A Wise Investment in Dubai Hotel Apartments

With the boom of the tourism industry in Dubai,it has become a destination of choice for tourists and travelers.  It has also become the hub for business meetings and deals.  This is largely because of its ideal location halfway between the East and the West where Europeans and Asians can actually converge in a comfortable location.  It has an assortment of business establishments as well as busy shopping centers and entertainment spots.

real estate marketWith such business and tourism activity in Dubai, it is imperative for the country to make provisions to host millions of visitors in a year.  With this scenario, and with more developments continuously being done in the country, investments are streaming into Dubai particularly in the real estate market.

More people investing in Dubai hotel apartments.  Although this investment may cost high, it has a high yield potential.  There are a lot of different properties being constructed all around Dubai that can prove to be worthwhile investments.  These will serve to accommodate the influx of visitors and travelers flocking to the country as well as open up opportunities for investment.

These serviced apartments have become the preferred place to stay for most visitors and travelers because of their convenience.  A lot of these apartments provide a home-like environment with the amenities of a hotel complete with cleaning services, wi-fi connection, and most modern conveniences.  Europeans who frequent the beaches of Dubai and Asians connecting to the business sector in its business district have welcomed the idea of staying for at least a week and even as long as a year in these apartments.

Hotel ApartmentsApartment rentals in Dubai are on the rise, as evidenced by online bookings as well as offline transactions.  Those living in Dubai now have the chance to get a bite of the tourism and commerce boom by owning at least one of these serviced apartments and making them a good source of income.  Pre-selling in Dubai is predominant and one can easily rack up an apartment or two in the busiest districts of Dubai.

The cost of renting Dubai hotel apartments is also relatively high compared to ordinary flats and hotel rooms.  Since they are preferred by most travelers, they have become popular real estate investments as well.  Rental rates can double as compared to long-term lease rates, thus, higher revenues are expected for the investors.

Though a vast majority of these hotel apartments in Dubai are owned by private funds and hotel operators, several mid-rise hotel apartments are being constructed to be offered to individual investors who have been largely excluded in past years.  But the increase in tourism and shopping which started in 2010 has increased the demand for accommodation and leisure projects in the region.

Most of the new Dubai hotel apartments are constructed near or adjacent to huge malls, which have been offered to individual investors.   The height of the industries in Dubai is yet to come, projected to happen in 2015 and the next few decades.  Lately, the revenue rate per room has steeply climbed and even the number of guests entering Dubai has increased to 10 million in a year.

renting the apartmentAs a rule, buyers have to make a down payment of 10 percent of the total price followed by several more payments during the building’s construction.  They are also required to share any profit they make from renting the apartment out.  But in the end, it evens out well, showing more revenue to the space owner.

Investment in Dubai hotel apartments is an opportunity that must not be brushed aside.  Dubai developers are seeking individual buyers because lending for projects remain tight, even for hot investments like hotel and accommodations.  Building developers are seeking alternatives including bond and share sales to finance projects.