Fasih Uddin
Founder I Sales Director
The tourism and real estate industries in Dubai, have both undergone tremendous and steady growth in the past two decades.
With more than 14 million tourists visiting the city every year, the demand for hotels, especially luxury hotels in Dubai has risen too. As Downtown Dubai is one of the hottest and most luxurious districts in the city, Dubai has witnessed quite a surge in the development of hotels in Downtown Dubai.
But how has that influenced the Dubai real estate market?
Let’s talk more about that in this read.
The Rise of Luxury Hotels in Downtown Dubai
Downtown Dubai has emerged as the ultimate global hub of class, luxury and grandeur. Right at the heart of this brilliant transformation is the emergence of luxury hospitality.
With iconic landmarks and tourist attractions such as the Dubai Opera, Dubai Mall and of course the stellar Burj Khalifa, Downtown Dubai has turned into something beyond a residential and commercial epicenter. It is now the finest zenith for global travelers and even UAE’s residents.
The constant infusion of world-class hotels in the district has further elevated Downtown Dubai’s position as a supreme tourist destination.
Legendary Hotels Elevate Downtown Dubai’s Real Estate Market
Amongst the many iconic establishments in Downtown Dubai, the notable hotel developments have strongly impacted the district’s real estate market.
Hotels like Palace Downtown, JW Marriott Marquis Hotel Dubai, Anantara Downtown Dubai Hotel, Armani Hotel Dubai and the famous Address Hotel are landmarks and tourist attractions in their own right. Having a charisma of their own, these hotels are more than just places to rest in. They have become the emblems of world-class service, opulence and sophistication.
Exceptional services, ultimate comfort and architectural grandeur of the hotels in Downtown Dubai add more value to the cosmopolitan appeal of the district.
Hotels Draw the Attention of Tourists
The influx of millions travelers and tourists from across the globe create a demand for hotels in Dubai.
Downtown Dubai is home to some of the most popular tourist attractions and spots in Dubai including Burj Khalifa, The Dubai Fountain, The Dubai Mall, Burj Park, Dubai Opera, Souk Al Bahar, Emaar Boulevard, Dubai Ice Rink and VR Park Dubai. Considering that, it is natural for the global tourists to gravitate towards this district. Consequently, this creates a demand for more hotels in Downtown Dubai.
And since a good chunk of the tourists flocking towards Downtown Dubai seek unparalleled luxury experiences, the need for luxury hotels in Downtown Dubai also elevates.
The Demand of Hotels Impacts the Real Estate Market
Naturally, the ever-increasing need of more hotels and hospitality options in Downtown Dubai positively impacts its real estate market too.
Developers in Dubai have constantly been responding to this demand, and have built new hotels as well as expanded the existing hotels, motels and other hospitality developments. Currently, Dubai houses more than 700 hotels comprising of around 118,000 rooms.
The grand experience of staying in Downtown Dubai often ignites a spark in the tourists to explore permanent living arrangements. Certain tourists, due to various reasons including professional and personal also decide to stay in Downtown Dubai, and other regions of Dubai which creates a demand for residential and commercial properties in Dubai.
Positive Growth of Downtown Dubai’s Real Estate Market
In addition, the booming real estate market of Dubai, particularly Downtown Dubai also sparks a high interest in real estate investment opportunities. As a result, the residential and commercial real estate market flourishes.
Dubai’s tourism industry’s growth has also significantly impacted the residential real estate market. The demand for residential properties has increased as more people move to Dubai to work in the tourism industry or to take advantage of the city’s tax policies. This has increased property prices, with many investors looking to buy properties in the city including waterfront apartments, retail spaces, offices, luxury villas and mansions in Dubai.
As per the report by the Dubai land Department (DLD), the real estate transactions of the city amounted to around $19.7 billion in 2019 alone. This statistic has only increased over the years.
Wrapping Up
The development, expansion and growth of hotels in Downtown Dubai has undoubtedly been a very positive factor in accelerating the growth and success of Downtown Dubai’s real estate market.
Hotels in Downtown Dubai have emerged as the key players in transforming its real estate market’s trajectory. Since the real estate market is booming, it only makes sense to consider investing in it. To succeed in that goal, make sure to get in touch with an adept real estate agent by Elan.
