Outlook is bright for Dubai's hotels

07/01/2013 - Dubai Property News Posted by Neil King
Outlook is bright for Dubai's hotels

A greater number of property investors are looking to snap up hotels in Dubai, a new survey has suggested.According to Jones Lang LaSalle, the emirate's hotel sector has gone from strength to strength in the past year and the industry has a very bright future.The firm's regional director of the Middle East and Africa Gabriel Matar said confidence in the property sector is "holding up well" despite the high-profile economic problems in Europe.With demand so high, some of Dubai's most attractive hotels have sparked bidding wars and Mr Matar insisted that yields in the city are expected to rise by ten per cent in 2013.The organisation also stated that 28.8 per cent of respondents are targeting upmarket assets in the Europe, Middle East and Africa region this year, which is considerably higher than the previous Hotel Investment survey in May 2012.Unsurprisingly, demand for luxury high-end real estate is highest in Dubai, Abu Dhabi and the French Riviera.Mr Matar said Dubai is the best performing hotel market in the Middle East and North Africa and is certain to be the "one to watch" in 2013."Since the downturn of 2009, Dubai hotels have reported a strong recovery in occupancy and average daily rate levels," he remarked."In light of a slowing development pipeline and political stability in the country, investors believe that Dubai's operating fundamentals will continue to improve in the short and medium term."It really is no shock to see hotels emerge as the most attractive property investments in Dubai.Around 57 million people were expected to have visited the city in 2012 and this figure is set to grow sharply in 2013.Dubai International Airport is currently undergoing major expansion work, which will take the overall capacity to 75 million passengers a year.With a host of major exhibitions, conferences and entertainment events lined up throughout the year, there is every chance that hoteliers will be extremely busy in the next 12 months.Looking for property investments in Dubai? Let The First Group help you out