The hotel properties market in the Emirates has witnessed a great boom in recent years, due to the development of tourism activity in various emirates, most notably the Emirate of Dubai. Consequently, the progress of the tourism sector has imposed urgent demands on the necessity of establishing more hotel projects, whether in the form of separate houses, furnished apartments, or integrated floor hotels with all of its service facilities, in order to cover the number of visitors and provide them with comfortable accommodation with a variety of options that meet all tastes.
In addition, hotel properties have received great attention in terms of investment and profits from sales and rental returns. Many Arab and foreign investors rushed to keep pace with the growth and prosperity of the UAE real estate market and to benefit from new project opportunities in the context of ownership in freehold areas and investment. Therefore, through the course of our next article, we will learn together about the development of the hotel properties market in the Emirates, and the opportunities for ownership and investment, while listing all the details on this topic.
Hotel properties in Dubai and the Emirates
The hotel properties market is active in the UAE, especially in Dubai. The emirate has provided many options for constructing residential and commercial buildings, which can be utilized for tourism or hotel investment.
Dubai has gained wide fame in the tourism sector, as it receives visitors arriving for tourism or residence for the purpose of work from various countries of the world in large numbers.
- Of course, every newcomer searches for a suitable place to stay, whether alone or in partnership with others. Here, there has been an active movement of investors who want to earn high profits from the sale and rental of hotel buildings, including residential apartments, hotels, and tourist resorts, as each of them attracts a different type of expatriate, according to the varying accommodation costs from one property to another and commensurate with each type.
The best hotel apartments in Dubai
You can view the best hotel properties in Dubai through the following list of hotel apartments:
Ramada By Wyndham Downtown Dubai Hotel Apartments
It is considered the best among the group of hotel apartments in Dubai. It is located a 15-minute walk from Burj Khalifa and Dubai Mall, directly near the Opera. It is also distinguished by its distinctive view and its proximity to many important service sites.
- Ramada Dubai apartments are also a great choice for accommodation, in terms of comfortable space and fully equipped rooms, whether bedrooms or living rooms, in addition to equipping the kitchen with the best necessary tools and supplies for cooking, and let us not forget the clean bathrooms and swimming pools as well.
Sofitel Dubai The Palm Hotel Apartments
Sofitel Dubai The Palm apartments are located in the Palm area – Dubai. It is considered one of the best hotel properties in the Emirates. Especially through what it provides residents with a wonderful view and enjoyment of a clean and comfortable apartment. It also provides all the services and living facilities that the tourist needs during his stay, in addition to the distinguished service and hospitality staff that is always ready to meet all requests as quickly as possible. This is what makes booking and staying at Sofitel Dubai-The Palm apartments a truly wonderful experience that you will never forget.
Address Dubai Mall Hotel Apartments
Address Dubai Mall apartments are located in the Dubai Mall, and are considered one of the distinctive hotel property options with their views of the towers and water fountains. As well as the sunset view over the wonderful seawater. In addition, the apartments are distinguished by their cleanliness and unique service features for visitors, whether investors or tenants. The hotel offers healthy rooms with good ventilation and a charming view. The apartment also includes a luxurious kitchen with the latest equipment and necessary service facilities, such as electricity, water, and internet. As well as swimming pools and sun loungers for very enjoyable sunbathing.
Swissotel Al Murooj Dubai Hotel Apartments
Swissotel Al Murooj Dubai apartments enjoy a prime location in the middle of the Dubai Trade Centre, 1 km from Dubai Mall and Burj Khalifa. The high-floor hotel is also distinguished by its apartments of large and medium sizes and wonderful views. As well as reception, hospitality, and cleaning services provided by the staff who are always ready to meet everything required by the guests. The rooms in the hotel are also well-arranged and equipped with all the necessary necessities for residents, including electrical appliances and service and entertainment features throughout the day.
Anantara Dubai Hotel Urooj Apartments
Anantara Dubai Apartments are considered some of the best hotel properties in the UAE. It is distinguished by its strategic location and its wonderful view of Burj Al Arab. Guests also enjoy a comfortable and peaceful stay with excellent hospitality service. In addition to enjoying the most delicious daily dishes and hot and cold drinks available in the hotel’s pleasant cafes and lounges. In addition to the luxurious furniture in the rooms and the necessary equipment for each room, including air conditioning, refrigeration, and the Internet.
Owning and investment opportunities in hotel properties market in the Emirates
There are many hotel properties opportunities for ownership and investment in freehold areas in Dubai, the most prominent of which are the following:
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Palm Jumeirah area:
It is considered one of the best tourist areas distinguished by its hotel properties in Dubai. It includes a wide range of apartments prepared for investment and ownership, as well as a distinctive choice of hotels and villas that are distinguished by their wonderful service and luxurious tourist attractions.
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Business Bay area:
It is considered one of the distinguished locations for hotel properties ownership and investment in the Emirates, especially through its distinguished location in the center of Dubai. Therefore, it is a very important tourist and investment destination for Arab and foreign businessmen and investors, as it allows them to own residential, commercial, and hotel properties, invest in them with ease, and profit from them.
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Jumeirah Village Circle:
The village has a good reputation and wide fame, due to its location in the Emirate of Dubai in a lively place close to Al Khail Road and Sheikh Mohammed bin Zayed Road. Investors can also find unique opportunities for hotel ownership and investment in Jumeirah Village. This is through a group of apartments and hotel complexes designated for rent and equipped with the latest household equipment.
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Dubai Marina area:
It is one of the most famous freehold areas in Dubai. It is also highly sought after by businessmen to invest in it. Especially since it is one of the most popular areas for rent and residence by tourists and expatriates. It includes a distinguished list of luxury hotel properties with the best services and specifications.
Models of ownership and investment in the hotel properties market in the Emirates
There are a variety of hotel properties models in the Emirates designated for ownership and investment, the most famous of which are the following:
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DAMAC Towers in the Business Bay area.
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Radisson Dubai DAMAC Hills project.
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Royal Regency Suites Marina apartments in the Dubai Marina area.
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DAMAC Maison Canal View Hotel Apartments in Business Bay.
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Cheval Maison – The Palm Apartments in Palm Jumeirah.
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Al Bandar Arjaan by the Rotana area overlooking Dubai Creek near the airport.
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Leva Hotel Apartments area, close to Dubai Mall.
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Rawdat Al Amwaj Hotel Properties in Jumeirah Beach.
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Rose Garden Hotel Apartments in Bur Dubai.
Investment returns on hotel properties
Hotel properties in the UAE offer many investment advantages. Including providing a wide range of apartments, hotels, and complexes prepared for investment, which achieve high profitable returns for investors, whether daily, monthly, or annual. The profit rate from investing in hotel apartments also varies according to the area of each apartment and the number of its rooms. The monthly profit returns are often shared by both the investor and the hotel management, in a ratio previously agreed upon between the two parties.
Owning hotel units under a freehold ownership system
The freehold law in the United Arab Emirates allows the ownership of hotel, residential, and commercial properties by foreign persons from outside the UAE. This is in the freehold areas in Dubai and Abu Dhabi designated for non-Emirati investors.
The freehold system also identified several basic points to ensure expatriate ownership in freehold areas, as follows:
- The possibility of owning hotel properties in freehold areas for all foreigners.
- The investor obtains the right to absolute ownership of the property without any time limit.
- The owner can rent his property and benefit from the monthly return, according to the UAE government’s standards in this regard.
- Not being restricted to a specific age to start investing and buying real estate in the Emirates.
Hotel rental system
Hotel properties in the Emirates are subject to the rental system according to the following laws:
- Regulation No. 1 of 1998: includes the licensing and classification of hotels, hostels, and hotel apartments, and their amendments.
- Regulation No. 1 of 1998: Includes licensing and classification of hotels, hostels, and furnished apartments.
- Law No. 26 issued in 2007: regulates the relationship between tenants and landlords in Dubai.
- Government Decree No. 26 of 2013: Allows dealing with various problems and disputes related to rent in the city of Dubai.
Operating companies in the hotel property market
Hotel operating companies play a significant role in providing the UAE real estate market with the best construction and marketing services. Every company seeks to impose its presence among many competitors. This is done by providing the highest quality work that reflects high operational efficiency while supporting financial leverage and trying to reduce the total costs of real estate financing loans.
In addition to the prominent role of operating companies in achieving growing and continuous revenues, they ensure permanent profits for themselves and for investors, which stimulates the buying, selling, and leasing of hotel properties in the Emirates.
Demand and supply trends in the hotel properties market
The current year 2023 witnessed remarkable growth in the hotel properties market in the Emirates. The real estate market index recorded a noticeable increase, confirming the accuracy of the analytical forecasts issued in the year 2022. In this context, the trends of supply and demand for purchasing and investing in real estate are still increasing among citizens and expatriate investors. The names of Dubai hotels, apartments, and hotel villas also topped the headlines of economic news and real estate website blogs. This is to meet the requests of expatriates who desire to reside there or invest in it by selling or renting and achieving a high financial return in the short term.
The development of luxury, medium, and economic hotels
The UAE hotel sector includes several hotel options, as follows:
- Luxury Hotels: A group of luxury hotel properties classified as 5 stars. It is designated to receive many visitors and tourists from the elite classes, whether businessmen, politicians, art stars, or athletes, as staying in these hotels costs huge sums of money. Thus, the construction reality of building luxury hotels has developed significantly recently and has witnessed popular investments by many hotel groups spread throughout the Emirates.
- Medium and economic hotels: These are hotels classified as 4 and 3 stars and designated for middle-income tourists coming from many countries, including Arab countries and South American countries such as Brazil and Argentina. The mid-range hotel market has witnessed great activity during the current year, due to its acceptable entry and accommodation prices, which are competitive with other Emirati hotels.
Investing in floating hotels and tourist resorts
Investing in floating hotels and tourist resorts is considered a successful hotel property investment. Especially with the desire of many tourists to go to quiet places away from the hustle and bustle of life, and water hotels are often a safe haven for all those wishing for this distinctive accommodation.
Thus, The demand for booking and renting rooms in floating hotel apartments and suites in luxury tourist resorts has increased recently. Consequently, investors have achieved high profits in return for securing tourists’ requirements in terms of their distinctive accommodation and providing them with the best services in terms of hospitality, comfort, and recreation.
Tourism and commercial potential in the Emirates
The United Arab Emirates is considered a distinguished tourist destination, as it includes a number of the most important real estate, tourist, commercial, and hotel attractions, the most important of which are the following:
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Towers: Burj Al Arab, Emirates Towers, Burj Khalifa, and Dubai Creek Tower.
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Commercial centers: Mall of the Emirates, Dubai Mall, Dubai Festival City, and Mercato Mall.
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Hotel properties: Downtown Dubai hotels, hotel apartments in Dubai Marina, and Dubai Marina hotels.
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Attractions: Global Village, Sheikh Zayed Grand Mosque, Louvre Abu Dhabi, floating hotels, Dubai Aquarium and Zoo, Dubai Opera House, and Dubai Dolphinarium.
Laws and legislation related to hotel properties
Hotel property laws in the UAE are as follows:
Law No |
The reason for issuing the law |
The purpose of the law |
| Law No. 6 of 2019
|
Shared property ownership
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Licensing any jointly owned property by the competent authorities as a hotel facility, including (hotels, hotel apartments, and hotel rooms). |
| Regulation No. 1 of 1998
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Hotel properties licensing | Licensing and classification of hotels, hostels, and furnished apartments
|
| Law No. 26 issued in 2007
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Organizing landlord-tenant relations | Regulating the relationship between tenants and landlords in Dubai
|
Challenges and risks in the hotel properties market in the Emirates
The hotel properties market in the Emirates faces several challenges and risks, the most prominent of which are the following:
- Cooling global real estate market.
- The lack of determining the budget required for future investment by some investors causes problems in the mechanism of implementing construction work for hotel buildings.
- Lack of organization in work and shortening of time by some real estate developers.
- Problems suddenly appear in the maintenance of hotel properties.
- Selling and rent prices for hotel apartments, villas, and hotels have increased at notable rates recently.
Future trends of the hotel properties market in the Emirates
Many statistical studies indicate that the hotel properties market is heading towards further growth and prosperity at the level of the United Arab Emirates as well as at the global level. Especially through the UAE government’s support for the urban movement, encouraging real estate investments, and providing all legal facilities for them. Many real estate investment projects are also exempt from taxes, which encourages newcomers to start investing their money in Dubai and the rest of the Emirates with confidence and safety.
Here we have concluded our article about the development of the hotel properties market in the Emirates and opportunities for ownership and investment, through which we reviewed many important ideas in the Emirates hotel properties market, and the most prominent hotels, apartments, and tourist villas established within the most luxurious and beautiful areas. Let us put them in front of you and leave you free to choose between them if you want to visit the Emirates, stay in one of its wonderful hotels, and spend the most enjoyable times in its charming regions.
