Investors urged to tap hospitality sector

RITIKA SHARMA / Emirates Business

UAE has always been in the forefront to welcome new investments. Companies in the country are now charting out innovative plans that encourage more individual investors to consider buying properties in the Emirates’ bustling hospitality sector.
Leading the way, Dubai-based real estate developer DAMAC Properties is providing one-of-its-kind opportunities for individual investors to tap into the rapidly growing high-potential hospitality sector.
Ziad El Chaar, Managing Director of DAMAC Properties, said in an official statement, “Dubai’s status as a world-class holiday, business and leisure destination is unquestionably on a growth path and is gaining impetus with each passing day.”
Under the scheme, DAMAC is offering ownership opportunities in their hotels in Dubai. By reducing the investment amount, DAMAC is allowing increased number of customers to invest in an individual hotel room. This can ensure a future stream of steady income and also a free stay every year for the investors.
Farhan Shahid, an overseas property investment consultant, who works from Dubai, told Emirates Business, “There are a lot of mega events like EXPO 2020 and also a number of other factors that will further reinforce Dubai’s position as
a luxury destination not just for tourists but for investors as well. What DAMAC is offering, is a novel concept, which I believe will garner
a very positive response in the coming months.”
It is worth a notice that DAMAC is looking at delivering more than 13,000 additional hotel-room keys by 2021 to add to its existing portfolio of over 2000 hotel-room keys.
“It is all about what the investor is finally getting in return. If I am planning to invest in a hotel and I am getting good returns, plus my yearly holiday stay is being taken care of (like in case of DAMAC’s offer), I will be more than willing to invest. This shows that hospitality has become a new focus of the real estate investors as they start exploring options other than flats and villas,” Hijan Hajra,
an Abu Dhabi-based female entrepreneur who has started a company
offering customised real estate solutions, told Emirates Business.
Also, interestingly, the high-yielding investment in DAMAC’s hotel rooms is available at a minimal rate of AED440,000. According to the scheme, buyers will be able to own a unit and get a lucrative 10 percent return on investment annually.
“We are getting customers, who are very choosy about their real estate investments. Their main purpose behind investment is always to ensure a steady source of future income and they really want something beyond regular villas and flats,” said Hajra.