Is investing in Dubai hotel apartment a sound choice? The answer is a resounding yes!
Dubai, as we all know is a world-class holiday, business and leisure destination. This status is expected to strengthen in the run up to Expo 2020, the mega event, expected to attract around 17.5 million visitors from across the globe. This is in addition to the double-digit growth in the tourism sector that Dubai has seen in recent years, making an investment in the Dubai hotel apartment a lucrative investment option.
Being one of the greatest cities in the world, Dubai is always a whirlwind of activity filled with iconic sites at every turn. While some people come here and admire the skyline, others come to shop and see spectacular sights such as Burj Khalifa and the souks. Many of these visitors arrive through the Dubai International Airport, officially the world’s busiest airport in terms of international passenger traffic. Furthermore, tourism is expected to increase between 7-9 percent over the next five years and account for almost 30 per cent of Dubai’s GDP. Further, Dubai has close to 160,000 hotel rooms 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.
It’s no surprise that investors are looking to cash in on the Dubai hotel apartment sector for lucrative opportunities. Over recent years, a new concept is growing in popularity — the serviced apartment: fully-fitted apartments which offer the comforts of home in luxurious settings. These properties are ideal for business and leisure travellers who want an alternative to the stuffy hotel suite and for families with children who need more space and amenities than hotel rooms offer. Examples of three such developments are The Kempinski Emerald Palace Hotel, Anantara Residences and The 8, all in Palm Jumeirah. Investors have the reassurance of knowing that if they decide to opt for a rental, rather than go through 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 and the demand for hotel rooms rising every year, now is an excellent time to invest in new Dubai hotel apartments. Not only do they tend to be less volatile than Dubai residential properties, they also offer greater yields.