Dubai’s strategic budgeting propels real estate market expansion, long-term wealth migration

Dubai’s government has recently announced the largest budget in the city’s history, with projected revenue of AED107.7 billion for 2026 and AED99.5 billion in expenditures next year. Roughly 45 to 48 percent is earmarked for infrastructure and construction, while around 28 percent will support social development: schools, hospitals, housing and community services.

Meanwhile, the federal government of the UAE has committed AED92.4 billion for 2026, a 29 percent increase compared with the previous year, prioritizing spending on education, healthcare, pensions and social protection.

These twin budget decisions reflect a shift beyond short-term growth; they represent an intention to build durable capacity for population expansion, improved quality of life and long-term economic stability.

Dubai’s structural real estate demand grows amid HNWI migration

This contrast becomes even more pronounced when viewed alongside the UK’s fiscal direction. Against this backdrop, many prospective international residents are reconsidering traditional investment destinations.

In the UK, rising tax burdens, potential changes to capital-gains and pension regimes, and increased regulatory scrutiny have created a climate of uncertainty for high-net-worth individuals. As a result, Dubai’s stable fiscal posture, zero-income-tax policy and renewed investment in social infrastructure are becoming increasingly attractive.

“This is the clearest signal yet that Dubai is preparing for long-term population growth and wants to attract global talent, entrepreneurs and high-net-worth families, and that demand ultimately shows up first in the real estate market,” said Simon Baker, founder and managing director of haus & haus.

Meanwhile, Paul Sharland, off-plan director, noted “We are seeing a new profile of client – business owners from the UK and Europe who are not just investing; they are moving their companies, their children and their future here. They want stability, world-class schooling and a place they can plan a decade ahead. Dubai is offering exactly that.”

The result is a shift not only in capital flows but in lifestyles. Buyers are increasingly seeking long-term residential homes and family-friendly communities in Dubai, signaling a structural real estate demand rather than speculative interest.

Migratory shift boosts Dubai’s real estate growth

Recent data from the Dubai Land Department underscores the impact of this fiscal and migratory shift on the real estate market. Transactions for properties above AED10 million in Dubai currently sit at 5,978 so far in 2025, marking a 40 percent increase compared to the same period in 2024. High-end deals across premium waterfront, urban and mixed-use projects surged, while mid-market and family-oriented developments also saw a pickup in enquiries and sales.

Industry sources suggest that this demand wave is far from limited to ultra-luxury segments: mid-market apartments, townhouses and long-stay rentals are enjoying increased uptake as relocating families, professionals and entrepreneurs settle in for the long term.

“Real estate is no longer just a lifestyle choice. It is part of the new wealth architecture, a sovereign hedge that combines capital protection, mobility and legacy planning,” Baker added.

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Safety and security remain key reasons for moving to Dubai

The UAE’s federal budget and Dubai’s record AED302.7 billion three-year spending plan emphasize investment in infrastructure, education, healthcare and social development, all without increasing the tax burden on residents or businesses. This fiscal divergence is a major driver of wealth migration, with Dubai’s pro-growth policies aligning with the priorities of globally mobile families seeking stability, opportunity and long-term value.

Another factor influencing relocation is the difference in safety and security. Dubai consistently ranks among the safest cities in the world, offering low crime rates, secure public spaces and predictable day-to-day living. For many European and UK families facing rising concerns around crime and urban safety, Dubai provides a level of stability that has become a decisive part of the relocation equation.

The combined effect of generous public spending, wealth migration and real estate demand points to a sustained growth trajectory for Dubai, not just as a tax-efficient hub but as a mature, diversified global city attractive for families, entrepreneurs and long-term investors.

Infrastructure investment strengthens connectivity, public services and quality of life. Schools and hospitals support families looking for stability. Housing demand rises as more individuals relocate with businesses and families. And real estate, both luxury and mid-market, becomes a lever for wealth preservation and growth.

For global investors and high-net-worth individuals evaluating options, Dubai’s budget and the migration wave it supports sends a clear message: the emirate is no longer a niche alternative. It is fast becoming the default destination for those seeking stability, opportunity and long-term value.