Dubai hotels: 5 reasons to invest in the hospitality sector
Considered the decade’s hottest investment destination, Dubai displays exponential economic progression year on year. According to Genesis Consulting ME, the city is in the top 10 global destinations for business, leisure and shopping – inducing a ripple effect on its real estate sector.
Key variables position properties in Dubai as the realty melting pot of the world. Let’s take a look at why investors find Dubai so attractive and, more specifically, its hospitality sector.
Travel and Tourism
Dubai’s economic progression is heavily rooted in its tourism sector. In 2015, Dubai’s Department of Tourism & Commerce Marketing (DTCM) reported a record 14.2 million visitors – which is set to hit 20 million by 2020. To meet this massive increase, the Dubai hospitality sector has to tap into augmentation opportunities. It comes as no surprise that more than 10,000 new hotel rooms will spring up through 2016 to accommodate the projected increased demand.
The hospitality industry expects a realty explosion ahead of Expo 2020. The Expo sounds off an exciting phase for Dubai’s real estate with tremendous investment and infrastructural prospects in the pipeline. The show is expected to leave the world in awe and excited to invest in the future.
Luxury Hospitality to Rule
A luxury real estate haven, Dubai’s hospitality sector is set for greater traction and sustained upward mobility in light of Expo 2020. Various market trends show induced demand hitting the roof for luxury hotels. Catering to such grand aspirations becomes naturally important to Dubai’s legacy as the world’s luxury hub and a range of 4 & 5-star establishments are scheduled to break every mould possible.
Standalone ventures, located in the prime Burj area, are setting the standards for apartments and cater to a work-life balance through state-of-the-art living. From breathtaking views, in-room services, proximity to some of the world’s greatest landmarks, gourmet restaurants and stunning wellbeing facilities.
[Related: Luxury living in Dubai]
In Vogue Apartments
According to research company STR, apartments have ushered in fresh winds of change in recent years with average occupancy rates expected to reach up to 82%. Based on the Dubai Tourism Performance Report 2016, as of February, 150 standard and 66 deluxe/superior establishments had already hit the city’s skyline.
Positive Predictions, Market Stability
A consistent surge in inbound tourism and global investment means Dubai’s hospitality sector continues to enjoy sustained and reinforced growth. A strong market and economic stability through home-grown investments will provide more opportunities for hospitality investments to come up organically.
It’s an exciting time for the already booming real estate industry in the city as more and more people all over the world are lured by Dubai’s innovative, luxurious and creative charm. And with the anticipation of Expo 2020 around the corner, we expect Dubai to truly show the world what it’s made of – and we’re sure the results will have investors beaming with delight.