Dubai is back in the top 10 of most expensive cities in the world for spending on luxury goods and is ready to give traditional hotspots such as London, Monaco and Zurich a run for their money.
The emirate has climbed five places to seventh spot, ahead of New York, Paris and Milan, in the annual report by Swiss wealth manager Julius Baer Group.
“Dubai is nipping at the heels of the bastion cities in the region for wealth and lifestyle,” the report said. “On its current upward trajectory, it may not be a surprise to see Dubai vying for a spot on our podium in coming years.”
Helping to push up the emirate’s ranking was a 12.5 percent increase in the price of high-end cars and a rise of over 17 percent in the price of luxury property.
Dubai’s prime market has grown from 469 transactions in 2020 to 4,760 in 2024, according to a report from real estate agency Savills.
In the first quarter of this year, over 1,300 homes changed hands for AED10 million ($2.7 million) or more. This was a rise of almost one third year on year.
In June, 15 homes were sold for more than AED50 million, according to real estate research company Valustrat.
The Julius Baer report said the price of champagne in Dubai had also increased.
Dubai’s luxury surge reflects broader momentum in the UAE, which is projected to attract a net inflow of 9,800 millionaires in 2025, more than any other country, according to Henley & Partners’ Private Wealth Migration Report.
For the first time since the Julius Baer survey was launched in 2020, prices for a basket of luxury goods – including cars, housing, business-class flights, hotels, fine wine, jewellery and smartphones – have fallen by 2 percent.
The report described this as a “quite exceptional” shift, given that high-end consumer prices have typically risen at double the pace of average inflation.
For a detailed perspective on the property market, visit: Dubai - VPI Residential Capital Values - June 2025
