Dubai’s real estate market has become a magnet for global wealth, especially for London’s ultra-high-net-worth individuals (UHNWIs). In 2025, tax reforms and economic shifts in the UK have driven many to diversify into Dubai’s luxury properties. This article explores what percentage of London’s ultra-wealthy have invested in Dubai real estate, why they’re drawn to the emirate, and key trends shaping this migration. Backed by industry data, we uncover the scale of this wealth shift and offer insights for investors eyeing similar moves. Expect a significant portion of London’s elite to capitalise on Dubai’s high yields and tax benefits.
Who Are London’s Ultra-Wealthy
Ultra-high-net-worth individuals (UHNWIs) have investable assets of $30 million or more. In London, approximately 4,750 UHNWIs reside, with most holding assets between $30 million and $50 million. These individuals often diversify across global markets to protect wealth and maximize returns. Dubai, with its tax advantages and luxury appeal, has emerged as a top destination.
Scale of Investment in Dubai Property
Exact data on the percentage of London’s UHNWIs investing in Dubai property in 2025 is limited, but estimates suggest 15-20% have diversified into the emirate’s real estate. This figure stems from migration trends and transaction data. In 2024, nearly 1,000 UK HNWIs relocated to Dubai, with many UHNWIs among them. A 2025 Knight Frank report notes that 12% of global UHNWIs planned to purchase property in Dubai, with UK investors prominently featured due to tax changes. Assuming a conservative overlap, at least 15% of London’s UHNWIs likely hold Dubai properties, with the figure potentially higher for those with Middle Eastern ties.
Why Dubai Attracts London’s Ultra-Wealthy
Several factors drive this investment trend:
Tax Reforms in the UK
From April 2025, the UK’s non-domicile tax status ends, taxing all residents on global income. This shift, alongside inheritance tax changes, has pushed UHNWIs to seek tax-friendly jurisdictions. Dubai offers no personal income tax, capital gains tax, or inheritance tax, allowing investors to retain more wealth.
High Rental Yields
Dubai’s property market delivers 6-9% gross rental yields, far surpassing London’s 2-4%. For a $1 million property, Dubai generates $60,000-$90,000 annually in rental income. Prime areas like Palm Jumeirah and Downtown Dubai see median prices of $2.2 million, with 4-7% yearly appreciation.
Lifestyle and Stability
Dubai’s luxury lifestyle, with year-round sunshine, top-tier security, and world-class amenities, appeals to UHNWIs. The emirate’s economic stability, with 4.5% GDP growth projected for 2025, adds confidence. Projects like D-Villas at Jumeriah Estates and Trump Hotel & Tower offer exclusive residences tailored to elite tastes.
Golden Visa Incentives
Investing $545,000 in Dubai property grants a 10-year Golden Visa, offering residency and business privileges. This contrasts with London’s stricter visa rules, making Dubai a strategic base for global investors.
Key Areas for Investment
London’s UHNWIs favour specific Dubai neighbourhoods:
- Palm Jumeirah: Known for luxury villas, with prices up 126% since 2020.
- Downtown Dubai: Home to Burj Khalifa, with 37% of HNWIs targeting this area.
- Dubai Hills Estate: Offers premium amenities and strong ROI potential.
- Business Bay: Popular for branded residences like Bugatti Residences.
These areas combine high appreciation with rental demand, ideal for wealth preservation.
Dubai Market Trends in 2025
Dubai’s real estate market is booming. In Q1 2025, residential sales hit $32.7 billion, up 18% from 2024. Foreign investors, including 58% from countries like the UK, drive demand. The super-prime market ($25 million+) saw $2.3 billion in deals in 2024, doubling the prior year. With 76,000 new units expected in 2025, supply is tight, pushing prices higher.
Risks to Consider
Investing in Dubai isn’t without challenges:
- Market Overheating: Some analysts warn of short-term price surges, though long-term prospects remain strong.
- Liquidity: Luxury properties can take longer to sell, averaging 34 days on the market.
- Currency Risk: Dirham fluctuations against the pound could affect returns for UK investors.
Mitigate risks by working with firms like Emaar Properties for transparent transactions.
Strategies for UHNWIs
To maximise returns, London’s ultra-wealthy adopt these approaches:
- Off-Plan Investments: Properties like Emaar Beachfront offer flexible payment plans and high appreciation.
- Branded Residences: Projects like Four Seasons DIFC ensure premium value.
- Diversification: Combining Dubai properties with assets in Singapore or Switzerland reduces risk.
- Expert Guidance: Partner with advisors like ourselves for market insights.
Future Outlook
Dubai’s appeal will grow as global wealth shifts eastward. By 2026, the UAE expects 228,000 HNWIs, a 39% rise from 2021. London’s UHNWIs will likely increase their Dubai investments, with 20-25% potentially holding properties by 2027. Blockchain for title transparency and sustainable developments will further boost confidence.
Looking forward
In 2025, an estimated 15-20% of London’s ultra-wealthy have diversified into Dubai’s property market, driven by tax reforms, high yields, and lifestyle appeal. Prime areas like Palm Jumeirah and Downtown Dubai offer strong returns. With careful planning and expert advice, UHNWIs can capitalise on Dubai’s growth while navigating risks. This wealth migration marks Dubai as a global investment hub.
If you require factual, current and professional property guidance from a company that cares about your money as much as you do – then get in touch. Our team of specialists will give honest, clear and tangible advice that has your best interests at heart. Get in touch today for a free, no obligation consultation.
The ultimate community for global investors.
