Global living costs for high-net-worth individuals (HNWIs) fell for the first time in the Julius Baer Global Wealth and Lifestyle Index, dropping 2% in US dollar terms, driven by a 3.4% decline in goods prices and a slight 0.2% fall in services. The 2025 report, released ahead of a potential wave of new US tariffs, signals shifting priorities among the wealthy amid slowing global consumption and geopolitical uncertainty.
Singapore remained the most expensive city for HNWIs. London moved up to second place, followed by Hong Kong in third. Dubai rose five places to seventh globally and fourth in EMEA, bolstered by price increases in big-ticket items such as cars (+13%) and residential property (+17%). Local currency prices in Dubai only rose 1% on average.
Across EMEA, cities dominated the top 10 rankings, with London, Monaco, Zurich and Dubai all advancing. Price movements in the region were generally moderate, with Paris seeing a 5% rise due to increased travel and hospitality costs, and London recording higher private education fees following new tax changes.
The report also noted shifts in HNWI preferences. There is a growing emphasis on health, longevity, and lifestyle-driven experiences over material purchases. Fine dining, travel, and wellness spending remained resilient, even as demand for luxury goods slowed. In the Middle East, real estate and equities were the most favoured asset classes among the wealthy, with Dubai seeing record property sales and continued millionaire migration.
Dubai International Airport handled 92.3 million passengers in 2024, the highest for international travel. The city’s real estate market rose 27% in value last year, and the number of millionaires living in Dubai has more than doubled over the past decade, according to Henley & Partners. The DIFC recorded a 25% increase in active companies in 2024.
APAC remained the most stable region in price terms, declining just 1%. Tokyo and Bangkok climbed six positions in the rankings, while Shanghai dropped from fourth to sixth.
The index also recorded steep global price declines in tech (-22.6%), with MacBooks leading the fall. Meanwhile, business class flights rose 18.2% due to supply constraints and demand, and private education costs rose 5.1%.
Wealth preservation has become increasingly important, particularly in North America and Europe. APAC and the Middle East continue to favour higher-risk, diversified investments aligned with personal values.
Julius Baer’s Rishabh Saksena noted that Gulf economies, particularly the UAE, remain resilient. Non-oil sectors in Abu Dhabi contributed over 55% of GDP in 2024. Dubai’s projected 2025 visitor numbers exceed 22 million, and its financial centres continue to attract private capital and global talent.
