There is an exceptional growth in the sector of investment in hotel real estate in the UAE, which is expected to reach record levels this year. People seek to avoid risks and receive a high return on their investment.
Investments in hotel property in Dubai are gaining popularity among foreign investors. This choice proves to be optimal, since well-known hotels are not often affected by economic changes, so such investments are among the safest ways to save profit when diversifying an investment portfolio.
More and more investors are buying and then renting hotel rooms, referring to Dubai’s actively developing hotel industry. After the purchase the number is leased to the guests on behalf of the management company, and the income is divided between the company and the owner.
The number of visitors of Dubai is constantly increasing. They need to stop somewhere, and hotels provide vital services to Dubai’s tourists.
All these reasons stimulate development of the market of investments in hotel real estate.
If compare investment in real estate with other types of investment, the owner of the hotel room can not worry about the day-to-day concerns – they are taken over by the management company, the duties of which include cleaning, booking, renting, marketing, advertising and other tasks that involve the possession of ordinary residential real estate.
Moreover, the hotel room is fully furnished, managed and serviced by the hotel operator, and at the same time the investor receives a part of the proceeds.
Investing in hotels is relatively simple. The main steps include researching the market, buying a number and waiting for tangible revenue.
Market research is of great importance and includes the choice of a sought-after area, as well as a hotel operator with a good reputation.
Investors are advised to buy and rent hotel rooms in popular areas such as Jumeirah, Business Bay, Dubai Marina and other prosperous and developing parts of the city. Usually these areas are of great demand throughout the year, because they are located next to the office centers and famous sights.
Another important component of safe investment is the purchase of a hotel room of a well-known hotel brand, which is managed by a reliable operator.
The tourism development strategy of Tourism Vision 2020 suggests that by 2020 Dubai will annually receive 20 million tourists, which stimulates significant growth in its hotel sector. According to the World Economic Forum, Dubai today is the 6th most visited city in the world.
In Dubai, the world’s busiest international airport is located, and Dubai’s market for buying and renting real estate is one of the fastest growing in the world. The number of residents and visitors of the city is constantly growing due to the magnificent infrastructure and one of the highest living standards in the world.