Serviced Apartments in Dubai Bear Fruit Long Before Completion
The hotel business in Dubai is gradually becoming a costlier headache for investors and developers amidst the climate of the rampant housing market. Developers are finding that a hotel project requires major upfront capital and takes years for owners to see a return on investment while serviced apartment residences are bearing fruit long before completion in the form of off-plan sales.
Hotels in Dubai are extremely expensive buildings especially when used as stand alone properties. In most cases, developers and investors are looking at up to six years before seeing any return on investment. If you opt for serviced apartment residences that are associated with the hotel, the residences can be sold to utilize the profits for the hotel portion. This is due mostly to the fact that the residential property industry has been flourishing in Dubai.
Serviced apartments associated with hotels make the investment more viable and profitable by leveraging against the high costs that are associated with building stand alone hotels. Serviced apartment residences are becoming a very sound investment for Dubai hotel developers. Viability has become more attainable due to the increasing demand for the luxury of a hotel experience in a home style setting.
According to the Dubai Department of Tourism and Marketing (DTCM), the number of tourists visiting Dubai will jump to 7.7 million this year from 6.9 million in 2007. A study by HSBC said the UAE is now the second destination of choice for expatriates, after Singapore, thanks to high salaries and ease of access to luxuries.
Due to the increase in international travel by corporate sectors, the demand for serviced apartments has experienced rapid growth. Increases in tourism and corporate travel have also increased the competition for the serviced apartment industry. In general, rates among competitors vary depending on the class and standard of facilities. Among the top serviced apartment properties, the rates tend to be similar across the board.
Short-term serviced apartment accommodations offer flexibility to those who do not wish to commit to a long-term tenancy agreement, but at the same token, it creates confidence in levels of service, quality, and security. The combination of serviced apartments with hotel accommodations also attracts a wider variety of guests.
Hotels in Dubai are extremely expensive buildings especially when used as stand alone properties. In most cases, developers and investors are looking at up to six years before seeing any return on investment. If you opt for serviced apartment residences that are associated with the hotel, the residences can be sold to utilize the profits for the hotel portion. This is due mostly to the fact that the residential property industry has been flourishing in Dubai.
Serviced apartments associated with hotels make the investment more viable and profitable by leveraging against the high costs that are associated with building stand alone hotels. Serviced apartment residences are becoming a very sound investment for Dubai hotel developers. Viability has become more attainable due to the increasing demand for the luxury of a hotel experience in a home style setting.
According to the Dubai Department of Tourism and Marketing (DTCM), the number of tourists visiting Dubai will jump to 7.7 million this year from 6.9 million in 2007. A study by HSBC said the UAE is now the second destination of choice for expatriates, after Singapore, thanks to high salaries and ease of access to luxuries.
Due to the increase in international travel by corporate sectors, the demand for serviced apartments has experienced rapid growth. Increases in tourism and corporate travel have also increased the competition for the serviced apartment industry. In general, rates among competitors vary depending on the class and standard of facilities. Among the top serviced apartment properties, the rates tend to be similar across the board.
Short-term serviced apartment accommodations offer flexibility to those who do not wish to commit to a long-term tenancy agreement, but at the same token, it creates confidence in levels of service, quality, and security. The combination of serviced apartments with hotel accommodations also attracts a wider variety of guests.
Labels: accommodations, Dubai, residence, Serviced apartments in the Middle East
Posted by Moveandstay
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