UAE: A Deloitte report commissioned by developer Seven Tides has highlighted the demand for luxury serviced apartments on The Palm in Dubai.
The report, entitled Assessment of Luxury Serviced Apartment Provision for Palm Jumeirah Dubai, highlights the demand for luxury internationally branded units, as a result of increased investor focus on Dubai in the build up to Expo2020.
Martin Cooper, director, real estate, Deloitte Middle East, said: “The Palm Jumeirah is set to remain as the prime luxury beach resort destination in Dubai, as further critical mass is established as new hotels open.”
Abdulla Bin Sulayem, CEO of Seven Tides, which developed the 442-unit Anantara Residences Dubai The Palm, said: “Palm Jumeirah currently has a total of 950 luxury serviced apartments managed by international hotel operators, and the Deloitte report confirms that the sector is continuing to mature and continues to attract a growing target market looking for a prime location and the luxury beachfront resort lifestyle.” said
Figures from the Dubai Statistics Centre figures reveal that the serviced apartment sector has shown steady growth over the last five years with a compound annual growth rate for number of guests and length of stay increasing by 14 per cent and 19 per cent respectively; with strong interest from GCC nationals in particular.
The findings in the report follow an announcement by the Dubai Department of Tourism & Commerce Marketing (DTCM), which plans to expand the Emirate’s current accommodation offering by permitting the rental of furnished properties as short-term holiday lets through a new two-tier licensing system.
“With the cost for one-bedroom units starting at AED 2.6 million, the potential for income generation from a managed rental perspective, based on the equivalent hotel occupancy figures and average year-to-date rates, is substantial – making it even more attractive to investors looking to build their overseas portfolios,” said Bin Sulayem.
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