Dubai has climbed five spots to become the 7th most expensive city in the world for high-net-worth individuals (HNWIs), according to the Julius Baer Global Wealth and Lifestyle Report 2025. The city’s growing appeal among the wealthy is largely driven by a significant rise in property and car prices, despite only a marginal 1% increase in local currency prices overall.

A Leading Luxury Destination in EMEA

Dubai is now the 4th most costly city in the EMEA region, following London, Monaco, and Zurich. The emirate is seen as a firm challenger to these traditional wealth hubs, offering a unique mix of luxury lifestyle, tax benefits, and high-quality real estate.

The report noted that buyers in Dubai get more than twice the square footage for their money compared to London — a value proposition that continues to attract the global elite.

Surging Costs in Property and Cars

While most goods and services in Dubai remained relatively stable over the past year, high-ticket items saw notable price increases:

• Residential property prices rose by 17%

• Car prices went up by 13%

These spikes have significantly impacted the overall cost of luxury living in the city.

Rapid Growth in Millionaire Population

Dubai’s appeal as a wealth hub is reflected in its rising number of wealthy residents. As of 2025:

• 81,200 millionaires live in Dubai

• 237 centimillionaires (wealth in the hundreds of millions)

• 20 billionaires call the emirate home

This marks a 102% increase in millionaires over the past decade, positioning Dubai as one of the fastest-growing wealth destinations in the world.

Outlook for the Future

The momentum of wealthy individuals relocating to Dubai—especially since the pandemic—shows no sign of slowing. The report forecasts that the net inflow of millionaires to Dubai will surpass all other countries, keeping the city firmly on an upward trajectory.

Despite increasing costs, the demand for luxury experiences and high-end goods remains strong, particularly in areas like fine dining, luxury hotels, designer fashion, and premium electronics.

Changing Wealth Trends

Globally, the report observed a 2% decline in the overall price basket of goods and services for the wealthy, mostly due to a fall in technology prices. However, business class flights, watches, and school fees have become more expensive.

HNWIs, especially in the Middle East, are increasingly balancing short-term enjoyment with long-term financial planning, prioritizing asset classes like real estate (18%) and equities (13%) for future security.

Conclusion

Dubai’s luxurious appeal and investor-friendly environment continue to attract the global elite. While the cost of living a premium lifestyle is rising, so is the city’s stature as a leading global hub for the ultra-wealthy.