Tourism A Blessing For The Dubai Get To Let Investor

For the previous couple many years Dubai has proven alone to be the darling of the house investment decision globe each in just the Center East and outside of, it carries on to give substantial rental yields and a extremely very good funds growth level of around 10% which we see now.

However Dubai’s enhancement has not just been restricted to the actual estate sector, the tourism sector has developed by leaps and bounds in the previous 3 many years on your own. With tourists keeping in Dubai accommodations numbering 5.4 million in 2004, while in 2006 vacationer remaining in Dubai accommodations grew considerably to 6.5 million folks. With the range of resort rooms and flats numbering 40,862 in 2006 and the government of Dubai aiming to access a goal of 8-10 million holidaymakers by 2010 demonstrates that there is at present a major hole amongst expanding desire and availability of supply for tourist accommodation which may be significantly felt as important potential sights these as Dubai land and Dubai Athletics Town open up for organization.

This degree of expansion in the tourism business in Dubai has led to a very high occupancy rate for hotel rooms and flats for instance the occupancy level stood at 85% in January 2007 alone. This has presented Dubai and UAE house buyers as a total with a splendid likely to capitalise on this developing sector, the conventional method of assets investment in such as obtain to allows in Dubai may offer buyers close to 8% rental yield per annum. Yet limited phrase letting tenants are charged lodge premiums for every evening which dependent on location and good quality of houses, landlords can stand to make 10-15% rental generate per annum at today’s resort charges.

This is a condition which is not exclusively confined to Dubai, it is also really considerably relevant in other Emirates these as Ras Al Khaimah specially in set up resorts these kinds of as Al Hamra Village , wherever hotel lodging does not suffice to meet demand from customers.
A common issue asked by many investors is what is the best way take advantage of lodging supply hole in Dubai?

There are two key routes which consumers can take with regards to this:

  • The 1st strategy is to buy an condominium or villas and utilise a large quality assets administration organization which will get care of an traders residence. Ordinarily the administration cost will be 20-25% of an apartments lease for every annum. It may perhaps also be needed to invest in a home furniture bundle from property administration organization which may possibly change in price tag amongst £2-£5K.
  • The next selection available to buyers is to obtain a lodge apartment in a single of the key long run tourist destinations such as Sports activities Town in Dubai, this kind of as The Cube [ These developments are often managed by 5* hotel companies which will in many some occasions give investors rental guarantees and 30 days complimentary stay within the hotel. These are developments in a majority of cases will be fully managed, maintained and furnished with no additional cost to yourself.

Those property investors looking for long term investments who do not intend to move into their properties should consider the hotel apartments as their ideal investment solution. It is a type of property which does not require any significant effort on behalf of investors in terms of finding a capable property management firm to maximise property rental turnover, which saves both time and money. Short term holiday letting is the ideal form of buy to let for the savvy Dubai investor, with rumours of rental stabilisation in the traditional buy to let market, holiday home letting presents one the best potentials for sustained high rental yields.


Hamid Shah

Director of Mirage Real Estate Ltd [

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