By Andy Sambidge
Growth Cities report ranks emirate 16th for hotel investment; 15th for connectivity
Dubai has been ranked among the top 25 global hotel investment destinations for 2012 in a new report.
Consultancy Cushman & Wakefield's Winning in Growth Cities 2012-13 report placed Dubai 16th in the top destinations for hotel ranking.
It said investments in the sector exceeded $390m between the third quarter of 2011 and the second quarter of 2012, up more than 30 percent on the same period a year earlier.
The emirate was the only city in the Middle East to feature on the list which was topped by London.
The report said: "Given the constrains on lending by banks, equity investors and high net worth individuals, alongside sovereign wealth funds, are expected to continue to be most active players in the sector.
"These investors will focus on core – often trophy – products leased to top branded operators with proven income streams, and consequently the gap between the first tier and the rest of the market is likely to widen further."
It added: "Helped no doubt by the Olympics, London rose to claim first place in the Top Destinations for Hotel Investment ranking for 2012, usurping New York in the process. Indeed, the largest single asset deal was also recorded in London, with the world famous Claridge’s Hotel changing hands for approximately $500 million."
Dubai was also placed 15th in its list of top cities for connectivity due to the rapid growth seen at Dubai International Airport.
There are plans to increase capacity at Dubai International Airport to 90 million passengers by renovating Terminal 2 and building Concourses 3 and 4.
Completion of the Concourse 3 project, the world's first A380 facility dedicated for use by Emirates Airline, is expected by the end of 2012, increasing capacity to 75 million passengers.
Dubai International is currently the fourth-busiest airport worldwide for international passenger and cargo traffic.
Globally, New York was the largest global real estate investment market for the second year running, witnessing volumes rise 18.9 percent to $34.7 bn, followed by London, which saw 3.8 percent growth.
London was the biggest global office and hotel investment market and the largest for cross-border investors.
New York remained the most prominent multi-family investment market while Los Angeles was top for industrial, Shanghai for development sites and Hong Kong for retail.