Escape from Dubai, Ticino as an alternative?
The conflict in the Middle East is pushing entrepreneurs away from the Persian Gulf, in search of new destinations
Contesto
Escape from Dubai, Ticino as an Alternative? The Middle East war has triggered a capital flight from the United Arab Emirates to Switzerland. Among its consequences, the spotlight is now on Ticino as a financial hub and lifestyle choice. While awaiting banking sector data, concrete initial insights come from the real estate sector: in Ticino, interest is growing among affluent clients seeking not only capital protection but also residency relocation. "From one moment to the next, among people who thought they were in a safe haven, not just in terms of taxation but also lifestyle, thinking they were safe... Today, there has been a strong reaction and consequently, interest in returning here, including from clients who left one or two years ago. They have recontacted us to return." Philipp Peter, owner of Wetag Luxury Real Estate, explains the situation. According to Wetag Luxury Real Estate data, about fifty property purchase inquiries from Dubai have been received in the last thirty days. Some of these inquiries have already led to property viewings, and most estimates indicate another twenty viewings in the next two weeks. The demand for properties in Ticino has increased by 50% compared to the same period last year, with a 25% increase from 2020. This is the result of a survey conducted by Wetag Luxury Real Estate on a sample of 50 inquiries from Dubai. Among the most frequent requests are luxury apartments in communes like Ascona, Lugano, and Bellinzona. "Our clients love the most central areas with a good lake view," Philipp Peter explains. "They are also very interested in residential areas with private parks and beaches." The demand for properties in Ticino is also stimulated by Swiss tax legislation. According to the Federal Law of August 31, 2017, concerning the...
Dettagli operativi
Escape from Dubai, Ticino as an alternative? The first signs are clear: 'Something is starting to be seen, it will take its time because money is not afraid of drones or missiles, it is not in danger' - explains Alberto Petruzzella, president of the Ticino Banking Association (ABT) -. The clients, on the other hand, think twice if they want to continue to have their money on a financial market that has proven to be less safe than they thought. Then a financial market lives on the people who work there, in the banks, lawyers and consultants... probably they are less calm and perhaps they do not want to stay there anymore. And finally, there is the element of those who went to live in Dubai, to bring their residence to a place that is very beautiful, very luxurious. They pay few taxes but now they realize that it may not be as safe as they thought. And so Europe and Switzerland are back in vogue.' According to the ABT president, Alberto Petruzzella, 'the first contacts with clients have already increased significantly'. 'Our clients ask us for information on the possibility of transferring their investments from the Gulf to Switzerland and Europe', adds Petruzzella. 'Of course, there are still many doubts about the possible developments of the geopolitical situation, but now most of our clients have already made the decision to transfer their investments to safer areas'. This is evident in the fact that 'bank deposits in Switzerland have increased by 10% in the first quarter of 2023 compared to the same period of the previous year', states the ABT president. 'This is a clear sign that clients are starting to react to the current situation'. ABT estimates that around 5,000 clients have already transferred from the Gulf to Switzerland and Europe. 'According to estimates, it...
Punti chiave
Escape from Dubai, Ticino as an alternative? Ticino as a destination: 'We've had several people arrive... Germans and citizens of Scandinavian countries... Ticino remains interesting, even the Lugano district. There's security, lifestyle...', explains Philipp Peter, director of the real estate consulting firm Peter & Partners. 'In the past three weeks, we've had around 50 requests, directly from Dubai. We've already conducted five visits and the rest will follow, certainly.' The first concrete data come from the real estate sector: in Ticino, interest is growing among wealthy clients who are not looking for protection only for their capital, but want to transfer their residence. 'Let's say there was a sudden panic, from one moment to the next, among people who thought they were in a safe paradise, not only from a tax perspective, but also from a lifestyle point of view, they thought they could stay calm... Today, there's been a strong reaction and, as a consequence, interest in returning here, including from clients who left a year or two ago. They've contacted us again to return,' explains Peter. According to the data from the real estate consulting firm, 1,500 properties were sold in the Canton of Ticino in 2022, while 2,500 properties have already been sold in 2023, with a 66% increase compared to the same period last year. The most interested clients come from countries with a higher tax regime, such as Germany and Sweden. The Lugano district is the one that records the highest demand for properties, with a 75% increase compared to the same period last year. 'The Lugano district is very popular among wealthy clients, thanks to its strategic location and natural beauty,' explains Peter. The Canton of Ticino has approved a law that allows obtaining residency...