Dubai Hotel Investment Property Benefits
This well-known asset class can offer a wide range of benefits which may not be found in other property types:
- Guaranteed Returns: This would be one of the most popular ones, the legally binding rental return provides huge certainty
- Higher ROI/Yields: Hotels genuinely provider a higher than average rental yield from 7-10% net after costs in most cases
- Fully Managed: With world class management companies (+200,000 employees in some cases) asset management is optimised
- Personal Use: Often such investment structures allow owners to visit for a week or two per year providing the perfect holiday home
Hotel Room Investment Considerations
- Capital Growth: In some cases the growth rate may not be as attractive in comparison to traditional residential property
- VAT: Being a commercial asset, investors must consider a 5% VAT surcharge as well as the Dubai Land Department & Admin Fees
- Resale: When selling the property, it may take a little longer as the property has a more limited potential buyer base
- Control: As a professional entity will be managing your property you will have little say over the operational aspects
Masar Capital Summary
Dubai has some of the highest tourist and visitor numbers in the world, at stages last year, Dubai saw the Number 1 highest hotel occupancy rates in the world, it’s also been named as Trip Advisors Best Destination to Visit in 2022 and 2023, and visitor numbers are huge which provides a great opportunity for investors.
If you choose the right asset, management company and developer partner, ensuring your contract structure is sound, then hotel investment can provide an amazing opportunity to earn higher rental returns, diversify, benefit from a hands-off/stress-free model and offer a holiday home for when needed.
We can assist in choosing the right asset and companies to partner with, explaining all the safety elements, and balancing risk and reward, just contact us using the deals below to view our live Dubai hotel investment properties.
EYWA
- Business Bay
Price: 10,800,000 AED / £2,329,207 / $2,940,992
Anwa by Omniyat
- Dubai Maritime City
Price: 864,000 AED / £184,000 / $236,000
SKYZ Residences
- Arjan, Dubailand
Price: 1,065,000 AED / £228,000 / $290,000
Contact Our Investment Advisors
Contact Us Below To View Our Live Hotel Investment Property
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