The ultra-wealthy are not waiting to see how conflict in The Gulf resolves. Europe’s prime rental markets are filling up – and Switzerland, is where the serious money is heading first, emerging as the primary safe haven for Middle Eastern wealth.
At a glance
- Wealthy residents are prioritising flexibility over permanent relocation, with London’s luxury property agents reporting a 15% rise in enquiries for short-term rentals from UAE citizens, swapping ultra-luxury homes in Dubai for Mayfair and Belgravia
- Other relocation boltholes being cited by wealth advisers, family offices and relocation agents include France, Monaco, Italy and Spain – particularly Marbella and the wider Costa del Sol region
- Realtors in Geneva and Zug are seeing an influx of enquiries from wealthy UAE residents for fully-furnished, short-term rentals with immediate availability
- If sustained, demand could further tighten already constrained rental supply and reinforce Zug and Geneva as Europe’s most concentrated hubs for mobile capital
Property agents operating across Europe’s real estate hotspots are seeing higher volumes of enquiries for short- and long-term rental homes in prime and ultra-prime residential enclaves.
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Having decided to relocate at extremely short notice, these are renters who want immediate availability, long-term flexibility, and are not especially sensitive to price as they adopt a ‘wait-and-see’ approach as the conflict in Iran enters its second month.
Demand is being driven by urgency rather than long-term intent, with tenants prioritising immediacy and flexibility over price – a pattern typically seen during geopolitical shocks.
London’s traditional super-prime postcodes see renewed interest
High-end UK real estate consultancy, Knight Frank, has seen demand for luxury rentals surge since the conflict in the Middle East began in February, with a 16% the rise in the number of prospective tenants compared to the previous year, which they say “plugs the gap” left by longer-term investors exiting the market.
According to prime letting agents operating in the £5,000-a-week-plus bracket are seeing a similar percentage rise in enquiries from concerned UAE-based clients looking for rentals for six months or less – a number that’s been growing week-on-week since hostilities escalated in late February.
Properties in prime London – Mayfair, Kensington, Belgravia – along with larger country houses in Surrey and the Cotswolds are seeing renewed interest from both the Gulf’s wealthiest citizens and a boomerang expatriate tenant pool that had largely relocated to the region over the previous decade.
Speaking to The Super Prime earlier this month, Jo Eccles, Founder and Managing Director of London buying agency Eccord, said that there was excellent value to be found in London’s prime neighbourhoods with interest from the Middle East already rising before the conflict began.
A home from home for the Gulf’s wealthy
Other primary relocation boltholes being cited as in-demand by wealth advisers, family offices and relocation agents include France, Monaco, Italy and Spain.
In Spain, this may coincide with a sharp increase in branded residences and prime developments taking off in UHNW destinations such as Marbella and the wider Costa del Sol region at large, with entries from Dolce & Gabbana, Fendi and Karl Lagerfeld all launching in recent years.
Branded residences and homes within luxury gated communities are particularly sought after ‘homes from home’, report local agents, with ‘resort-style’ and trophy development with resident amenities matching the level of quality and standard of service prevalent in Dubai, Abu Dhabi and Saudi Arabia.
Both Italy and Spain offer advantageous tax regimes, too, with the sunny lifestyles appealing to those seeking a relatively hassle-free, temporary move to a classic European destination.
Heading in the opposite direction, Asia’s traditional financial gateway cities are similarly prospering from wealth flights – seemingly temporarily – to Hong Kong and Singapore.
Switzerland, however, is the enduring haven for the world’s elite, topping monied Middle East residents’ wish lists and fast emerging as the destination of choice for the region’s wealthy-on-the-move.
The Alpine sanctuary’s potent sales pitch is even stronger against the backdrop of escalating tensions.
Switzerland ranked first in advisory firm Henley & Partners annual roundup of premier destinations for global wealth flows, now a refuge for economic elite from the UAE seeking what is genuinely scarce: political and financial stability.
Realtors in global financial hub Geneva and Zug – the town and canton known for being home to some of the wealthiest people in the world – are reportedly seeing an influx of enquiries from wealthy UAE residents for immediately available, turnkey short-term rentals.
The Zug: the Swiss crypto-capital home to billionaires
With a population of 130,000 and only thirty minutes south of Zurich, pretty Zug fringing Lake Zug is considered a safe asset hub, and a financial center for commodity trading and cryptocurrency companies, thanks to low tax rates and business-friendly policies.
First reported in the Financial Times, the ‘Zug-effect’ is seeing the Gulf’s ultra-wealthy compete for the very best temporary homes, with many making enquiries even if they’ve never visited before.
As competition intensifies, short-term rental supply is extremely limited, with agreements signed in days as Middle East expatriates seek out quality accommodation and education in one of the safest countries in the world.
“Everyone knows Zug, even if they haven’t been there,” said Pierre Gabris, the founder and chief executive of Swiss wealth manager Alpen Partners, which has helped several clients relocate from the Middle East. “The first request from clients is almost always Zug”.
Alongside supply constraints, residency for non-EU nationals also poses a significant barrier to entry.
Wealthy UAE expatriates can get a Swiss residence permit for a minimum of one year for a minimum contribution of CHF 250,000 (US $320,000) in annual taxes outside of employment in Switzerland.
“You can’t just simply show up, even if you have a European passport. It takes time and you need a work contract or to establish a company,” said Anja Beck, managing partner at an Engel & Völkers real estate office in Zug.
However, due to limited housing supply, rising demand from Dubai-based expats has also been observed in the Italian-speaking canton of Lugano, the Financial Times said.
Dubai’s loss is Zug’s gain
Serving the needs of the influx of the UAE’s ultra-high-net-worth, there are reports of several hedge funds, financial services, private client and family office firms increasingly expanding or setting up in the region.
Lakefront prime and super-prime homes in or near Geneva and Zug command some of the highest prices in Switzerland with mega-wealth clustering around Cologny – known as the ‘Beverley Hills of Geneva’- Anières and Genthod.
The canton of Zug is one of Switzerland’s regions for high-end real estate, with hyper-luxury lakefront villas commanding some of the weightiest price tags in the country, often sold privately or viewed by invitation-only.
