Where are the world's most expensive cities for the super rich?

Europe, the Middle East and Africa now the most affordable region for HNWIs to live a luxury lifestyle, Julius Baer report says

Singapore is the world's most expensive city for the super rich, according to a report by private Swiss bank Julius Baer. Photo: Swapnil Bapat / Unsplash

Shanghai is second on the list. Photo: Zhou Xian / Unsplash

Third is Hong Kong. Photo: Ruslan Bardash / Unsplash

London is the fourth most expensive city, according to the report. Photo: Benjamin Davies / Unsplash

New York City is fifth. Photo: Andre Benz / Unsplash

In sixth place is Monaco. Photo: Julien Lanoy / Unsplash

Dubai is in seventh. Photo: Kent Tupas / Unsplash

Taipei is the eighth-most expensive city. Photo: Unsplash

Sao Paulo is ninth. Photo: Joao Tzanno / Unsplash

Miami takes 10th place. Photo: Antonio Cuellar / Unsplash

The Europe, Middle East and Africa region is the world’s most affordable for the super rich to live a luxury lifestyle despite persistently high global inflation and a strong US dollar, a report by Julius Baer has found.

Over the past 12 months, the price of all goods and services in the Julius Baer 2023 Global Wealth and Lifestyle index increased on average by 13 per cent in local currencies and by 6 per cent in US dollars, the Swiss private bank said on Tuesday.

Some of the biggest price increases occurred in high-demand, premium consumables, luxury cars and hospitality services, it said.

“Hotel suites, business-class flights, and fine dining all experienced significant price increases as the demand for travel and entertainment has surged,” it said.

“Across the board, price changes of both goods and services in the index show the impact of increased energy, raw material and staffing costs. Coupled with … inflation, currency fluctuations and ongoing supply chain disruption, these conditions mean that every industry, business and consumer is feeling the effects on their purchasing power.”

The report compiled an index using a basket of consumer goods and services – conducted between November 2022 and March this year – that represent discretionary purchases by high-net-worth individuals (HNWIs), including watches, luxury handbags, business-class airfares and property, and analysed prices in 25 cities around the world.

Global economic uncertainty – compounded by the Russia-Ukraine war, a supply chain crunch and a cost-of-living crisis – caused inflation around the world to rise to record levels in 2022.

As the US Federal Reserve raised interest rates to rein in inflation, investors seeking a safe haven drove the US dollar to a 20-year high in 2022 and caused the euro to drop below parity with the world's reserve currency for the first time in about two decades.

“With this backdrop, and the enduring influences of geopolitical and market uncertainty, wealthy individuals are adapting their consumption and lifestyle habits both to make hay while the sun shines and to brace for any future shocks,” Christian Gattiker, head of research at Julius Baer, said in the report.

Asia remains the most expensive region in the world for HNWIs – defined as people with a net worth of $1 million or more – to live well after taking the top three places in the index.

Singapore was ranked first, followed by Shanghai, Hong Kong, London, New York and Monaco. Dubai jumped seven places to be ranked the seventh-most expensive city for HNWIs, while Taipei was ranked eighth, Sao Paulo ninth and Miami in 10th place.

“[Dubai] remains an object lesson in the saying, ‘Build it and they will come’ and is also a testament to the power of government to create hubs using financial and other incentives,” Julius Baer said in the report.

“It has become the place that companies and entrepreneurs seeking a base in the Middle East turn to and is popular with expats. Most recently, it has seen the relocation of large numbers of wealthy individuals, which has affected property prices and demand.”

Earlier this month, a report by Henley & Partners, which tracks private wealth and investment migration trends worldwide, said the UAE was expected to attract 4,500 new millionaires this year.

The UAE, the Arab world’s second-largest economy, has undertaken several economic, legal and social reforms in recent years to strengthen its business environment, boost foreign direct investment and attract skilled workers.

In 2019, amendments were introduced to the golden visa initiative to simplify the eligibility criteria and expand the categories of beneficiaries.

Valid for 10 years, the golden visa aims to encourage exceptional workers and foreign investors to establish deeper roots in the country.

Watch: Who is eligible for a UAE golden visa under new rules?

Meanwhile, the Julius Baer’s Lifestyle Survey, which was included in the report and polled 347 HNWIs worldwide in February and March this year, found that HNWIs are also prioritising health and well-being as much as they do financial resilience.

This “future proofing” of body and mind also extends to building better relationships with family and friends – a high priority in all regions – and creating a secure and efficient home environment in which to live and work, it said.

“It's no longer about financial health, freedom and security. It's also physical health, freedom and security. All regions are spending more on health per se, including health insurance and fitness plans and equipment,” said Fahd Abdullah, executive director of investment advisory services at Julius Baer Middle East.

Top 10 most expensive cities for HNWIs in 2023

1. Singapore
2. Shanghai
3. Hong Kong
4. London
5. New York
6. Monaco
7. Dubai
8. Taipei
9. Sao Paulo
10. Miami