ZURICH: Dubai has dropped off the list of the world’s top 10 most expensive cities and now ranks at 14.
It is down by seven ranks as per Julius Baer’s Global Wealth and Lifestyle Report 2026, as exchange rate moves reset the cost table for high-net-worth residents.
Julius Baer linked the slide to currency effects rather than cheaper living in the emirate. Dubai’s dirham peg to the US dollar reduced its relative standing in a dollar-based index as other currencies strengthened. Julius Baer builds the ranking from a basket of 20 goods and services across 25 cities. Singapore held first place for a fourth straight year. Zurich climbed to second.
Monaco entered the top three for the first time. London slipped to fifth. Julius Baer collected index data through late February and completed survey fieldwork in early March 2026.
Dubai entered this year from a far higher base than in previous editions. Julius Baer placed the city seventh in 2025 after a jump from 12th, even though average local currency prices rose only 1.4 per cent. Cars climbed 12.5 per cent, and residential property rose 17.4 per cent in that report, showing that wealthy households were already paying more for major purchases in the emirate before this year’s ranking reversal.
Julius Baer recorded a different force in 2026. Zurich and Monaco gained ground largely because the Swiss franc and euro appreciated against the US dollar. Sydney posted the biggest annual climb, rising six places to eighth.
Dubai’s fall reflects that the currency spread more than a retreat in local pricing, according to the bank’s latest findings. For residents spending in dirhams, cost conditions did not ease in the way the headline ranking suggests.
Dubai’s 2025 climb had already placed the city alongside established wealth centres in Europe and Asia. Julius Baer described the emirate last year as a firm challenger to London, Monaco and Zurich. That context matters.
A seven-place drop from last year’s peak still leaves Dubai inside the upper half of the 25-city index, with its wealth proposition intact and its pricing benchmarked against stronger currency markets rather than weaker domestic demand.
Julius Baer calculated a 10.2 per cent rise in the cost of maintaining a premium standard of living in US dollar terms in 2026. Luxury goods rose 12.3 per cent on average.
Jewellery prices advanced 16.4 per cent and watches gained 15.5 per cent. Julius Baer traced that increase to higher raw material costs, more expensive skilled labour and premium brand pricing anchored in stronger European currencies.
Europe drove much of the reshuffle. Julius Baer said European city prices rose 14.1 per cent in dollar terms, above the global average, while Asia Pacific rose 7.4 per cent. No city in the Americas made the top ten for the first time in three years. New York remained the region’s highest-ranked market. Currency strength, rather than local inflation alone, dictated much of the movement across the league table. Christian Gattiker, Head of Research at Julius Baer, commented that currency remains central to this year’s outcome, though asset prices and consumer behaviour also shape the final result.
Julius Baer’s survey found affluent consumers adjusting where they buy luxury goods. At least one in three respondents changed the geographic origin of some purchases, while more than half said they would travel internationally to buy luxury items and avoid tariff effects.
Dubai still sits inside a region where private wealth spending is outpacing Europe, North America and Latin America. Julius Baer found Middle East investors holding well-diversified, long-term focused portfolios, with strong interest in alternatives and collectables.
Health-related spending and leisure travel also rose across every region in the survey, reinforcing demand for premium services that matter to banks, developers, hospitality operators and private wealth advisers active in the Gulf.
Dubai also retains advantages that reach beyond this year’s rank. Julius Baer said in its 2025 Dubai Spotlight that affluent buyers get more than twice the square footage for their money compared with London.
Julius Baer also linked the city’s appeal to attractive personal taxation, high-quality residences and growing business opportunities. Those factors continue to support inbound wealth, even as exchange rates reorder the 2026 index and lift rival cities with stronger currencies. Dubai’s latest ranking should be read as a pricing reset within a dollar-based comparison, not as a sign of softer demand or weaker wealth inflows. Julius Baer’s own narrative still places the emirate among the most competitive addresses for globally mobile capital between East and West.
Currency moves changed the table this year. Dubai’s residential and business appeal stayed intact.
