Dubai is attracting increasing numbers of high net-worth individuals. After a period of correction, Knight Frank now predicts property sales will increase in 2017.
- The number of high net worth individuals based in the UAE increased by 70% over the last decade
- Knight Frank has ranked Dubai fourth in the world on its list of cities with the biggest inflow of high net-worth individuals
- The firm predicts an increase in the number of Dubai properties sold this year, after a period of reduced demand in recent years.
Dubai now ranks fourth on the list of cities with the biggest inflow of high net worth individuals (HNWIs), according to Knight Frank’s 2017 Wealth Report.
The report released today (March 2nd) also highlights the rapid growth of the Middle East’s population of ultra-high net worth individuals (UHNWIs).
Generally defined as those with investible assets of more than US$30 million, the number of UHNWIs in the Middle East increased by 48% between 2006 and 2016, to total 7,370 individuals with a combined wealth of US$810billion.
Of those 7,370 individuals, 1,510 are based in the UAE – a number that the report said has grown by 70% over the last decade, and is forecast to rise by another 60% by 2026.
Dubai also placed 16th on Knight Frank’s City Wealth Index, which scores cities worldwide based on four criteria – current wealth, future wealth, investment and connectivity.
Kate Everett-Allen, a Partner in Knight Frank’s Residential Research Team, said: “Dubai is now a truly global hub – two-thirds of the world can be reached within eight hours’ flying time from Dubai. Add to this the favourable climate, lifestyle, ease of doing business and favourable taxation [and] it’s easy to see why Dubai remains an attractive proposition for the global elite.”
Despite the increasing influx of HNWIs, the general economic climate over the past year has seen demand for luxury property in Dubai fall to significantly lower levels than in other parts of the world.
Despite the decline, Knight Frank said, more recent figures from Reidin suggest prime and residential prices in Dubai have remained flat since August 2016, indicating the residential market is reaching its cyclical trough.
Knight Frank does expect an increase in the number of properties sold this year and emphasise there is still demand at the top end of the market for well-designed high-specification homes.