Millionaires leaving the UK as London loses its appeal

Millionaires leaving the UK as London loses its appeal

The UK has traditionally been seen as one of the world’s top destinations for migrating millionaires.

Indeed, for many years (from 1980 to 2010) it consistently attracted large numbers of wealthy people from Africa, Asia, CIS, Europe, and the Middle East.

However, this trend began to reverse around six years ago as more millionaires left the country and fewer came in.

A very new trend has now emerged which has seen Dubai becoming a major migration destination for high net worth individuals and especially young high earners from the UK.

This shift to the Middle East applies both to wealthy Britons and rich foreigners with London increasingly losing its appeal.

Notably, during the period from 2017 to 2022 the UK lost approximately 12,500 more high-net-worth individuals than it has gained through migration, and it is expected to lose another 3,200 millionaires to migration in 2023.

Conversely,a net inflow of approximately 4,500 millionaires is expected in the UAE this year — one of the highest on record. Pre-pandemic, the UAE traditionally saw net inflows of around 1,000 high-net-worths per year.

Most incoming millionaires in 2023 are expected to come from India, with large numbers also coming from the UK, Russia, Lebanon, Pakistan, Turkey, Egypt, South Africa, Nigeria, Hong Kong, and China.

Millionaires shun post-Brexit Britain

Numerous wealthy businesspeople have rebased to Europe over the past five years, possibly as a result of the decision in 2016 to take the UK out of the EU.

The bulk of those moving to the European Union work in the financial and professional services sector (namely, wealthy financiers, hedge fund managers, investment bankers, lawyers, and wealth managers).

The leading online property hub compared the cost of rent, groceries, transportation, and entertainment to find out whether the cost of living in Dubai is lower than in the British capital.

Overall, if comparing the cost of living in Dubai and London, Dubai is the clear winner, it found:

Housing is cheaper by 27.5%, groceries by 17.3%. According to its findings to rent an apartment and maintain a comfortable life in Dubai an expat needs a minimum of $5,500 a month. In London, the amount is $7,200.

However, when choosing a city to live in, considering lifestyle London and Dubai are different not only in prices, but in customs, traditions, food and activities.

One other big difference that perhaps should not be underestimated is, of course, climate.

Graham Cox, of specialist brokers, said the growing number of landlords putting their properties on the market could also force prices down sharply.


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