DUBAI — Dubai leapt to seventh place in a ranking of the most expensive cities for high-class living, overtaking Paris (13th place) and Zurich (14th place) this year, according to a report released Tuesday by Swiss banking corporation Julius Baer.
Dubai was the only Arab city that made the list of 25 cities assessed by the fourth edition of Julius Baer’s Global Wealth and Lifestyle Report 2023.
For the first time in the report’s history, the Europe and Middle East and Africa (EMEA) region was classified as the most affordable region in which to live well. European cities in particular dropped in the rankings.
What happened: Dubai ranked as the seventh most expensive city to live in and made the top 10 for the very first time in Julius Baer’s latest index.
The city rose seven positions from 14th place last year, making Dubai the third most expensive city within the EMEA region after London and Monaco. It was also the only EMEA city to rise in the rankings in 2023.
The lifestyle index evaluates 25 major cities based on 12 consumer goods and eight services used by high-net-worth individuals. These goods and services include residential properties, high-end restaurants, airline tickets and other factors.
Here are the 10 most expensive cities in 2023, according to Julius Baer’s lifestyle index:
1. Singapore
2. Shanghai
3. Hong Kong
4. London
5. New York
6. Monaco
7. Dubai
8. Taipei
9. Sao Paulo
10. Miami
Dubai’s significant rise means it is costing wealthy residents more to maintain their lifestyles. It has become the most expensive city in the EMEA region for eight of the 20 measured indicators, which include fashion and luxury accessories, according to Julius Baer. It is the second most expensive city for watches after Sao Paulo.
Increased rent and food costs demonstrate the rebound of Dubai’s hospitality and tourism sector since last year. Prime residential property rose by 44% in 2023, the highest increase recorded. Yet it remains relatively affordable compared to its global competitors, ranking 14th out of 25 cities. Fine dining prices shot up by a massive 186%.
Why it matters: Dubai’s rocket rise can be attributed in part to government policies that have attracted wealthy people and major companies. Government-created hubs in Dubai for business operations have testified to the idea of “build it and they will come.”
“It has become the place that companies and entrepreneurs seeking a base in the Middle East turn to and is popular with expats. Most recently, it has seen the relocation of large numbers of wealthy individuals, which has affected property prices and demand,” stated the index report.
Dubai’s real estate market saw a gainful year despite a global slowdown, benefiting from a series of reforms and geopolitical events, including the Russian invasion of Ukraine.
Last November, Dubai real estate surpassed its highest sales transactions since 2011, seeing more than 10,000 transactions worth $8.3 billion that month, according to Dubai-based real estate group Property Finder.
Dubai has more established financial hubs than places such as Zurich, according to the Baer report, helping it to draw the attraction of Asian companies.
After Brexit and economic difficulties such as the falling pound sterling, London dropped from second to fourth place on the index.
“Once seen as a model of good governance and stability, London now faces strong competition from burgeoning financial centers such as Dubai and Singapore,” the report stated.
Know more: The United Arab Emirates (UAE) attracted the highest net inflow of millionaires in the world in 2022, seeing the number of its residents with a net worth of $1 million or more increase by 5,200 last year, according to the Henley Private Wealth Migration Report 2023.