Residential hospitality – a hybrid model offering long-term stays with luxury hotel-like amenities – is fast emerging as the new sought-after segment in Dubai’s real estate market as many turn to hotel and serviced apartments, industry experts told Arabian Business.
This comes amid a surging influx of new expats moving to the emirate and soaring rental prices, with digital nomads opting to reserve long-term stays that offer flexibility, personalisation, and luxury amenities.
Business and leisure travellers to the city are also adding to the rising demand in this segment as they seek convenience, connectivity, and bespoke experiences.
The surging demand has triggered fierce competition in the market, with leading players such as InterContinental Residences Dubai Business Bay coming up with customised stay packages, offering payment flexibility, personalised experiences and value-added services such as high-speed internet, co-working areas and AI-based room settings and housekeeping schedules.
The newly emerging segment is also witnessing the entry of more players, both global and regional, as hospitality brands and real estate developers sense a booming business opportunity to cash in on, industry insiders said.
“The line between residential and hospitality experiences will continue to blur as guests are increasingly looking for properties that combine ‘home-like comforts with hotel-like services’,” Mohamed Mahmoud, Cluster General Manager, InterContinental Residences Business Bay & Crowne Plaza Business Bay, told Arabian Business.
“As this segment continues to grow, we foresee more travellers and expat emigrants embracing residential hospitality for its flexibility, value, and ability to cater to evolving lifestyle and business needs,” he said.
Mahmoud said flexibility will remain a key driver, with shorter minimum stay requirements, customisable service packages, and dynamic pricing models appealing to a wider range of guests – from digital nomads to families and business travellers.
Hospitality brands, real estate developers cash in on growing segment
Sector experts said the fast-rising demand for residential hospitality is making the segment an attractive opportunity for hospitality brands and real estate developers alike.
“Looking ahead, several trends are expected to shape the residential hospitality market and attract more travellers and job seekers in Dubai,” a senior executive at another city-based firm offering the services, who preferred not to be identified, said.
“Personalisation is reshaping guest experiences and technology allows us to offer tailored services – from customised housekeeping schedules to curated dining experiences,” the executive said, adding that in a competitive market like the UAE, this personal touch fosters guest loyalty and enhances the overall value of long-term stays.
Experts said the value proposition is further enhanced by the lifestyle elements companies offer such as wellness activities, recreational spaces, and prime locations with easy access to and views of key attractions.
Guests benefit from a seamless blend of hotel-style service and residential privacy, making residential hospitality a compelling alternative in today’s high-cost rental environment, they said.
The InterContinental Residences Business Bay & Crowne Plaza Business Bay senior executive said as the segment evolves, the company is committed to staying ahead of these trends by continuously innovating and adapting to the needs of modern travellers.
“By combining luxury, flexibility, and sustainability, we aim to remain a leader in this competitive and growing market, he said.
Mahmoud also revealed that the rising demand in the segment has yielded strong commercial results for the company, with the long-stay segment contributing an impressive 178 per cent above budget in the first month itself.
Dubai residential hospitality segment poised for demand boost
Industry experts said the residential hospitality segment is expected to see a major demand boost in 2025 as it bridges the gap between traditional rentals and luxury hospitality, offering a solution that combines the best of both worlds.
For business travellers, residential hospitality provides flexibility and convenience as fully serviced residences eliminate the need for long-term commitments, upfront costs, or the hassle of setting up utilities and services.
With amenities like high-speed Wi-Fi and co-working spaces, the companies also create an environment where productivity thrives while ensuring all the comforts of home.
“Looking ahead to 2025, I believe the most successful long-term stay models will be those that prioritise flexibility, technology, sustainability, and wellness, while maintaining the premium service and attention to detail that define the UAE’s hospitality landscape,” Mahmoud said.
He also revealed that the company’s long-term stay demographic is predominantly millennials, who form the majority of its guest base, compared to Gen Z travellers.
“Millennials are drawn to long-term stays due to their flexible working lifestyles, desire for fully serviced accommodations, and preference for spaces that seamlessly integrate living, working, and leisure.
Mahmoud also said interestingly they are also observing a significant shift in the decision-making dynamics among its guests, with a notable increase in female travellers taking the lead as decision-makers.
“This reflects broader societal changes, where women are becoming more prominent in leadership roles, entrepreneurship, and independent travel,” he said, adding that many female guests prioritise safety, wellness, and community.
He said guests are no longer confined to rigid leasing terms and instead look for customisable packages that suit their individual needs.
“Looking ahead, we anticipate that these trends will continue to evolve, with younger generations like Gen Z gradually entering the long-term stay market as their professional and personal needs align with this lifestyle,” Mahmoud said.
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