PRESSR: Dubai climbs to seventh in Julius Baer’s Global Wealth and Lifestyle Report 2025

• The cost of living for wealthy residents rose notably due to strong increases in big-ticket items, including a 13% rise in car prices and a 17% increase in residential property values.
• High-net-worth individuals (HNWIs) in the Middle East continue to demonstrate a strong appetite for both experiential and material luxury, particularly in premium hotels, luxury menswear, and fine dining.
• Business and leisure travel surged in the region, with 53% and 47% of respondents respectively reporting increased activity.

The Julius Baer Lifestyle Index records an exceptional 2 per cent decline in prices in US dollar terms, reflecting shifting global consumption trends. While spending remains robust, HNWIs are increasingly prioritising longevity – both physical and financial – as a key driver of wealth and lifestyle decisions.

United Arab Emirates, Dubai – The Julius Baer Global Wealth and Lifestyle Report 2025 is published at a turning point for the global economy. Against a backdrop of slowing global consumption, rising geopolitical tensions and impending trade disputes, HNWIs (high-net-worth individuals) are adapting their priorities. Although data collection was completed before the US announced its new tariffs, our results still indicate a notable shift.

For the first time since its launch, the Julius Baer Global Wealth and Lifestyle Report has recorded a decline of 2 per cent in US dollar terms, a surprising development in a segment that has traditionally outpaced average consumer price growth. While services fell modestly by 0.2 per cent, the prices of goods declined by a hefty 3.4 per cent on average.

Christian Gattiker, Head of Research at Julius Baer, commented: “In light of ongoing uncertainty, trade tensions, and tariffs, our findings represent the final moment ‘before’ the current situation, and next year’s Global Wealth and Lifestyle Report will likely provide a fascinating ‘after’ perspective.”

The city ranking remains highly competitive. Singapore retains its position as the most expensive city for HNWIs globally, followed by London, which moves into second place. Hong Kong completes the podium in third place. However, there are significant movements elsewhere, with Bangkok and Tokyo both rising six places and Dubai continuing its ascent.

Regional findings

EMEA cities once again feature prominently, now representing more than half of the global top ten. London leads the region, climbing to second place globally, while Monaco and Zurich both move up one position to fourth and fifth respectively. Dubai has risen five places to seventh, consolidating its position as a serious contender among traditional wealth hubs. Milan and Frankfurt held their positions, while Paris fell slightly in the rankings. Johannesburg remains at the bottom despite some price increases.

Price developments within EMEA have been moderate overall, with local currency prices remaining stable or even falling in cities such as Zurich. The region’s most notable price increase came in Paris, where rising travel and hospitality costs led to a 5 per cent year-on-year rise. Private education costs in London also surged, driven by recent legislative changes.

In the Middle East, there was a high appetite for both experiential and material goods amongst wealthy residents. The region’s HNWI focused on hotels, designer men’s clothing, fine dining, smartphones and high-end women’s handbags.

Given the breadth of economies in the region, there is likely to be notable divergence in their performances over the coming year. Moderate growth and a further decline in inflation are expected in the eurozone, while Dubai is predicted to see strong growth through this and next year due to tourism, trade, and finance.

Singapore remains the world’s most expensive city, underscoring APAC’s continued importance. APAC saw only slight price decreases of 1 per cent on average across the region, making it the most stable of all of our regions this year. When it comes to rankings, Bangkok and Tokyo made the largest leaps, each climbing six places to 11th and 17th respectively. Conversely, Shanghai dropped from fourth to sixth.

Dubai on the rise

Dubai has emerged as a standout global destination for high-net-worth individuals (HNWIs), rising five places to become the 7th most expensive city in the world and 4th in the EMEA region, despite only a marginal 1 per cent increase in average local currency prices. The Emirate is now a firm challenger to the traditional bastions of wealth in EMEA such as London, Monaco, and Zurich.

Dubai’s rapid transformation into a world-class destination for luxury, business, and innovation is cementing its place among the world’s elite cities. While the global luxury market has softened amid geopolitical and economic turbulence, Dubai continues to thrive. The report notes that while a significant number of prices in Dubai have remained stable in the last year, there has been a strong rise in big ticket items, such as cars (up 13 per cent) and residential property (up 17 per cent), which have impacted the overall cost of living for wealthy individuals.

In 2024, Dubai’s real estate market saw exceptional growth, with property sales values rising 27% year-on-year. This surge is just one reflection of the city’s increasing appeal as a long-term residence for high-net-worth individuals (HNWIs) and their families—many of whom have already relocated to Dubai.

The momentum of millionaires relocating to Dubai, that began during the pandemic, is predicted to continue. The net inflow is destined to surpass that of all other countries, firmly positioning Dubai as a leading destination for the global elite. Increased residency applications over the last decade have also seen the number of millionaires living in Dubai rise by 102 per cent, according to a report by Henley & Partners.

The city's proposition is strengthened by its favourable tax environment, high quality of life, and forward-thinking residency programmes such as the Golden and Entrepreneur visas. Another factor is the Dubai’s position as a leading global financial centre, with the Dubai International Finance Centre (DIFC) seeing unprecedented growth, with a 25 per cent increase in active companies, operating there during 2024.

With strong economic growth predicted for 2025, and an ambitious ‘D33’ economic agenda under way to double the city’s economy by 2033, Dubai is continuously looking to the future. It is also positioning itself as a centre for health, wellbeing, and sustainable infrastructure development. Given the expected 29 per cent population increase in over-60s by 2050, longevity ecosystems to sustain wellbeing at all stages of life are being developed to look after every aspect of residents’ health.

Efforts to be an innovative, forward-thinking city with elevated living standards are reaping dividends for Dubai. Its sprawling international airport saw a record 92.3 million passengers pass through in 2024 - making it the world’s busiest for international travel; and with an extensive upgrade to the city’s second airport under way, those numbers only look set to increase. On its current upward trajectory, it may not be a surprise to see Dubai vying for a spot on the podium in coming years. Though the cost of living well in the emirate may be swelling, along with the number of HNW residents, its attractiveness appears to remain undimmed.

Rishabh Saksena, Co-Head Global Asset Class Specialists, Julius Baer, said: “The Gulf Cooperation Council (GCC) economies remain resilient amidst global macroeconomic uncertainty and regional geopolitical tensions. While oil-related growth has moderated, the broader outlook for 2025 is positive, supported by robust non-oil performance, strong fiscal buffers, and a continued commitment to economic reform.

In the UAE, the momentum remains strong. Abu Dhabi’s non-oil economy grew by 8.6 per cent in 2024, with non-oil sectors contributing over 55 per cent of GDP. Dubai, meanwhile, continues to lead the region’s services and tourism rebound, with visitor numbers projected to exceed 22 million in 2025. Dubai Airports, one of the world’s busiest hubs, is growing from strength to strength - serving as a gateway for global commerce and tourism and reinforcing the emirate’s connectivity.

The rise of financial centres such as the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) underscores the UAE’s growing role as a regional hub for investment, private capital, and global finance. These centres are increasingly at the forefront of innovation, particularly in the fields of digital assets, fintech, and AI—emerging as the new building blocks of diversified, future-ready economies.

The region is also experiencing a significant inflow of global talent and capital, as the GCC—and the UAE in particular—gain recognition as safe, stable jurisdictions for families and wealth preservation. Long-term residency programmes, advanced healthcare, high-quality education, and a pro-business environment are accelerating wealth migration and reinforcing the region’s appeal.

In summary, the Middle East - led by the GCC - is set to maintain strong fiscal and current account positions, even amidst external headwinds. Inflation remains among the lowest in emerging markets, while the region’s proactive approach to innovation, infrastructure, and investor confidence positions it as a key destination for growth in an increasingly fragmented global economy.”

Notable price developments in the index

The 2025 Index reflects diverging trends across categories. The sharpest price drop globally was observed in technology (-22.6 per cent), following price reductions in items such as MacBooks. By contrast, business class flights experienced the most significant price surge (+18.2 per cent), driven by changing airline business models, limited aircraft supply, and sustained demand for premium travel. Private education costs rose sharply as well (+5.1 per cent), particularly in London following the UK government’s VAT changes on private school fees. Watches saw a moderate increase of 5.6 per cent, reflecting continued demand for rare, investment-grade models.

Lifestyle survey findings

The Julius Baer Lifestyle Survey, now in its fourth year, reveals profound shifts in the attitudes and behaviours of HNWIs worldwide. Amid growing geopolitical tensions and economic uncertainty, affluent individuals are increasingly balancing the desire to enjoy life today with long-term planning for the future.

A key finding this year is the near-universal focus on longevity. Between 87 per cent (North America) and 100 per cent (APAC) of respondents report actively taking steps to extend their lifespan – from adopting healthier lifestyles to exploring cutting-edge interventions such as gene therapy and cryogenic treatments. Simultaneously, financial longevity has become an equally critical concern, with the majority of respondents indicating they would adjust their wealth strategies if faced with longer life expectancies.

Wealth creation remains the top priority globally, but wealth preservation has gained importance, especially in Europe and North America where a more conservative investment approach prevails. In contrast, HNWIs in APAC, the Middle East, and Latin America continue to embrace higher risk levels and diversify portfolios in line with personal values and emerging global trends. In the Middle East, real estate (18 per cent) and equities (13 per cent) emerged as the preferred asset classes for HNWIs in the last year.

Overall, the report also confirms the ongoing shift from material consumption towards experiences. While spending on luxury goods has softened, demand for fine dining, exclusive travel, and curated experiences remains robust. This reflects a broader evolution in how HNWIs define luxury – focusing increasingly on lifestyle, wellbeing, and meaningful experiences over possessions.

To download the Julius Baer Global Wealth and Lifestyle Report 2025, please visit:

www.juliusbaer.com/GWLR

Contacts

Prerna Agarwal

Afreen Aslam

Media Relations

About Julius Baer

Julius Baer is the leading Swiss wealth management group and a premium brand in this global sector, with a focus on servicing and advising sophisticated private clients. In all we do, we are inspired by our purpose: creating value beyond wealth. At the end of April 2025, assets under management amounted to CHF 467 billion. Bank Julius Baer & Co. Ltd., the renowned Swiss private bank with origins dating back to 1890, is the principal operating company of Julius Baer Group Ltd., whose shares are listed on the SIX Swiss Exchange (ticker symbol: BAER) and are included in the Swiss Leader Index (SLI), comprising the 30 largest and most liquid Swiss stocks.

Julius Baer is present in over 25 countries and around 60 locations. Headquartered in Zurich, we have offices in key locations including Bangkok, Dubai, Dublin, Frankfurt, Geneva, Hong Kong, London, Luxembourg, Madrid, Mexico City, Milan, Monaco, Mumbai, Santiago de Chile, Shanghai, Singapore, Tel Aviv, and Tokyo. Our client-centric approach, our objective advice based on the Julius Baer open product platform, our solid financial base, and our entrepreneurial management culture make us the international reference in wealth management.

For more information visit our website at www.juliusbaer.com

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.