In 2024, the UAE topped global charts as the #1 destination for migrating millionaires, attracting over 6,700 high-net-worth individuals. But this migration isn’t just about palm trees and tax benefits, it’s part of a seismic capital shift. European family offices, once loyal to wealth hubs like London, Zurich, or Monaco, are increasingly turning their gaze, and money, towards Dubai and Abu Dhabi.

So what’s driving this reallocation, and why does it matter for the real estate market? Let’s unpack the key forces at play.

The Push from Europe: Low Yields, High Taxes, and Uncertainty

Across Europe, family offices are contending with a perfect storm:

• Low investment returns in traditional markets.
• Tightening regulations, including rent controls and bans on short-term rentals.
• Geopolitical headwinds not seen since the Cold War era.
• Proposals like Switzerland’s 50% inheritance tax or the UK’s end of non-domicile tax breaks are making long-term wealth planning far more complex, and far less rewarding.

These families are realizing they need to diversify not just assets, but jurisdictions.

The Pull to the UAE: A Wealth Magnet

In contrast, the UAE offers:

• Zero personal income, capital gains, and inheritance tax
• Over 140 double taxation agreements
• Business-friendly free zones like DIFC and ADGM
• Strategic location connecting Europe, Asia, and Africa
• A booming, high-growth real estate market

Dubai’s DIFC alone welcomed around 200 new family offices in the past year, bringing the total to over 800. Abu Dhabi’s ADGM isn’t far behind, now home to ultra-wealthy names like Ray Dalio and Leon Black.

Reshaping Real Estate Portfolios

Real estate has long been a cornerstone of family office investments—and this trend is accelerating in the UAE. Here’s why:

• Rental yields in Dubai still outperform most major cities in Europe.
• A young, fast-growing population ensures steady demand.
• Large-scale projects, from new metro lines to luxury developments, continue to elevate property values.
• The Palm Jumeirah, Dubai Hills, and Business Bay remain hotspots for family office investments.

While global family offices typically allocate about 10% of their portfolios to property, those based in the UAE boost this to 15% or more, underlining growing confidence in the local market.

Foundations of Wealth: Structuring in the UAE

Family offices in Dubai and Abu Dhabi benefit from flexible and confidential wealth structures:

• Foundations (especially under DIFC) allow families to manage global assets and ensure generational continuity.
• Trusts are used selectively but are recognized under UAE law.
• Restricted Scope Companies under ADGM offer enhanced privacy, shielding shareholders from public view.

Recent regulatory changes—like DIFC’s Family Arrangements Regulations 2023—mean single-family offices can operate with minimal oversight, allowing them to focus on managing and growing wealth.

A Look Ahead: $500 Billion in the Making

Middle Eastern family offices currently manage around $159 billion, but this could surge to $500 billion by the end of 2025, according to industry forecasts. While Europe still leads in total AUM, the growth rate in the UAE is unmatched.

This rapid capital inflow is set to:

• Boost demand for prime real estate.
• Expand the luxury and ultra-luxury segment.
• Drive institutional-grade developments in residential, commercial, and mixed-use spaces.

Final Thought: A Rare Alignment of Opportunity

For real estate investors, developers, and advisors, the UAE is no longer just a destination, it’s becoming a global capital for wealth management and property investment.

European family offices aren’t just diversifying into the UAE. They’re rooting themselves here, restructuring portfolios, establishing local entities, and investing in tangible assets that generate income and preserve legacy.

As this wave of wealth continues, one thing is clear: Real estate will be at the heart of it.

Whether you’re an investor, agent, or advisor, now is the time to understand how this shift can create opportunities—and position yourself at the center of one of the most dynamic financial migrations of our time.