By Maria Morris | Founder & CEO at Maria Morris Real Estate
With the UK general election looming very large this week, it will be very interesting to see the impact on market dynamics, particularly its influence on the real estate market, both in the UK and further repercussions globally. Current sentiment and indications suggest an electoral landscape change for the current government, with post-election market trends typically expected to resume their previous patterns – the housing market being one of those.
In addition, there is significant concern among UK nationals regarding proposed changes to the non-dom tax status and offshore trusts, with the potential abolition of the non-dom tax status and adjustments to inheritance tax for offshore trusts, causing considerable unease among affected individuals and their advisers. The impact on tax revenue and broader economic sectors could be substantial if, as expected, these high-net-worth individuals decide to leave the UK in response to increased tax liability reforms.
As a result of this, we anticipate to see a substantial emigration of high-net-worth individuals out of the UK as affluent individuals increasingly choose to relocate overseas, marking a significant trend in global wealth migration for 2024, with the UAE and Dubai in particular, expected to benefit. The UAE has emerged as the top destination for millionaires this year, attracting 6,700 new high-net-worth individuals due to its zero-income tax policy, luxurious lifestyle, and attractive golden visa program (Source: Arabian Business).
British investors are increasingly driving Dubai’s property market boom, flocking to the UAE in record numbers to purchase properties and settle down, with the emirate’s economy remaining robust, fuelled by its diversified sectors such as tourism, trade, finance, and technology.
The surge in interest from UK nationals has surpassed traditionally dominant buyer groups such as Indians and Russians, underscoring Dubai’s rising appeal as a top investment hub, due to factors such as Dubai’s tax-friendly policies, offering significant advantages over the tax burdens faced in the UK and elsewhere.
Moreover, Dubai offers attractive rental yields compared to major UK cities, making it a preferred choice for investors seeking stable and potentially higher returns, which certainly contrasts with uncertainties in the UK exacerbated by the current political landscape.
Given the UAE’s tax-friendly policies, high rental yields, and flourishing economy, which contrast with uncertain political conditions back in the UK, it’s not hard to see why the UAE remains so alluring for British nationals.