Growth of family offices to boost realty growth
DUBAI: Growth of family offices are happening globally. Family with huge funds are relocating to cities where wealth preservation, financial stability and above all capital appreciation happens in the long run. Dubai is perfectly positioned to have that role as wealth management center competing with New York, London and Hong Kong.
This was stated by Kashif Ansari —-CEO and cofounder of Juwai IQI during an exclusive interview with Gulf Today.
Ansari stated that globally family offices hold $6 trillion in AUM as per the latest market estimates from Juwai IQI.
The alchemy of financial markets has changed dramatically in the last 16-17 years. Monetary and fiscal policy have taken the center stage in the last 3 to 4 years. Governments are trying their best to maintain macroeconomic stability and to keep confidence in the economies to spur growth. Global investors are moving their capital where growth stability is paramount for many governments.
Family offices are being set up in popular financial centers like Dubai, Hong Kong, London and Zurich. According to the latest report from UBS: Family offices have more than tripled over the last four years from 1285 in 2019 to 4592 om 2023, While the number of family offices grew year on year to 2023 by 20 per cent in North America, 17 per cent in Europe and 22 per cent in Asia, the figure for “Rest of world” surged 31 per cent. Although managers may tend to look towards developed markets for family office capital, the upward trend in emerging markets is noteworthy.
With more family offices moving to Dubai, real estate sector will get a major boost in the long run. Already we at Juwai IQI expect Dubai real estate to achieve $10-12 billion of investment in 2024. We are bullish on Dubai real estate market. Dubai is the new wealth management market for the global investors.