With the 2020 World Expo being held in the UAE, investments are being made by the authorities in the infrastructure for tourism in preparation for the event which has resulted in a decrease in the amount of family sized residential units.
Investors are now looking to create rental income by investing in off-plan rooms and apartments situated in four and five star hotels in city and resort locations, according to overseas property experts Hopwood House.
Property assets that generate an income have been on a steady rise in many different international property markets following the recession as investors look to invest in safe places to protect their capital. The Dubai property market crashed heavily and it saw apartments drop in capital value by more than 60% over a short period in 2009.
Dubai’s government have done all they can to introduce a level of stability to its property market through encouraging investment in tourism rather than relying on the oil-related sectors. Following this move by the government there has been a real increase in the interest shown towards the tourism related real estate market.
Emaar and Damac are two of the biggest developers in the UAE and they have created hotel management companies that are already operating hotels. There has been a rapid expansion in Emaar’s ‘The Address hotels’ and there are ongoing developments in Downtown Dubai.
There a number of planned hotel projects in Dubai that include hotel resorts from internationally known brands such as Nikki Beach, Hard Rock and Intercontinental Hotels Group. Hotel investment opportunities have now become more available as the Emirate gears itself up for the 2020 World Expo. The most challenging tourist development in place in Dubai is Dubailand which is an entertainment complex that is likely to open before 2020. The development will cover an area of 27 million square metres and the project consists of real estate, hospitality, leisure and entertainment facilities.
The Dubai Development and Investment Authority (DDIA) will be managing Dubailand and it will ensure that the Emirate becomes the main tourist destination in the Middle East.
An announcement has been made regarding an important development taking place on the Dubailand site. The St Regis Dubai Al Habtoor Polo Resort & Club is likely to be completed in 2017 and will be located only 25 minutes from Dubai International Airport. The new resort is likely to attract 15 million tourists to Dubai each year.
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