Dubai’s has become the busiest airport in the world overtaking London Heathrow airport and expecting to even grow further in 2016 estimating to hit the 77 million passenger mark for this year.
With expo 2020 in mind, Dubai’s status of being a world-class holiday and business destination, it shows no signs of diminishing. The traffic only looks like an upward scale. The expo itself is to create about 17.5million visitors in a period of 6 months
According to Dubai’s Department of Tourism and Commerce Marketing, approximately 11.6 million guests stayed in the emirate’s 634 hotels and hotel apartments during 2014. This is a 5.6 per cent year-on-year increase.
Tourism is expected to increase between 7—9 per cent over the next five years and account for almost 30 per cent of Dubai’s GDP. It’s estimated that Dubai now has around 90,000 hotel rooms available, with up to 160,000 in the pipeline over the next five years. Many of these will be in response to the expected Expo 2020 demand, but also reflect Dubai’s booming tourism industry which is growing on the back of developments such as the Mall of the World and the much-anticipated Bluewater’s Island complex which will house the world’s largest Ferris wheel. Along with the Dubai Parks and Resorts coming to a completion.
It’s no surprise then that astute investors are looking to Dubai’s hotel sector for new lucrative opportunities. Over recent years, a new concept in has been growing in popularity — the serviced apartment. It’s a very simple and attractive idea: fully-fitted, serviced apartments which offer the comforts of home in luxurious settings.
They are ideal for business travelers who find conventional hotels too impersonal, or for families with children who need more amenities than hotel rooms presently offer.
Investors also have the reassurance of knowing that if they decide to opt for the rental, rather than the primary residence route, a ‘rental pool’ option is available. This means that all administration, management, bookings and maintenance is taken care of by the hotel itself.
With Dubai’s property market holding steady so far in 2016 and the anticipated demand for hotel rooms increasing yearly, now is an excellent time to consider investing in these new and lucrative opportunities which have the potential to be both less volatile than residential properties and offer a greater yield.
Emaar Properties has sold a variety of serviced apartments in Hotels around Downtown Dubai being Address Lake Hotel, Mall Hotel and Dubai Marina Address Hotel. Other such Hotels are under construction such as The Address Boulevard, Sky views and Fountain Views. Other 4star Hotels under the name of Vida have also been launched.
Emaar offers the investors the option to pool all the rental properties. The apartments within the Pool generate a higher income and in return offer better income up to 7-8%. The Hotel apartments make up the minority of the hospitality market in Dubai, allowing room for growth even if the overall tourism takes a dip. Such rooms are very popular with the Saudis who are on the largest groups of travelers to Dubai.
One can’t go wrong with such serviced apartments. There are only a number of very High End serviced apartments which are mainly under the umbrella of Emaar. Their unmatched services and customer service attract many from across the Globe
If you’re an investor then investing in a serviced apartment is certainly something to consider over the coming year.
Deja Vu Real EstateBrokers LLC
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