The trifecta of a fluid geopolitical and economic environment; changing government policies, taxes and incentives; and quality-of-life factors, is increasingly influencing where high net worth individuals (HNWIs) and footloose companies choose to locate, says Savills.
The global real estate consultancy has launched the Savills Dynamic Wealth Indices to identify the cities that are performing well at attracting and developing wealth and investment from individuals and businesses – and highlights some key factors shaping their location decisions.
Savills says that personal tax incentives, existing high concentrations of HNWIs, and a good quality of life put the cities of Dubai and Abu Dhabi of the United Arab Emirates in the top two positions, followed by Singapore, Zurich and Auckland to make up the top five preferred locations for individuals looking to relocate.
Meanwhile, Singapore, Seoul, New York, London and Abu Dhabi take the top five places for corporate relocations based on their corporate tax and business environments, volumes of foreign direct investment, and economies and knowledge bases.
This means that Abu Dhabi has ranked in the top 5 for both, individuals and corporates looking to relocate, highlighting its range of benefits.
Commenting on the UAE capital’s performance, Rachael Kennerley, Director of Research at Savills Middle East says, “Abu Dhabi’s sovereign wealth has notably attracted connected family offices and global corporates. In turn, this has stimulated office demand – with new businesses requiring space – and the luxury residential market. Arguably, the push of fiscal policies of other countries has heightened the UAE’s pull.”
The UAE is a particularly attractive option for HNWIs who bring their companies with them – it has a dynamic economy that’s diversifying away from oil and attracting growing sums of corporate and sovereign wealth investment.
This has in turn boosted real estate transaction volumes and values. Prime residential capital values in Dubai rose by 6.8% in 2024, with prime office values growing by 7% in Q4 alone. In 2024, the residential sector recorded unprecedented transaction volumes, with a 47% year on-year increase. Of this, over 4,600 units priced above AED 10 million were transacted during the year, marking a 23% year on-year increase.
“Against an increasingly changeable geopolitical and economic backdrop, global wealth flows are evolving, as HNWIs and businesses adapt their decisions on where to locate, explains Paul Tostevin, Director of Savills World Research. “Traditional predictors of global wealth flows, such as government policies, taxes and incentives, and the presence of either innovative talent pools or existing communities of similar individuals, have always been key drivers of dynamic footloose companies and individuals, and will continue to play a major role, but a sense of place, and a high quality of living, are progressively the deciding factor when making location decisions.”
Savills says that six of the top 12 locations feature in both the corporate and individual Dynamic Wealth Indices – highlighting how business and personal priorities can often overlap as businesses want to locate in destinations that can provide the necessary talent to sustain them, following skilled workers who tend to prioritise a better quality of life. While lifestyle factors appeal chiefly to the individual, the knock-on effects of creating talent clusters – or HNWIs bringing their businesses with them when they relocate – make them a magnet for corporate wealth, too.