Despite a 12% year-on-year increase in residential rental prices and elevated grocery costs, demand for premium real estate and relocation to the UAE remains robust among international professionals and investors. The trend underscores the emirate's enduring appeal as a global hub for wealth and business.
- Dubai residential rentals up 12.3% YoY in 2025, with premium units exceeding AED 55,000/month
- Grocery basket costs rose 9.7% in 2025, reflecting broader inflationary pressure
- Over 38,000 new residence permits issued to non-residents in 2025, a 17% increase from 2024
- Luxury property sales (AED 10M+) rose 24% in 2025, driven by European, Indian, and East Asian buyers
- Emaar Properties reported AED 1.2 billion net profit in Q3 2025, up 18% YoY
- Zero personal income tax and Golden Visa program are key drivers of inbound movement
Dubai and Abu Dhabi continue to attract high-net-worth individuals despite a marked uptick in living expenses. Residential rental prices in Dubai’s affluent districts rose 12.3% in 2025, driven by sustained demand and limited supply of luxury apartments. Average monthly rents for a three-bedroom property in Downtown Dubai now exceed AED 55,000 (approximately $15,000), up from AED 48,000 in 2024. Grocery costs have also climbed, with the cost of a standard basket of goods rising by 9.7% over the same period, according to local market data. The persistence of relocation interest reflects the UAE’s competitive tax regime, including zero personal income tax and no capital gains tax, which offset higher living costs. Additionally, the government’s launch of 20 new free zones and expanded visa programs—such as the Golden Visa for investors and professionals—has further amplified inbound movement. In 2025, over 38,000 new residence permits were issued to non-residents, a 17% increase from the prior year. Market activity in luxury real estate remains strong. Sales of properties priced above AED 10 million rose by 24% compared to 2024, with 74% of buyers originating from Europe, India, and East Asia. Developers such as Emaar Properties and DAMAC Holdings reported record quarterly revenues, with Emaar’s Q3 2025 net profit increasing to AED 1.2 billion, up 18% year-on-year. The continued flow of capital and talent into the UAE suggests that economic incentives and infrastructure developments outweigh cost concerns for a growing segment of global high earners. As the country accelerates its ambitions to become a leading financial and innovation center in the Middle East, the balance between cost and opportunity remains tilted in its favor.