According to the latest report, the real estate market in the UAE presents golden opportunities for both local and foreign investors in tourist real estate. The UAE has become one of the leading global tourist destinations in recent years due to its ambitious vision and wide variety of attractions, combining modernity and national heritage.
With a steady inflow of millions of visitors annually, the potential for tourism investment has significantly increased, making tourism one of the key pillars of the national economy, starting from luxury hotels and entertainment complexes to cultural and sustainable tourism projects. It implies the purchase of tourist real estate in tourist locations with the aim of obtaining financial profit through leasing it or selling it in the future at a higher price. Such real estate usually includes hotels, hospitality apartments, villas, cottages, as well as resort complexes.
The report notes that the construction or development of hotels in tourist areas appears to be a successful investment, as they cater to tourists seeking temporary residence during the time of visitation to the region. Resorts provide a full spectrum of services to tourists, such as private beaches, basements, and restaurants, which makes them a sought-after place for vacationing.
Tourism investments also offer diverse opportunities, including hotels, tourist resorts, cottages, villas, and historical and cultural real estate. Again, revitalizing and updating historical and cultural real estate, such as palaces, castles, and temples to convert them into tourist attractions, also forms part of investments in tourism.
Investment analysis is a vital step towards making an investment decision. It includes estimating the expected return, necessary startup costs, rush and peak periods, which aids in making a successful investment decision corresponding to the conditions required by the investor and the targeted tourist area. It is also essential to consider all expenses related to the purchase and maintenance of tourist real estate, such as taxes, maintenance, insurance, and also decision-making regarding the management of the property.
