply, the market is expected to remain strong, with prices likely to stay elevated in the near future.
Khaleej Times
04-08-2025
- Khaleej Times
Dubai luxury off-plan sales surge 240% in two years
Dubai luxury real estate market — units priced above Dh10 million — has witnessed a surge of 240 per cent since 2022, data showed on Monday. Savills' latest Prime Residential Report reveals a sharp rise in resale values across renovated legacy communities, where pricing now exceeds some of Dubai's most established ultra-prime locations. These movements highlight a structural evolution in buyer behaviour. Off-plan villas are gaining traction through early capital commitments in large-scale communities, while upgraded resale stock is achieving record prices in established neighbourhoods with mature infrastructure. In 2024, 69 per cent of all Dh10 million-plus transactions were off-plan. This marks a sharp shift from 2022, when just 952 off-plan deals occurred in this price segment. By the end of 2024, that number had reached 3,223, demonstrating a 240 per cent increase over two years. This momentum has continued into 2025. Market data shows that 3,731 properties priced above Dh10 million were sold in H1 2025, representing a 15 per cent increase over the full-year total of off-plan transactions in 2024. The sustained rise in high-value sales reflects growing investor confidence and reinforces Dubai's positioning as a leading global destination for prime residential capital. Villa-led launches in large-scale master plans are driving this trend. Buyers are entering early in the development cycle, drawn not only by the potential for long-term value but also by the lifestyle on offer. These communities typically feature expansive amenities such as polo and golf courses, sports and leisure facilities, and curated F&B options, which further add to their appeal. The capital entering this segment reflects greater confidence in developer delivery and long-term market stability. While ready sales above Dh10 million have remained steady at around 1,500 transactions per year, the acceleration in off-plan volumes confirms a shift in how capital is being deployed in Dubai's prime market. The stability in ready sales reflects longer ownership cycles among existing homeowners, as well as sustained demand from a growing base of high-net-worth individuals choosing to establish themselves in the city. Many purchasers are focused on asset quality, product positioning, and delivery track records over immediate availability. Renovated legacy communities are outperforming In parallel, strong demand is supporting premium pricing in mature communities with upgraded stock. Jumeirah Islands provides the clearest example. Originally completed in 2006, the community had just eight Dh10 million-plus transactions in 2021. In 2024, that figure reached 89. As of 2025 year-to-date, more than 90 per cent of all transactions within Jumeirah Islands have exceeded the Dh10 million mark, and over 40 per cent have crossed Dh20 million. The highest achieved rate in the community now stands at Dh6,375 per square foot. That figure surpasses comparable averages in Emirates Hills and nearly doubles pricing in many villa-led off-plan communities. This reflects the premium being paid for fully renovated, ready-to-occupy homes in established neighbourhoods with limited supply. Buyers targeting this segment are placing greater value on renovation quality, plot layout, and location maturity. Capital is being deployed with clear criteria around finish, privacy, and access to infrastructure. Dubai's prime demand is broadening Both off-plan and renovated resale activity are benefiting from a deeper pool of globally mobile buyers with varied objectives. While motivations differ, the consistent trend is capital being allocated toward high-quality products in locations that meet long-term lifestyle or investment criteria. 'Dubai is no longer a stopover market. Buyers entering the prime space today are globally mobile, long-term focused, and looking to anchor their wealth in a city that offers both quality of life and asset strength,' said Andrew Cummings, Head of Residential Agency at Savills Middle East. 'The sharp rise in Dh10 million-plus transactions speaks to a structural shift in demand that indicates global capital's attraction to Dubai Real Estate.' This shift is also influencing how developers design and launch new products, and how sellers in the secondary market prepare properties for listing. Layout optimisation, design consistency, and wellness elements are being prioritised across both segments. Branded residences strengthen apartment-led prime demand While villas dominate recent transaction growth, apartment sales still account for nearly 30 per cent of all Dh10 million-plus activity, with branded residences forming a significant share of that volume. Dubai is now the most active market globally for branded residential development, according to Savills' 2025 Branded Residences Middle East and Africa report. The city is home to more than 50 branded residential developments, both completed and under construction, ranging from standalone residences to full-service hotel partnerships. These include completed developments such as The Lana Residences – Dorchester Collection, Bvlgari Residences, and One&Only One Za'abeel, as well as upcoming projects like The Ritz-Carlton Residences, Six Senses Residences The Palm, and Four Seasons Private Residences DIFC. Many of these schemes are commanding prime and ultra-prime pricing, particularly along the waterfront and in central neighbourhoods such as Downtown Dubai, Palm Jumeirah and Dubai Marina. Branded residences are attracting both investors and end-users seeking a lock-and-leave lifestyle, professional management, and premium design consistency. These homes typically offer curated amenities, hotel-style services, and strong resale potential, with pricing in some schemes now exceeding Dh10,000 per square foot. With Dubai forecast to account for 40 per cent of all branded residential development across the Middle East and Africa by 2031, this segment is set to play an increasingly important role in shaping the future of the Dh10 million-plus apartment market. Strategic outlook for investors, developers, and owners Dubai's prime market now offers multiple strategic entry points. For those engaging in early-stage acquisition, off-plan villa communities continue to provide scale, pricing flexibility, and strong forward demand. For existing owners in established districts, capital invested in full renovations is resulting in valuations that match or exceed legacy trophy locations. Transaction volumes and pricing strength are rising together, and product diversity across the Dh10 million-plus bracket is widening. This reinforces Dubai's positioning as a liquid, resilient, and performance-driven market at the global prime level The current momentum is underpinned by product quality, planning visibility, and buyer alignment. These factors will continue to define the next phase of Dubai's prime residential market evolution.
