Hospitality to become the hot property investment in Dubai Real Estate

Thursday, January 2, 2014

 

Dubai is famous throughout the world for its hotel scene, with destinations to suit every imaginable taste. It seems that barely a week goes by without ground being broken on another ambitious new development.


It is no surprise, then, that the emirate came out top in a survey of Middle Eastern resorts in terms of the highest hotel occupancy and rates per room.


The Ernst & Young Hotel Benchmark Survey, highlighted in Arabian Business in 2013, showed that beachfront hotels in particular are a safe Dubai property investment as visitors continue to flock to the emirate to take advantage of its warm weather, sandy beaches and flourishing hospitality sector.


Dubai experienced an overall growth in hotel room occupancy of two per cent in the first six months of 2013 with the average room rate rising from $267US to $284. Beachfront hotels were singled out for particular praise with occupancy growth of 3.7 per cent, taking it to 84 per cent, and an average room rate of an impressive $389.


According to Zubin Firozi, Better Homes’ head of property management, the future will stay bright with the wider UAE maintaining a leading position in terms of hotel openings - a trend set to continue thanks to Dubai’s successful Expo 2020 bid.


“The UAE is among the top five countries in the world for new hotel openings over the past five years and will continue being at the top. The hospitality industry in the UAE saw a positive growth throughout 2013 complemented with a healthy occupancy rate. The media recently reported that Abu Dhabi hotels reaching an impressive 83 per cent occupancy which was 10 per cent higher than the same time last year.


With Dubai wining the World Expo, the emirate is expected by 2020 to rank as the world’s most attractive destination for international visitors. The Expo is expected to attract over 25 million visitors and to accommodate these visitors the hospitality sector will have to grow exponentially.”


There is positive news for holiday lets too with a government decree to regulate the sector hailed as a way to encourage more investment:


“With regards to short term rentals or holiday homes, earlier in December 2013, HH Sheikh Mohammad Bin Rashid Al Maktoum, issued Decree No. 41 of 2013, regulating the holiday homes market in Dubai,” said Zubin.


“This initiative has come with the objective of contributing to the growth of the tourism industry by broadening the range of accommodations available to visitors. The Department of Tourism and Commerce Marketing (DTCM) will be responsible for the granting of licences to those who intend to rent out a furnished residential property on a short term, daily, weekly or monthly. Legalising and regulating the short term rental industry will not only contribute to the tourism and hospitality sector, but will drive the real estate sector attracting more investors to invest in the Dubai real estate market.”



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