One of the world’s leading real estate consultancies reported that hotel property market and retail sector maintained positive trends in the second quarter 2014. And during the several next years these sectors of Dubai economy will continue to experience the sustainable growth.
Due to economic growth in the Emirates the demand for commercial real estate units in Dubai increases significantly. The great interest is generated by retailers. The limited supply and increasing demand for retail areas encouraged the rental growth. According to JLL’s figures the renting of retail areas in the major shopping malls surged by 12 per cent in the second quarter.
Dubai retail sector experienced the profit improvements that were triggered by a flow of tourists arriving in the emirate. The profitability in this sector is much higher than rental expenses for retail space.
After announcement of launching a new retail development Mall of the World the confidence to the retail sector returns. As a result the retail businesses are going to perform well in the nearest future as well as the wider sector. This project will exceed the size of the currently biggest Dubai Mall. Mall of the World will help to strengthen Dubai’s position as a leading player in the tourist and retail industries.
Hotel property in Dubai also continues to experience growth. Despite the fact that from April to June the Dubai hotel market https://www.thefirstgroup.com/en/news/2012/12/dubai-hotel-market-continues-to-thrive.aspx absorbs 1,500 rooms, the highest revenue per available room was recorded during the same period.
Hotel occupancy rates remains at the level 85 per cent during the year to May, 2014. For the last three years hotel daily rates increased to $276 and it influenced on the dynamic performance in Dubai property market.
The hotel owners suggest that during the celebration of Eid al-Fitr occupancy rates in Dubai hotels may reach the level of 90-95 per cent. The average daily rates can rise to between AED900 to AED1200.
Dubai is regarded as a popular place for celebrations such as Eid. People from different parts of the world have flocked to the emirate to enjoy the occasion. It is one of the many reasons why the emirate has become so attractive for investing in hotels and the hospitality industry.
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