The growing trend is causing an increase in the establishment of foundations and entities linked to prominent family businesses and individuals at the Dubai International Financial Centre.
Family offices are rapidly becoming the central hubs for attracting and directing high-value investments in Dubai’s real estate sector, offering customized solutions aligned with the unique goals and values of the ultra-wealthy, according to industry insiders.
This growing trend is causing an increase in the establishment of foundations and entities linked to prominent family businesses and individuals at the Dubai International Financial Centre (DIFC).
Meanwhile, the real estate sector in the emirate, particularly the residential segment, is anticipated to experience ‘weather-proofing’ of investments. Several major real estate companies are reportedly investing in climate-resilient designs due to recent extreme weather events.
“The rise of family offices in Dubai highlights an increasing acknowledgment of the need for bespoke wealth management solutions for affluent families,” said Sachin Kumar Singh, Business Head and Managing Partner at Foremen Fiefdom, a leading real estate service provider based in Dubai.
“These offices offer ultra-high-net-worth individuals (UHNWIs) and high-net-worth individuals (HNWIs) from both the region and around the world the resources and expertise necessary to efficiently manage and grow their wealth, thereby ensuring a sustainable legacy for future generations,” he added.
As of the latest count, it is estimated that there are 440 registered foundations and over 600 active entities linked to prominent family businesses and individuals located at the DIFC, which is becoming a central hub for family office activities in Dubai.
Dubai’s wealth influx
Industry insiders indicate that the ongoing influx of billionaires, centi-millionaires, and high-net-worth individuals contributes to the increasing importance of family offices in attracting and managing the investment activities of the wealthy and renowned.
The World’s Wealthiest Cities Report 2023 highlights that Dubai hosts around 68,500 HNWIs, 206 centi-millionaires, and 15 billionaires, making it a highly appealing destination for wealth management and investment opportunities.
Singh stated that the UAE has long been acknowledged as the primary hub for business and investment within the GCC and the broader MENA region.
With its strategic location, business-friendly environment, and dedication to innovation, the UAE is set to become the regional center for family businesses, further fueling investment growth, particularly in the real estate sector, he mentioned.
“As Dubai continues to develop into a hub for personal and multi-generational financial services, the establishment of single or multi-family offices within the DIFC has been strongly encouraged,” said the senior executive of Foremen Fiefdom.
Move to ‘weather-proof’ investments
Singh mentioned that Dubai, along with various other cities in the UAE, could soon witness a new trend where developers integrate climate-resilient designs into their projects, particularly in residential ones.
“This aims to ‘weather-proof’ investments in the sector,” he stated.
Industry experts pointed out that the recent extreme weather events underscored the necessity for incorporating climate-resilient designs in real estate projects. This serves as an additional measure to both reassure investors and safeguard their investments.
“A senior executive at a city-based proptech, who preferred not to be identified, noted that Dubai, along with many other areas in the region, faces significant challenges due to its scorching summers, the threat of rising sea levels, and, more recently, flooding. They added that such developments could have an impact on the real estate sector.
Research suggests that climate change may endanger coastal properties, prompting authorities in various parts of the world, including the UAE, to implement measures to mitigate its impact and promote sustainable development models actively.
As part of these efforts, the Dubai government is encouraging the construction of green buildings.
“By prioritizing climate-resilient infrastructure and properties, we can pave the way for a sustainable future for Dubai’s real estate market, maintaining its attractiveness for residents seeking a comfortable, forward-thinking lifestyle,” said Singh of Foremen Fiefdom.”
