Dubai Rises to 7th Most Expensive City for the Wealthy

Dubai has moved up five places to become the seventh most expensive city in the world for high-net-worth individuals (HNWIs), according to the Julius Baer Global Wealth and Lifestyle Report 2025. The ranking reflects a rise in luxury living costs, especially in real estate and big-ticket items, as more wealthy individuals settle in the city.

Real Estate Pushes Costs Up

The report highlighted a 17% jump in residential property prices in Dubai and a 13% increase in car prices, contributing to the city's higher cost of living for the wealthy. Despite only a 1% average price rise overall, the spike in high-end purchases like homes and cars has been enough to shift the city upward on the global index.

Beating Traditional Wealth Hubs

Dubai now ranks fourth in the EMEA region, ahead of cities like Zurich and Monaco in terms of lifestyle costs for the rich. It also beat out major global players like New York and Paris, trailing only behind Singapore, London, Hong Kong, Monaco, Zurich, and Shanghai.

One reason for the shift? Buyers get double the space for their money in Dubai compared to London, making it an appealing choice for luxury property investors.

Millionaire Growth Doubles in a Decade

Dubai’s status as a global wealth hub has only grown. In the past 10 years, the number of millionaires living in the emirate more than doubled. As of 2025, Dubai is home to 81,200 millionaires, 237 centimillionaires, and 20 billionaires. A year earlier, those numbers were at 72,500, 212, and 15, respectively.

The city’s appeal grew during the pandemic, as global investors relocated. That trend isn’t slowing down—experts predict Dubai will soon lead the world in net millionaire inflow.

High Demand for Luxury and Experiences

The Middle East’s wealthy population is showing a strong appetite for both luxury goods and experiences. The report noted top spending areas for HNWIs in the region include designer clothing, high-end hotels, fine dining, smartphones, and handbags.

Meanwhile, on a global scale, luxury spending dipped slightly. Prices for goods fell by 3.4%, while services saw a small 0.2% decrease. The biggest drops were in tech-related items, but business class flights, watches, and school fees all saw noticeable price hikes.

Wealthy Investors Shift Strategies Globally

The report also observed a global change in how the rich manage their money. With economic uncertainty and longer life expectancies becoming concerns, HNWIs are now more focused on long-term wealth strategies and financial longevity.

In the Middle East, real estate (18%) and equities (13%) remain the top investment choices. The region’s wealthy investors are also open to taking more risks, aligning their portfolios with personal values and emerging global trends.