Luxury real estate: Dubai overtakes Paris as the city of the ultra-rich

According to a recent study, the city of Dubai has overtaken Paris as the preferred destination for the ultra-rich to acquire real estate.
acquisition of luxury
property. In this article, we look at the reasons for this change and the consequences for the French property market.

According to a survey conducted by Knight Frank, a specialist real estate consultancy, Paris has lost its top spot to Dubai in the ranking of cities preferred by the ultra-rich for the purchase of luxury residences. There are two main reasons for this change: the United Arab Emirates’ more advantageous tax policy, and the numerous business opportunities and infrastructures offered by the metropolis on the Arabian Peninsula.

Dubai, renowned for its ostentatious style and grandeur, now stands out as a resolutely “futuristic” city. In the space of two years, it has jumped an impressive 46 places in the Barnes rankings.

Real estate transactions in this metropolis are accelerating rapidly, with prices expected to rise by between 20% and 22% in 2023 alone.

One of the key factors attracting high-net-worth buyers to Dubai is the low tax rates on rental income and capital gains, compared with those in France. Indeed, taxes are much lower in Dubai than in Paris, making real estate investments far more profitable. The chances of making substantial profits are therefore very attractive for wealthy individuals.

Capital gains tax rate: In Dubai, there is no capital gains tax. In France, the rate is high, with progressive taxation of up to 40% for the highest incomes.
Taxes on rental income: Rental income received by an owner in Dubai is not subject to tax. In France, on the other hand, such income is classified as “revenu foncier” and is therefore taxable.

Dubai is renowned for its impressive infrastructure and standard of living. The city boasts a large number of luxury residences and offers numerous investment opportunities for the ultra-rich, both in the local economy and in its financial markets.

Today’s wealthy buyers prefer to turn to Dubai for several reasons:

• A growing real estate market, with a wide choice of luxury residences and attractive prices
• A stable, diversified economy that encourages foreign investment
• Numerous luxury amenities and services (shopping centers, hotels, restaurants)
• A pleasant climate and a strategic geographic location between Europe, Africa and Asia.

1 – Dubai, UAE
2 – Miami, United States
3 – New York, United States
4 – Madrid, Spain
5 – Paris, France
6 – London, United Kingdom
7 – Austin, United States
8 – Lisbon, Portugal
9 – Rome, Italy
10 – Istabul, Turkey

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Dubai offers a wide range of real estate, from luxurious villas and high-end apartments to affordable studios and commercial offices. Among the neighborhoods that are currently the most attractive for real estate investment are :

• Downtown Dubai: The vibrant heart of the city, with the famous Burj Khalifa and the Dubai Mall.
• Palm Jumeirah: Artificial archipelago of luxury residences, hotels and beaches
• Dubai Marina: Trendy district with its marina, skyscrapers and numerous restaurants.
• Jumeirah Beach Residence (JBR ): Popular area for its lively waterfront and luxury buildings
• Business Bay: A dynamic economic center with a modern business-friendly infrastructure

Investing in real estate in Dubai in 2024 represents an unmissable opportunity for investors wishing to benefit from a dynamic and attractive market. Advantageous taxation, strong economic growth and a constantly evolving real estate offer are just some of the reasons why this city is a must for those wishing to embark on a new real estate project.