00:00I think the so-called mansion tax actually ended up being quite benign, so I'm sure there was a collective sigh of relief at the amounts that were released by Mithreeves, just £2,000 on homes over £2 million and topping out at £7,500 on homes over £5 million, so that's relatively palatable.
00:19But I think there is a real sense of fatigue amongst the wealthy in the UK. They're used to tax planning, they're used to planning for their futures, and this constant environment that we've had of uncertainty is certainly having a knock-on effect as people start to look to de-stirling their portfolios and move some of that wealth into landscapes like Dubai, where it's much easier to forecast for the future and the tax landscape is so clear.
00:46Do you anticipate further movement from wealthy UK individuals to this part of the world then on the back of this budget or in subsequent months?
00:56We do, and I think it's less to do with the actual tax announcements, but more that real sense of fatigue and the leaks and that run-up, and what a murky landscape that makes for people when it comes to looking for decisions.
01:09How has the influx of Brits to the UAE looked like the last couple of years? Are you seeing a pick-up in momentum?
01:14So there were 16,500 millionaires who left the UK, and our data shows that 9,500 of them left on UAE shores, and we're seeing that.
01:24So it's unusual where you have both the prime and the mid-segment continuing to perform, but that is what we're seeing in Dubai.
01:33And what are the types of property needs that they're looking for? Are these Brits coming with the purpose of buying property here, or is it mainly in the rental space that they're looking at?
01:46I would say, to be honest, it's purchasing. As you know, the rental landscape here can be a little bit frustrating, and I think what we're seeing is people put down roots.
01:58The schooling growth that we've seen here has supported that, and then even buying your primary residence and then diversifying into investments.
02:07And again, there'll be a knock-on effect as margins are tightened in the UK by that 2% increase that Rachel announced as well.
02:15Do you see this predominantly occurring in upper income, the wealthier segments of society, or are you also seeing some working-class Brits make the move as well?
02:24Well, I think what's interesting about the budget announcement yesterday is where they're doing this freeze-on on income tax bans.
02:29I think we will see those high earners, not necessarily that ultra-high net worth community, but that community who are still earning, now being taxed further, being dragged into this bracket that's going to give them less income to do as they wish with.
02:44Yeah. What do you think the biggest risk is? I mean, not necessarily UK-related, but we spend so much time here talking about the positive outlook for Dubai real estate and the fact that so many people are moving here from all parts of the world.
02:56What do you think the biggest risk is to that momentum?
03:00I think the risk is going to be the oversupply that could come from the one- and two-bedroom studio apartment market.
03:08So if you look at 130,000 units handing over in that space compared to only 15,000 villas or townhouses handing over in that same time period, I think supply could become a bit of an issue.
03:21So what about the luxury premium part of the market?
03:23I think that's still relatively buoyant.
03:25There isn't still a lot of supply there.
03:28And if you look at this millionaire migration and saying 9,800 of them arriving in Dubai, there aren't necessarily 9,800 luxury homes in surplus.
03:36So I still think we have supply and demand on our side there.
03:39Yeah. And just UAE relative to the rest of the region, do you think that other parts of the region are going to catch up as well?
03:46Saudi obviously making a big push as well, easing some of their foreign ownership laws.
03:50How do you see the migration occurring vis-a-vis other cities?
03:54I think we're seeing a move already into Abu Dhabi, which is really exciting and beautiful product being offered in Abu Dhabi.
04:02And not only that, but relatively more affordable to Dubai.
04:05And then if you look at the infrastructure frameworks that they're putting in with the airport located closer, the metro line as well.
04:12I think it's a good news story for all of the Emirates.
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