According to a recent study, the city of Dubai has overtaken Paris as the favourite destination of the ultra-rich for the’purchase of property luxury. In this article, we will examine the reasons behind this change and its implications for the French property market.
The shifting rankings of the ultra-rich’s favourite cities
According to a survey carried out by Knight Frank, a firm specialising in property consultancy, Paris has lost its top spot to Dubai in the ranking of cities favoured by the ultra-rich for the purchase of luxury homes. This change can be attributed mainly to two factors: the more favourable tax policy in the United Arab Emirates, and the extensive infrastructure and business opportunities offered by this major city on the Arabian Peninsula.
Dubai, renowned for its flamboyant style and grandeur, now stands out as a decidedly «futuristic» city. In the space of two years, she has made an impressive leap of 46 places in the Barnes rankings.
This city is seeing a dramatic surge in property transactions, with prices rising by around 20 to 22% in 2023 alone.
Better returns on property investment in Dubai
One of the key factors that attract the high-net-worth buyers in Dubai is the low rate of tax on rental income and capital gains on property, compared with those in France. Indeed, taxes are much lower in Dubai than in Paris, making property investments far more profitable. The prospect of making substantial profits is therefore very attractive to high-net-worth individuals.
Tax rates on capital gains from property: In Dubai, there is no capital gains tax on property. In France, this rate is high, with a progressive tax rate of up to 40 % for the highest earners.
Taxes on rental income: The Rent received by a landlord in Dubai is not subject to tax. On the other hand, in In France, this income falls within the category of property income and is therefore taxable.
Modern and luxurious facilities
Dubai is renowned for its impressive infrastructure and the standard of living it offers. The city has a significant number of luxury residences and offers numerous investment opportunities for the ultra-rich, whether in the local economy or on its financial markets.
As a result, affluent buyers now prefer to look to Dubai for several reasons:
- A booming property market, offering a wide choice of luxury homes at attractive prices
- A stable and diversified economy that encourages foreign investment
- A wide range of luxury facilities and services (shopping centres, hotels, restaurants)
- A pleasant climate and a strategic geographical location between Europe, Africa and Asia.
The 2023 rankings:
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 – Istanbul, Turkey
Investing in property in Dubai
Would you like to investing in property in Dubai ? The’estate agency DRN Dubai Real Estate | Net you supports you throughout your investment process.
A dedicated team for each of its clients.
Please do not hesitate to contact us; a member of staff will be happy to answer any questions you may have.
Types of property available and the best areas in which to invest
Dubai offers a wide range of properties, ranging from luxury villas, high-end flats, affordable studio flats and commercial premises. Among the neighbourhoods that are currently the most attractive for property investment are:
- Downtown Dubai: The vibrant heart of the city, home to the famous Burj Khalifa and the Dubai Mall
- Palm Jumeirah: An artificial archipelago comprising luxury residences, hotels and beaches
- Dubai Marina: A trendy neighbourhood with its marina, skyscrapers and numerous restaurants
- Jumeirah Beach Residence (JBR): An area popular for its lively seafront and luxury blocks of flats
- Business Bay: A dynamic economic hub with modern infrastructure tailored to the needs of businesses
Investing in property in Dubai in 2024 therefore presents an opportunity not to be missed for investors wishing to capitalise on a dynamic and attractive market. Favourable tax conditions, strong economic growth and a constantly evolving property market are all reasons why this city is a must for those wishing to embark on a new property project.
