London, once a special destination for millionaires worldwide, is witnessing a significant shift in its appeal, as the affluent are flocking to Dubai in large numbers.
Recent years have seen a remarkable change, with the United Kingdom experiencing a loss of over 10,000 high-net-worth individuals (HNWIs) between 2017 and 2022, and an anticipated outflow of an additional 3,200 millionaires in 2023. In contrast, the United Arab Emirates (UAE) is balanced to hold approximately 4,500 millionaires this year, a figure significantly higher than the annual net influx of 1,000 high-net-worth individuals recorded prior to the pandemic.
The Brexit decision has been identified by experts as a key factor influencing this migration, particularly impacting professionals in finance, hedge funds, investment banking, law, and wealth management.
According to a study conducted by Housearch.com, the cost of living in Dubai is notably lower than in London, with a 27.5% difference in housing expenses and a 17.3% difference in grocery costs. For instance, to maintain a comfortable lifestyle in Dubai, one would require a minimum monthly budget of $5,500, whereas in London, it demands $7,200. Property prices and public transportation costs also favor Dubai as a more affordable option.
However, the decision on residence goes beyond financial considerations, encompassing factors such as customs, traditions, food, leisure activities, and climate.
As more millionaires depart London for Dubai, experts predict a substantial decline in London’s property prices. With an increasing number of landlords listing their properties for sale, there is potential for an 8 to 10% decline in 2023, and some experts even suggest a bolder perspective, projecting a 25% drop if elevated interest rates persist over an extended period, as outlined by Capital Economics, a London-based economic research firm.