12,000 new rooms delivered in Dubai to welcome guests from all over the world
Preparations for "Expo 2020" revive the hotel market in the UAE
Occupancy levels for Dubai hotels recorded 58% from the beginning of the year until May 2021. Archive
Dana Salbak: "The balance between the supply of four- and five-star hotels confirms the growing tourist base in Dubai."
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"JLL", the global specialized real estate investment and consultancy company, issued its latest report on the performance of the real estate market in the United Arab Emirates, which indicated the recovery of the UAE hotel market, with expectations of a significant increase in demand during the current year, with the entry of new supply into the market The arrival of tourists from all over the world to visit the Expo 2020 Dubai.
In preparation for the arrival of visitors from all over the world to attend this international event, Dubai is working to complete 12,000 hotel rooms during the second half of the year to meet the increasing demand and the gradual return to travel, after the hotel sector was affected by the outbreak of the “Corona” pandemic.
According to JLL, the new supply in the city includes a group of four-star hotels, which constitute the majority of projects currently being implemented (49%), in addition to a number of new five-star hotels (37%).
supply balance
For her part, Dana Salbak, Director of Research for the Middle East and North Africa at JLL, said: “The balance between the supply of four- and five-star hotels confirms the growing tourist base in Dubai, and provides more hotel accommodation options. of the medium and affordable category without affecting the quality, which is part of Dubai's strategy to attract visitors from various destinations, and this is reflected in the expected high numbers of visits to the (Expo) exhibition.
The report also dealt with the improvement in hotel occupancy levels in Dubai steadily this year, recording 58% from the beginning of the year until May 2021, compared to 46% during the same period in the past year 2020.
Occupancy levels
Similarly, in Abu Dhabi, occupancy levels have improved, rising from 60% from the beginning of 2020 until May of the same year, to record 61% during the same period in 2021. However, average daily prices are still facing pressure in the capital, where they decreased by 7 % to reach $89 during the period from the beginning of 2021 until May of the same year.
Hotel operators in the UAE also continue to offer accommodation deals to take advantage of the demand for domestic tourism, as international tourism has remained limited due to the pandemic.
"We can expect this trend to continue in the short to medium term, until the measures taken to further lift travel restrictions succeed in opening major source markets, especially ahead of Expo 2020," Salbak added.
sale points
In the retail outlets sector, the report highlighted the change of retailers in some cases from traditional physical outlets and resorting to new retail outlet concepts, entering into partnerships with online shopping and delivery platforms to increase revenue. This step comes as an attempt to revive the retail centers and ensure flexibility in light of the spread of many electronic stores and specialized and unique concepts across shopping centers, which benefit both customers, retailers and investors.
In the housing sector, June is considered one of the best months in terms of deals and transactions in Dubai, with more than 6,300 sales transactions worth 14.76 billion dirhams recorded this month, which is the highest value recorded in one month since 2014, according to the Dubai Land Department. Dubai.
As we witnessed at the beginning of the year, the demand for high quality villas is still increasing, which has led to a 10% increase in prices in Dubai and 6% in Abu Dhabi, compared to the same period last year.
office units
JLL confirmed that in the office market, it is expected to deliver 70,000 square meters in Dubai, and 18,000 square meters in Abu Dhabi, during the second half of the year.
The market has also seen an increase in inquiries from international companies looking to set up their businesses in Dubai.
This high demand follows a successful vaccination campaign and a gradual return to normalcy, as well as recent investor-friendly regulations.
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