How to Invest in Dubai: Real Estate & Hotel Markets
Whether you’re looking to diversify your portfolio or generate passive income, there’s never been a better time to invest in Dubai, particularly in its thriving hotel sector.
Why invest in Dubai?
Dubai is recognised as one of the world’s leading business and tourism hubs. In 2024, the city welcomed a record 18.72 million international visitors, marking a 9% increase from the previous year and reaffirming its place among the world’s top tourist destinations. At the same time, real estate transactions generated a record AED 761 billion (US$207bn) with more than 226,000 properties sold, marking an all-time high for the emirate.
Thanks to its tax-free environment, world-class infrastructure and long-term residency options for property buyers, Dubai continues to attract global interest. With the government’s Real Estate Sector Strategy 2033 and Dubai Urban Master Plan 2040 shaping the city’s future expansion, authorities are actively creating new opportunities for property owners to capitalise on emirate’s growth trajectory.
Hotel guestrooms vs residential properties
When it comes to investing in Dubai, hotel guestrooms stand out among the pack. Unlike traditional buy-to-let properties, hotel guestrooms offer:
- Higher average yields thanks to Dubai’s reputation as a year-round tourism destination.
- Professional hotel management, with zero maintenance responsibilities.
- Passive income opportunities, making them ideal for overseas investors.
- The opportunity to apply for UAE residency visas via property ownership.
In the first five months of 2025, Dubai’s hotel sector reported an average occupancy rate of 83%, with Revenue per Available Room (RevPAR) reaching AED 513 (7% YoY), supported by a robust Average Daily Rate (ADR) of AED 620 (+5% YoY). These numbers position the city ahead of global competitors such as London, New York and Paris.
Hotel Ownership with The First Group
The hotel industry in Dubai is thriving, led by strong visitor demand and steered by respected developers such as The First Group. With a reputation for building and operating high-performing, upscale hotels in top locations across the city, The First Group offers clients the chance to purchase guestrooms in its developments, providing a simple, lucrative and fully managed entry point to the city’s hotel market.
Flagship projects currently under development
Ciel, Dubai Marina: Set to claim the title of world’s tallest hotel when it opens later this year, Ciel is a 365m-tall architectural masterpiece, housing more than 1,000 guestrooms and suites and world-class guest amenities, including a rooftop observation deck housing an infinity pool and bar, multiple signature restaurants and outstanding leisure facilities.
The First Collection Dubai Studio City: Ideally located in the heart of Dubai’s fast-growing media and production hub, The First Collection Dubai Studio City’s 370 guestrooms and suites are designed with comfort and convenience in mind. Guests will enjoy premium lifestyle amenities including two outdoor swimming pools, a fully equipped fitness centre, and a luxury spa offering a wide selection of relaxing treatments and therapies, alongside signature dining options.
The First Collection at Dubai Sports City: The First Collection at Dubai Sports City is a new urban lifestyle retreat set to elevate one of Dubai’s most vibrant and active communities. Featuring 488 thoughtfully designed guestrooms and suites, the hotel will deliver a seamless blend of comfort, convenience and contemporary style. Guests will enjoy exceptional leisure facilities, including a fully equipped fitness centre and rooftop pool, along with three distinctive dining experiences that reflect the spirit of modern hospitality.
Every hotel in The First Group’s fast-growing portfolio is managed by a highly experienced team of professionals, offering guestroom owners a completely hassle-free experience.
The benefits of owning with The First Group
- Consistent ROI: Hotel units typically generate higher yields than traditional residential apartments.
- No maintenance fees: All operational costs are covered by the hotel operator, ensuring no surprise expenses.
- Total convenience: The First Group handles everything from bookings to guest services, leaving owners to simply enjoy the benefits of ownership.
- Dedicated support: Each owner is assigned a dedicated Account Manager to ensure their asset portfolio is leveraged to its maximum potential.
- Exclusive benefits: Owners gain access to a range of complimentary benefits, including hotel stays, dining discounts, VIP travel rewards and personalised White Glove Service – all designed to make their ownership experience even more rewarding.
Ready to begin your journey with The First Group?
Contact The First Group today to learn more about our latest hotel developments and discover how you can capitalise on the next phase of Dubai’s growth.
