Family offices are fast emerging as the new focal points for attracting and routing high-value investments in Dubai’s real estate sector, providing tailored solutions in sync with the unique goals and values of the ultra-rich, industry insiders said.
The increasing tendency is causing the number of foundations and entities affiliated with well-known family companies and individuals at the Dubai International Financial Centre (DIFC) to soar.
Following recent extreme weather incidents, several major real estate companies are reportedly investing in climate-resilient designs in the emirate’s real estate sector, particularly the residential sector.
“The rise of family offices in Dubai signifies a growing recognition of the importance of tailored wealth management solutions for affluent families,” Sachin Kumar Singh, Business Head and Managing Partner at Foremen Fiefdom, a leading Dubai-based real estate service provider, said.
“These offices provide ultra-high-net-worth individuals (UHNWIs) and high-net-worth individuals (HNWIs) [from around the world and also from the region] with the resources and expertise needed to effectively manage and grow their wealth, ensuring a sustainable legacy for future generations,” he said.
According to the last count, the DIFC, which is increasingly becoming a hub for family office activities in Dubai, is home to up to 440 registered foundations and more than 600 active entities connected to well-known family businesses and individuals.
Dubai’s influx of wealth
Industry insiders said the continued influx of billionaires, centi-millionaires, and high-net-worth individuals adds to the family offices’ rising role in attracting and managing the investment activities of the rich and famous.
Dubai is a very desirable location for wealth management and investment opportunities, with an estimated 68,500 HNWIs, 206 centi-millionaires, and 15 billionaires living there, according to the World’s Wealthiest Cities Report 2023.
Singh stated that the GCC and the broader MENA region have long recognized the UAE as the primary hub for business and investment.
With its strategic location, business-friendly environment, and commitment to innovation, the UAE is poised to become the regional center for family businesses, further driving the growth of investments, especially in the real estate sector, he said.
The Foremen Fiefdom senior executive stated, “We have actively encouraged the establishment of single or multi-family offices within the DIFC as Dubai continues to evolve into a hub for personal and multi-generational financial services.”
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Make ‘weather-proof’ investments
Singh said Dubai, as well as many other cities in the UAE, could soon expect to see a new trend of developers incorporating climate-resilient designs into their projects, especially residential ones.
“This is aimed at ‘weather-proofing’ investments in the sector,” he said.
According to industry experts, the recent extreme weather incidents highlighted the importance of incorporating climate-resilient designs into real estate projects as an additional measure to both reassure investors and protect their investments.
“Dubai, as well as many other parts of the region, faces formidable challenges from its scorching summers, the threat of rising sea levels, and, of late, flooding,” stated a senior executive who wished to remain anonymous from a city-based company, adding that the real estate industry may be impacted by these developments.
Research indicates that climate change could jeopardize coastal properties, leading authorities in many places around the world, including the UAE, to take measures to mitigate the impact of climate change and actively promote sustainable development models.
As part of these efforts, the Dubai government is also incentivizing the construction of green buildings.
“By prioritizing climate-resilient infrastructure and properties, we can forge a sustainable path for Dubai’s real estate market, ensuring its allure for residents seeking a comfortable, progressive lifestyle,” Foremen Fiefdom’s Singh said.
