PHOTO
Dubai is now the seventh most expensive city in the world for luxury living, having jumped seven places in a ranking based on report by Swiss private bank Julius Baer.
Dubai swapped places with Zurich, which is now in 14th place, as the seventh most expensive place to live for high-net-worth-individuals (HNWIs), The Global Wealth and Lifestyle Report revealed.
Julius Baer’s Lifestyle Index ranks the world’s 25 most expensive cities by analysing the cost of a series of purchases and services, from residential property to legal services, up to fast moving consumer goods including designer handbags.
Of the 25 global cities surveyed, Singapore was the most expensive, followed by Shanghai, Hong Kong, then London and New York.
While Dubai was at number seven, the remainder of the top 10 was made up of Monaco, Taipei in Taiwan, Sao Paulo in Brazil, which became the first Latin American city to enter the top 10, and Miami.
Paris was the tenth expensive city last year but has now fallen to 13th place.
For the first time since the report was started in 2011, Europe the Middle East and Africa (EMEA) is the most affordable region to live well, with European cities dropping down the rankings, Fawad Abdullah, executive director, investment advisory, Dubai, for Julius Baer, said.
Globally, prices have risen sharply in some categories, with car prices rising by 9.26%, whisky by 16.15%, wine by 17.23%, business class flights by 10.13% and hotel suites by 15.25%.
While in Asia the highest price increases were in hotel costs, which have risen by 39.1%, flights have risen by 32.9% and cars 25.1%.
In the EMEA region, the greatest price increases of categories surveyed were seen in wine, at 37.1%, whisky at 29.6% and a degustation dinner, which rose by 23.1%.
European economies have felt the impact of the weak euro, with Paris and Zurich falling out of the top 10, Abdullah said.
Meanwhile, spending priorities have shifted in the Middle East region, with 61% of HNWIs surveyed saying they had spent more on property in the past year than previously.
The wealthy in Dubai
Of Dubai’s future over the next decade, Abdullah said: “It’s going to be continuous growth.”
Dubai will continue to be a hub attracting the rich from all over the world and its growth will continue, Abdullah said.
Asked whether Dubai can expect to reach the top spot next year, he said: “I suspect Asia is going to pose a formidable barrier for the foreseeable future on account of the leg work they’ve already established. I suspect Dubai will go higher, but I would stop short of making the prediction that it will be first next year,” he concluded.
Almost 4,500 millionaires are expected to relocate to the UAE in 2023, making it the world's second most popular country for relocation among HNWIs, according to the Henley Private Wealth Migration Report 2023.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
