The UK Property Market is Under Threat As Thousands Of Millionaires Move To Dubai
London, once a popular destination for millionaires around the world, is losing its appeal as the rich now flock to Dubai.
There has been a remarkable shift in recent years: the UK lost more than 10,000 high-net-worth individuals (HNWIs) between 2017 and 2022, and a further 3,200 millionaires are expected to flee in 2023.
In contrast, the United Arab Emirates is expected to welcome around 4,500 millionaires this year, well above the annual net influx of 1,000 wealthy people recorded before the pandemic.
The Brexit Effect
Experts say the UK’s decision to leave the EU played a crucial role in this migration, particularly affecting financiers, hedge fund managers, investment bankers, lawyers, and asset managers.
A study by Housearch.com found that the cost of living in Dubai is much lower than in London, with a difference of 27.5% in housing costs and 17.3% in food expenses.
For example, a comfortable lifestyle in Dubai requires a minimum monthly budget of $5,500, while in London it is $7,200. Property prices and public transport costs are also cheaper in Dubai.
More Than Money
Although economic considerations are important, the choice of residence also depends on other factors such as customs, traditions, gastronomy, leisure activities, and climate.
As more millionaires leave London for Dubai, experts are predicting a significant drop in London property prices. As more homeowners put their properties up for sale, some experts say there is a possibility of an 8-10% decline in 2023 and a similar decline in 2024.
Capital Economics, a London-based economic research firm, took a bolder view, highlighting the potential for a 25% decline if high-interest rates continue for an extended period.
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