Escalating conflict in the Middle East is pushing wealthy Middle Easterners to increasingly seek residences in top European destinations, causing a significant increase in demand for luxury properties, according to Bloomberg, cited by Greek media.
Estate agents in cities such as London, Monaco, Switzerland and Marbella, Spain, are talking about a surge in interest from wealthy investors and families who are either looking for a temporary relocation or are considering settling abroad permanently until the situation in their area stabilizes.
Changing strategy for wealthy investors
The ongoing tensions have changed the image of cities such as Dubai and Abu Dhabi, which in recent years had become a magnet for international capital thanks to tax incentives and a high standard of living. Now, many wealthy investors are reconsidering their presence in the region and turning to “safer” markets.
In Geneva, real estate agent Jean Florian of Rockwell Properties is looking for a luxury home worth about 20 million Swiss francs for a client looking to relocate from the Middle East. At the same time, he notes, more and more people are interested in the Swiss real estate market, especially the luxury housing sector.
Increasing demand in Spain and London
In the south of Spain, Engel & Völkers registers many new inquiries daily for purchases and rentals in Marbella. Interested parties are looking for homes that offer resort-like services, such as concierge, gyms and restaurants, in a living model similar to what they are used to in Gulf cities.
In London, demand for luxury rentals is also growing, with available properties falling and prices high. According to market data, the number of new applicants for high value homes has increased by almost 17% compared to last year.
Most applications are for temporary residency of up to six months, mainly from families who have recently moved to the Middle East but maintain strong ties to Europe.
Temporary decisions and uncertainty
Although more investors are considering relocation, most currently avoid permanent decisions due to tax and bureaucratic difficulties such as changing tax residency, enrolling children in schools and setting up bank accounts.
Instead, they prefer short-term solutions, waiting to see how the conflict develops. As brokers note, the demand is mainly for “safe havens” in Europe, with no immediate commitment to permanent resettlement.
European destinations are once again in the spotlight
Countries such as Italy, Spain, Portugal and France appear to be benefiting from the new trend as they return as attractive destinations for international capital that had been diverted to the Gulf in recent years.
At the same time, Switzerland and London remain key poles of attraction for wealthy Middle Eastern clients, reinforcing Europe's image as a “safe haven” in times of geopolitical uncertainty.
Experts predict that this trend will continue as long as the situation in the region remains unstable, with the luxury real estate market acting as a key indicator of global wealth movements.
