Dubai's Palm Jumeirah is the 'prime' location for luxury service apartments

According to a newly released report titled 'Assessment of Luxury Serviced Apartment Provision for Palm Jumeirah Dubai', the Palm Jumeirah is likely to remain the prime location for luxury hotel and serviced apartment provision in Dubai, with demand being driven by increasing tourist arrivals to Dubai and increasing tourism infrastructure provision in the Emirate.


The report was commissioned by Seven Tides - a company focusing on hospitality industry
and real estate in UAE to Deloitte Middle East.

Martin Cooper, Director, Real Estate, Deloitte Middle East states that "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."


Seven Tides' Anantara Residences Dubai
, which welcomed its first tenants in Q4 2013, is one of several developments where unit owners stand to benefit from positive tourism growth for the Emirate, which expects to register 10.9 million visitors by the end of 2013, growing to a forecasted high of 25.8 million by 2023 according to the World Travel & Tourism Council.


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.


"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 Abdulla Bin Sulayem, CEO, Seven Tides.


The report also notes that luxury and upscale international standard operators have experienced performance consistently above market averages, concluding that the demand for luxury serviced apartments is likely to remain strong in the medium to long term buoyed by news of the Emirate's Expo2020 win and government commitment to expanding its already diversified tourism product.


According to Dubai Statistics Centre figures, the serviced apartment sector showed steady growth over the last five years with a compound annual growth rate for number
of guests and length of stay increasing by 14% and 19% respectively; with strong interest from GCC nationals in particular.


Source: Seventides
 

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