Latest news with #DominicVolek
Arabian Business
23-04-2025
- Business
- Arabian Business
UAE wealth growth drives record real estate transactions, says Knight Frank report
The UAE has experienced a 98 per cent increase in dollar millionaires over the past decade, establishing itself as the world's second-fastest growing wealth market and spurring unprecedented demand for high-value properties, a new report finds. The UAE attracted 7,200 millionaires in 2024 alone, building on previous influxes of 4,700 in 2023 and 5,200 in 2022, data from Henley & Partners shows. This strategic positioning has transformed the UAE from a regional financial centre into a global wealth hub, according to Knight Frank's Private Capital Report. UAE millionaire population doubles in decade, fuelling luxury property boom Faisal Durrani, Partner – Head of Research, MENA, said: 'In the Middle East, we are witnessing a defining era of wealth creation and real estate investment. The region's sustained economic growth, underpinned by ambitious national visions and strategic policy reforms, has reinforced its position as a global investment hub. 'Real estate remains at the heart of wealth strategies for UHNWIs, both as a store of value and as a means of wealth preservation. Across the MENA region, demand for prime and super-prime homes has reached unprecedented levels, fuelled by both local and international buyers seeking security, stability and long-term growth.' As of December 2024, the UAE hosted 130,500 dollar millionaires, ranking as the 14 th largest wealth market globally. The country is also home to 325 centi-millionaires (individuals with over $100 million in liquid investable wealth) and 28 billionaires – figures that have increased by 110 per cent over the decade. The largest proportion of incoming millionaires originated from India (31 per cent), followed by the Middle East (20 per cent), Russia & CIS (14 per cent), and the UK and Europe (12 per cent). Dominic Volek, Group Head of Private Clients at Henley & Partners, added: 'With a record-breaking 142,000 millionaires forecast to change their domicile globally in 2025, the UAE stands poised to capture a significant share of this wealth migration wave, strengthening its status as a wealth hub that has successfully transitioned from regional player to global force.' Dubai outpaces London, New York in ultra-prime home sales for second year This wealth migration has delivered substantial economic benefits. Dubai has led global markets for $10 million-plus home sales for two consecutive years, surpassing both London and New York with 435 such transactions in 2024, slightly above the 434 recorded in 2023. The fourth quarter alone saw 153 residential sales exceeding $10 million – an all-time record. The momentum continued into 2025, with 111 $10 million-plus sales in the first quarter, marking the highest Q1 result on record and a 5.7 per cent year-on-year increase from Q1 2024. ' Dubai's luxury residential market continues to defy gravity. Demand, particularly from international buyers, remains unrivalled on the global stage. In 2024 alone, Dubai not only led the world in the number of $10 million-plus home sales, but also topped total transaction value, with 435 deals worth $7.1 billion. It has firmly established itself as the global epicentre for ultra-luxury real estate – surpassing legacy markets like New York, London and Hong Kong. It's a staggering achievement for a market that, until recently, was considered relatively young,' Durrani explained. The Palm Jumeirah remains Dubai's premier ultra-prime location, recording 34 $10 million-plus transactions in Q1 2025 valued at $562.8 million. Emirates Hills followed with 15 sales totalling $356.7 million, including the quarter's most expensive deal: a six-bedroom villa sold for $106.3 million in January – representing a 1,635 per cent increase from its 2015 purchase price of $6.6 million. At the very top end, demand remains robust with 12 transactions over $25 million in Q1 2025, only slightly below the 15 deals in Q4 2024. This demand is creating supply pressures across price segments. In the AED2,000-3,000 psf range, new home delivery fell by 57 per cent year-on-year, while the AED3,000-5,000 psf segment saw a 39 per cent decline. The ultra-luxury sector faces the most severe shortfall, with just 16 villas delivered in the AED 5,000-plus psf category in 2024, following virtually no new villa deliveries in this segment in 2023. Nicholas Spencer, Partner – Private Capital and Family Enterprises, MENA, said: 'Dubai has cemented its position as a premier destination for HNWIs seeking real estate for personal use or for investment purposes, with a distinct focus by the global elite on making the city a permanent base or a second home. Our research revealed an astounding $4.4 billion earmarked for investment in Dubai's residential market by global HNWIs, a rise of 76 per cent on 2023, highlighting the seemingly limitless international demand from the super-rich for a home in the city.' HNWIs driving the market Last year, total residential transactions approached 170,000 deals worth approximately $115 billion, with $10 million-plus home sales accounting for about 6 per cent of this figure by total value. The appetite for Dubai real estate increases with wealth levels, rising from 28 per cent among those worth $2-5 million to 78 per cent for individuals with personal wealth exceeding $15 million. GCC-based HNWIs budget an average of $3.1 million for home purchases, while global HNWIs plan to spend an average of $36.5 million. Among ultra-high-net-worth individuals considering Dubai property, 25 per cent are prepared to spend $60-80 million, while 16 per cent would spend over $80 million. Family office growth accelerates wealth transfer across Middle East Knight Frank also noted increasing growth in family offices across the region. These wealth management vehicles have become critical to the financial landscape. Buthainah Albaity, Partner – Head of Private Capital and Family Enterprises, MENA, added: 'Countries across the region are in fierce competition to attract these offices, recognising their potential to drive investment, innovation and long-term economic sustainability.' UBS estimates $84 trillion will transfer between generations through these structures over the next two decades. In Saudi Arabia, many family businesses are transitioning from second to third-generation leadership, though numerous businesses have yet to experience a single succession. Dubai and Abu Dhabi have established the most advanced family office regulations in the region, attracting families both regionally and internationally. Their trust structures enable smooth wealth transfer, confidentiality and efficient cross-border asset management. India leads source countries for UAE's millionaire migration wave Knight Frank surveyed 506 HNWIs from nine Muslim-majority nations who collectively expressed willingness to commit $2 billion towards residential property purchases in Makkah and Madinah. The research found 84 per cent of global HNWIs interested in purchasing in Saudi Arabia, preferably in one of the Holy Cities, with 48 per cent looking to buy property in Makkah as a main residence. Qatar's residential market has also begun attracting attention from GCC nationals and expats. Knight Frank identified $537.5 million of private capital actively seeking residential real estate in Qatar, compared to total residential sales of $3.2 billion in Qatar during 2024. Egypt's real estate market remains highly sought after by GCC investors due to deep historic and cultural connections. The residential sector dominates preferences at 68 per cent, followed by branded residences (30 per cent) and retail (29 per cent), with 72 per cent citing purchase of a second or holiday home as their primary investment motive.
Zawya
23-04-2025
- Business
- Zawya
Knight Frank: Luxury home sales surge as world's wealthy flock to the Middle East
Dubai/UAE: The number of dollar millionaires in the UAE has soared by 98% over the past decade, making it the second-fastest growing wealth market worldwide and driving a surge in high-value real estate transactions, The Private Capital Report from global property consultancy Knight Frank has revealed. Faisal Durrani, Partner – Head of Research, MENA, explained: 'In the Middle East, we are witnessing a defining era of wealth creation and real estate investment. The region's sustained economic growth, underpinned by ambitious national visions and strategic policy reforms, has reinforced its position as a global investment hub. Real estate remains at the heart of wealth strategies for UHNWIs, both as a store of value and as a means of wealth preservation. Across the MENA region, demand for prime and super-prime homes has reached unprecedented levels, fuelled by both local and international buyers seeking security, stability and long-term growth.' High-net-worth individuals (HNWIs) from across the globe are being drawn to the UAE by its fiscal advantages, lifestyle appeal and visionary governance, the report said. In 2024 alone, the country welcomed 7,200 millionaires, building on an influx of 4,700 in 2023 and 5,200 in 2022, according to data from Henley & Partners. This influx follows a decade of strategic positioning that has transformed the UAE from a regional financial hub into a global wealth nexus, said Knight Frank. In a world characterised by political volatility and economic uncertainty, wealthy individuals are increasingly seeking geographic diversification – not merely as a safeguard but as a strategic imperative. The UAE, with Dubai at the forefront, has capitalised on this trend with remarkable acumen, positioning itself at the crossroads of wealth flows between East and West. As at the end of December 2024, the total number of dollar millionaires in the UAE stood at 130,500, securing its position as the 14th-largest wealth market globally. Perhaps even more telling is the presence of 325 resident centi-millionaires (individuals with US$ 100+ million in liquid investable wealth) and 28 billionaires – figures that have surged by 110% over the past decade. The greatest proportion of the UAE's inbound millionaires over the last decade came from India (31%), followed by the Middle East (20%), Russia & CIS (14%) and the UK & Europe (12%). Dominic Volek, Group Head of Private Clients at Henley & Partners, said: 'With a record-breaking 142,000 millionaires forecast to change their domicile globally in 2025, the UAE stands poised to capture a significant share of this wealth migration wave, strengthening its status as a wealth hub that has successfully transitioned from regional player to global force.' RECORD PRIME RESIDENTIAL SALES This wealth migration is delivering substantial economic dividends. Dubai has been the most active market for sales of US$ 10 million-plus homes for the past two years, eclipsing both London and New York. The emirate registered 435 home sales of US$ 10 million-plus last year, edging past the 434 transactions recorded in 2023. During Q4 alone, 153 residential sales in excess of US$ 10 million were completed – an all-time record. This momentum continued into 2025, with 111 US$ 10 million-plus sales in the first quarter. This marked the highest Q1 result on record and a 5.7% year-on-year increase from Q1 2024, putting the market on track for another record year in 2025. Durrani said: 'Dubai's luxury residential market continues to defy gravity. Demand, particularly from international buyers, remains unrivalled on the global stage. In 2024 alone, Dubai not only led the world in the number of US$ 10 million-plus home sales, but also topped total transaction value, with 435 deals worth US$ 7.1bn. It has firmly established itself as the global epicentre for ultra-luxury real estate – surpassing legacy markets like New York, London and Hong Kong. It's a staggering achievement for a market that, until recently, was considered relatively young.' The Palm Jumeirah remains Dubai's premier ultra-prime location, recording 34 US$ 10 million-plus transactions in Q1 2025 with a combined value of US$ 562.8 million. Emirates Hills followed in second place with 15 sales, totalling US$ 356.7 million. The community also saw the most expensive deal of the quarter: a six-bedroom villa that was sold for US$106.3 million in January, which was initially bought for US$ 6.6 million in 2015 – an extraordinary 1,635% price increase, averaging almost 34.6% annual growth. The growth rate in the mainstream market was 27.6% over the same period. At the very top end, demand remains remarkably consistent. There were 12 transactions over US$ 25 million in Q1 2025, only slightly below the 15 deals in Q4 2024. These figures reflect continued appetite from global UHNWIs seeking one-of-a-kind trophy homes. This level of demand is unsurprisingly putting pressure on supply. In the AED 2,000-3,000 psf range, which includes many prime and high-end properties, delivery of new homes fell by 57% year-on-year. Knight Frank observed a similar trend in the AED 3,000-5,000 psf segment, where supply was down 39%. The most pronounced shortfall, however, was in the ultra-luxury sector. In 2023, virtually no new villas were delivered in the AED 5,000-plus psf category. In 2024, just 16 villas entered the market at this price level, underscoring the scarcity of Dubai's most exclusive residential offerings. Nicholas Spencer, Partner – Private Capital and Family Enterprises, MENA said: 'Dubai has cemented its position as a premier destination for HNWI seeking real estate for personal use or for investment purposes, with a distinct focus by the global elite on making the city a permanent base or a second home. Our research revealed an astounding US$ 4.4bn earmarked for investment in Dubai's residential market by global HNWIs, a rise of 76% on 2023, highlighting the seemingly limitless international demand from the super-rich for a home in the city.' HNWIs DRIVING THE MARKET Last year, total residential transactional volumes approached a record 170,000 deals, worth around US$ 115bn, with US$ 10 million-plus home sales accounting for about 6% of this figure by total value of sales. The appetite for purchasing real estate in Dubai grew exponentially with levels of personal wealth, rising from 28% of those worth US$ 2-5 million, topping out at 78% for those with personal wealth in excess of US$ 15 million. The average budget for home purchases among GCC-based HNWIs was US$ 3.1 million, while global HNWIs plan to spend an average of US$ 36.5 million. Among ultra-high-net-worth-individuals considering a Dubai property purchase, 25% are prepared to spend US$ 60-80 million on a home in the city, while a further 16% would like to spend over US$ 80 million. GROWTH OF FAMILY OFFICES Alongside the rise of UHNWIs in the region, Knight Frank also noted a trend in the growth of family offices. These vehicles, which serve to manage wealth across generations, have become a critical part of the financial landscape. Buthainah Albaity, Partner – Head of Private Capital and Family Enterprises, MENA explained: 'Countries across the region are in fierce competition to attract these offices, recognising their potential to drive investment, innovation and long-term economic sustainability.' UBS estimates that through these structures US$ 84 trillion will shift from one generation to the next over the next two decades. In the Middle East, this transfer is already underway. For example, in Saudi Arabia, a significant proportion of family businesses are currently transitioning from second to third-generation leadership. In many cases, however, businesses have yet to experience a single succession, as they remain relatively young in terms of generational turnover. Dubai and Abu Dhabi have the most advanced family office regulations and are becoming very desirable locations not only for families from within the region, but also internationally. Trusts established in these jurisdictions enable smooth wealth transfer, confidentiality and efficient cross-border asset management. DEMAND ACROSS MENA Unlike Dubai, access to property markets across Saudi Arabia remains a complex undertaking for international investors; however, this is gradually changing. Knight Frank spoke with 506 HNWIs from nine Muslim-majority nations and found them collectively willing to commit US$ 2bn towards residential real estate purchases in the Holy Cities of Makkah and Madinah. The fact that 84% of global HNWIs are interested in purchasing in Saudi, preferably in one of the Holy Cities, underscores the depth of international buyer demand that is pooling on the sidelines, awaiting a suitable inlet. And the demand appears to be genuine, with 48% of those surveyed looking to purchase a property in Makkah for use as a main residence. Meanwhile, the Qatari residential market has also begun to court the attention of GCC nationals and GCC-based expats. Knight Frank's research identified US$ 537.5 million of private capital around the globe that is actively seeking residential real estate in Qatar. For context, the total value of all residential sales in Qatar during 2024 stood at US$ 3.2bn. Beyond the GCC, Egypt's real estate market is highly sought-after by GCC investors, not least because of deep rooted historic and cultural ties. Knight Frank found that the residential sector, at 68%, dominates investors' preferences, followed by branded residences (30%) and the retail sector (29%), with 72% of those surveyed citing the purchase of a second or holiday home as their primary motive for an investment in Egypt. GCC investors' interest in Egypt's second homes market underscores the country's appeal as a prime real estate destination. The combination of lifestyle benefits, potential for high rental yields, affordability and strong strategic ties to the GCC all add to the country's allure. Knight Frank expects that the strong interest from private GCC investors is likely to spur further developments and opportunities in the residential and holiday home sectors.
Khaleej Times
22-04-2025
- Business
- Khaleej Times
UAE attracts over 7,000 millionaires in 2024; 53 per cent increase from 2023
The UAE attracted 7,200 millionaires last year, an increase of 53 per cent over the previous year, taking the number of high net worth individuals (HNWIs) to 130,500 in the country, property consultancy Knight Frank said. Quoting data from Henley & Partners, it said the UAE witnessed higher inflows of millionaires in 2024 when compared to the previous two years, attracting 4,700 in 2023 and 5,200 in 2022. At the end of last year, there were 325 resident centi-millionaires with $100-plus million in investable wealth and 28 billionaires — figures that have surged by 110 per cent over the past decade. The majority — 31 per cent — of millionaires who relocated to the UAE came from India, followed by the Middle East (20 per cent), Russia & CIS (14 per cent) and the UK and Europe (12 per cent). It added that the UAE became the 14th-largest wealthiest market globally, Knight Frank said in the Private Capital Report released on Tuesday. Interestingly, the number of dollar millionaires in the UAE almost doubled over the past decade, making it the second-fastest growing wealth market worldwide. Due to uncertainty around the US tariff row and other geopolitical crises, the UAE has attracted a large number of millionaires and professionals due to its safe-haven status. 'With a record-breaking 142,000 millionaires forecast to change their domicile globally in 2025, the UAE stands poised to capture a significant share of this wealth migration wave, strengthening its status as a wealth hub that has successfully transitioned from regional player to global force,' said Dominic Volek, group head of private clients at Henley & Partners. Record prime property sales This strong inflow of millionaires has resulted in a massive boost to the local luxury property market who relocated to UAE, especially Dubai, due to safety and security, low tax rates and zero income tax. 'Real estate remains at the heart of wealth strategies for UHNWIs, both as a store of value and as a means of wealth preservation. Across the Mena region, demand for prime and super-prime homes has reached unprecedented levels, fuelled by both local and international buyers seeking security, stability and long-term growth,' said Faisal Durrani, partner and head of research, Mena, Knight Frank. Dubai has been the most active market for sales of $10 million-plus homes for the past two years, eclipsing both London and New York. The emirate registered 435 home sales of $10 million-plus last year, edging past the 434 transactions recorded in 2023. During Q4 alone, 153 residential sales in excess of US$ 10 million were completed – an all-time record. This momentum continued into 2025, with 111 $10 million-plus sales in the first quarter. This marked the highest Q1 result on record and a 5.7 per cent year-on-year increase from Q1 2024, putting the market on track for another record year in 2025. 'Dubai's luxury residential market continues to defy gravity. Demand, particularly from international buyers, remains unrivalled on the global stage. In 2024 alone, Dubai not only led the world in the number of $10 million-plus home sales but also topped total transaction value, with 435 deals worth $7.1 billion,' Durrani said. He added that the emirate surpassed legacy markets like New York, London and Hong Kong. The Palm Jumeirah remains Dubai's premier ultra-prime location, recording 34 $10 million-plus transactions in Q1 2025 with a combined value of $562.8 million. Emirates Hills followed in second place with 15 sales, totalling $356.7 million. 'Dubai has cemented its position as a premier destination for HNWI seeking real estate for personal use or for investment purposes, with a distinct focus by the global elite on making the city a permanent base or a second home,' said Nicholas Spencer, partner and private capital and family enterprises, Mena, Knight Frank.
Gulf Insider
10-04-2025
- Business
- Gulf Insider
Dubai is Now Home to Over 81,000 Millionaires
Dubai now boasts 81,200 resident millionaires, including 237 centi-millionaires and 20 billionaires, a new report finds. In the latest World's Wealthiest Cities Report 2025 , the emirate cemented its position as one of the world's most dynamic wealth hubs, climbing three places to 18th. These findings represent an impressive 102 per cent growth in the city's millionaire population between 2014 and 2024, making it one of only three cities to outpace the Bay Area's growth rate, alongside Chinese cities Shenzhen (142 per cent) and Hangzhou (108 per cent), according to the report, published in collaboration with New World Wealth. Dubai's future looks even more promising, with forecasts suggesting it will more than double its centi-millionaire population over the next decade (2025-2035), leading the anticipated high-growth centres worldwide alongside Abu Dhabi. This reflects the region's strategic pivot towards becoming a global financial centre, bolstered by its zero income and capital gains tax regime. 'The world's centi-millionaires are increasingly designing their geographical footprints with the same strategic care they apply to their investment portfolios — diversifying their presence across multiple jurisdictions to mitigate risk while maximising opportunity. Formal investment migration pathways create systematic entry routes into these rapidly developing regions, enabling forward-looking individuals to situate themselves and their family members within environments designed for both safeguarding and multiplying personal wealth,' Dominic Volek, Group Head of Private Clients at Henley & Partners said. While Dubai shows remarkable growth, New York maintains its position as the world's top city for millionaires with 384,500 high-net-worth individuals, including 818 centi-millionaires and 66 billionaires. The United States continues to dominate the overall rankings with 11 cities in the top 50. The Bay Area, which includes San Francisco and Silicon Valley, holds 2nd place with 342,400 millionaires and 82 billionaires—more than New York. The region has experienced 98 per cent growth in its millionaire population over the past decade. 'These urban centers share common DNA — robust legal frameworks, sophisticated financial infrastructure, and perhaps most critically, investment migration programs that welcome global talent and capital. Seven of the Top 10 wealthiest cities are in countries with residence by investment programs, creating direct pathways for entrepreneurs and investors seeking access to these wealth hubs,' Dr. Juerg Steffen, CEO of Henley & Partners added. Tokyo secured 3rd place with 292,300 millionaires, followed by Singapore in 4th with 242,400. Los Angeles (220,600 millionaires) has overtaken London, pushing the UK capital out of the top 5 to 6th place with 215,700 millionaires. London and Moscow are the only two cities in the top 50 with negative growth over the past decade, declining by 12 per cent and 25 per cent respectively. Moscow now ranks 40th with 30,000 millionaires. Paris (160,100 millionaires) held onto 7th place, while Hong Kong (154,900) moved up to 8th, pushing Sydney (152,900) down to 9th. Chicago (127,100) entered the top 10 for the first time, leapfrogging Beijing and Shanghai, which fell to 12th and 14th places respectively. 'Asia's top tech hub, Shenzhen is the base city for global tech giants Huawei, Tencent, BYD, DJI and ZTE and has experienced especially strong wealth growth over the past 20 years. It is now arguably the world's leading city in a number of key tech sub-sectors including computer hardware, electric vehicles, Wi-Fi dongles, mobile phones, flying drones, 5G, energy units and electronics,' Andrew Amoils, Head of Research at New World Wealth added. Monaco tops the list of most expensive cities, with prime apartment prices exceeding $38,800 per square metre, followed by New York ($27,500), Hong Kong ($26,300), and London ($24,000). Also read: Dubai Real Estate: Property Market Sees Strong Q1 2025 Growth, Shift Towards Homeownership
Arab News
09-04-2025
- Business
- Arab News
Riyadh, Jeddah among world's fastest-growing cities for millionaires
LONDON: Riyadh and Jeddah are among the fastest-growing cities in the world for millionaires, according to a report on global wealth. The Saudi hubs were both listed among the 30 cities in which the number of high-net-worth individuals has increased the most over the last 10 years. Riyadh had 65 percent more millionaires in 2024 than it did in 2014, according to the World's Wealthiest Cities Report 2025 by New World Wealth for Henley & Partners. The report showed more than 20,000 people with liquid investable wealth of $1 million or more are now based in the Saudi capital. This included 77 centi-millionaires and 11 billionaires. Jeddah saw an increase of more than 50 percent, with 10,400 millionaires now living there. The increase in wealthy individuals in the Kingdom's cities coincides with the extensive Vision 2030 economic reform program launched in 2016 by Crown Prince Mohammed bin Salman. Efforts to diversify the Kingdom's economy have included a push to attract international companies to base their regional headquarters in Riyadh. The other cities from the Middle East to be included in those 'fastest growing' were Dubai and Abu Dhabi. Dubai saw its millionaire population double over 10 years to make it the 18th wealthiest, according to the report. 'This Middle East wealth shift reflects the region's strategic pivot towards becoming global financial centers, combined with zero income and capital gains taxes,' the report said. Dominic Volek, from Henley & Partners, said: 'Middle Eastern cities, especially within the UAE and Saudi Arabia, have established themselves as pivotal connections in contemporary wealth networks. 'Such movements mirror larger political and financial developments, as affluence increasingly concentrates in stable, enterprise-friendly environments providing both protective measures and expansion opportunities.' Many of the other fastest-growing cities were based in the US, China, and India. There were also dramatic shifts in traditional global wealth hubs. London and Moscow were the only two cities to see a reduction in the number of millionaires since 2014. London has lost 12 percent of its high-net-worth residents with the drop blamed on high taxes, a slow tech sector and a struggling economy after the 2008 financial crisis and Brexit. The government last year ended the non-domiciled tax regime, which allowed wealthy foreigners living in the UK to avoid paying tax on many of their overseas assets. This has reportedly led to an exodus of millionaires from the UK. Shenzhen in China saw the fastest growth in the number of millionaires of all cities, thanks to its explosive growth from a fishing community to a global center for technology innovation. New York, San Francisco, Tokyo, and Singapore are considered the richest cities by the number of millionaires, with London dropping out of the top five.
