By Abdulla Bin Sulayem
Real estate: Dubai's growing repertoire needs creative developers
The UAE is one of the world’s foremost business and leisure destinations, and both our key sectors, real estate and hospitality, offer plenty to be optimistic about in the run-up to Dubai’s Expo 2020.
As billion-dollar developments prepare to welcome a predicted 25 million visitors during the period, Dubai Tourism figures show 106,167 hotel rooms in the emirate across 678 establishments in September 2017, an aggregated six percent increase from September 2016. The government estimates a total of 160,000 hotel rooms by 2020 ensuring plenty of healthy competition in the market.
It is therefore vital to stand out from our peers. Highly trained staff, F&B offerings, and ambience at each hotel, guarantee our guests have memorable stays. Our new British-branded hotel Dukes Dubai, the luxury Anantara The Palm Dubai Resort, and the Mövenpick Hotel Ibn Battuta Gate all ensure variety is the spice of life.
Real estate mimics the hospitality industry’s over-supply challenges. By the end of the year, 13,500 units will have been completed and delivered. In 2017, we launched SE7EN Residences on Palm Jumeirah. Not only is this prime real estate, producing high rental yields, it will also benefit from solid capital growth. Once again, a unique selling proposition, from lagoon villas to beachfront residences, brings enormous faith in our projects.
At local and international exhibitions and roadshows we’ve attracted investors from the UAE, India, Russia and the UK, reflecting continued interest from overseas investors in UAE realty. Indians topped interest this year with AED12bn in property transactions from 6,263 buyers, aided by AED5.8bn from the UK. A strengthening rouble has also seen investment return from Russia.
Mature markets need developers creative in selling their projects at a premium. Residences need truly to appeal, not just to investors, but also end users increasingly seeing a long-term future in Dubai.