UAE Real Estate Industry Research Report: Ken Research

How Is Uae’s Hotel Real Estate Market Positioned?

The UAE has long been recognized as a premier tourism and leisure destination. Over the years, tourism sector has experienced sustained growth, becoming a key component of UAE’s economy.

The UAE’s hospitality sector has experienced strong growth over the past decade. From 2007 to 2017, the sector’s direct contribution to the country’s GDP increased by ~% with employment rate growing by ~% in the same time period.

According to UAE’s Federal Competitiveness and Statistics Authority, the country welcomed ~ million hotel guests in 2017.

According to World Travel and Tourism Council, Travel and Tourism sector contributed ~% to the economy of the UAE in 2018. The UAE has many natural and environmental attractions, as well as a rich culture, enabling it to offer a diverse range of activities to its domestic and international tourists.

How Is Dubai’s Hotel Real Estate Market Positioned?

Dubai welcomed 15 million international tourists in 2019 as compared to 14.3 million tourists in 2018.

Dubai is on the 4th position in the world, in terms of total number of international overnight visitors preceded by Bangkok, London and Paris.

Dubai also kept its position at the top of the 2018 MasterCard Global Destination Cities Index in terms of Visitor’s Spending for the third consecutive year.

Dubai Tourism Strategy 2020 was launched in 2013 and is a strategic road map with the key objective of attracting 20 million visitors per year by 2020.

It involves broadening Dubai offering in events, attractions, infrastructure, services and packages and making it appealing to a wider audience.

Investment in the travel and tourism sector was AED ~ billion (USD ~ billion) which amounted to ~% of the total investments made in the country. It is forecast to rise by ~% per annum over the next 10 years to AED ~ billion (USD ~ billion) in 2027 which could be ~% of the total investments.

Current And Future Dubai Hotel Supply, 2013-2025f

The total number of available keys has increased from ~ keys in 2013 to ~ keys in 2018; growing at a CAGR of ~% over the same time period. Saudi Arabia has been the key source market for Dubai in these years, for instance, Dubai received 1.13 million visitors from Saudi Arabia in 2013.

In the future, with the increase in supply of hotel keys, the operators or service providers will compete on the basis of occupancy rates and average daily rates. We could witness Dubai transitioning from a predominantly luxury-tourism destination to a stable, yet more volume-driven destination. The supply is expected to increase from ~ number of room keys in 2019 to ~ number of room keys by 2025F; growing with a CAGR of ~% over the same time period. According to statistics released by Dubai’s Department of Tourism and Commerce Marketing (DTCM), Saudi Arabia (~), India (~), the UK (~), the United States (~), Russia (~), Kuwait (~), Germany (~), Oman (~), Iran (~) and China (~) were the top 10 countries from where tourists arrivals was the highest in Dubai during the period January-December 2018.

Dubai Current And Future Hotel Demand (2013-2025f)

The demand for hotel real estate increased as a result of practical government initiatives in place. The demand increased from ~ number of available keys in 2013 to ~ number of available keys in 2018. The major Government initiatives were focussed towards promoting real estate developers and tourism sector in the country.

Supply And Demand Gap

Current Outlook: Dubai has faced an oversupply situation throughout the review period as the number of available room keys exceeded the demand. The supply-demand gap has widened due to availability of improper stock such as 2-Star and 1-Star hotels which lack demand owing to changing preferences of people towards staying in a comfortable hotel with all luxurious amenities.

Future Outlook: Dubai is expecting supply of ~ keys by 2025F. The supply is supported by the vision of the Government of Dubai to pull more demand by promoting tourism and business activities in the Emirates.

Key Segments Covered

UAE Real Estate Market

By Geography:


Abu Dhabi






UAE Office Real Estate Market

By Type:

Premium Office

Type A Office

Type B Office

UAE Retail Real Estate Market

By Type:

Super-Regional Mall

Regional Mall

Community Center

Neighborhood Center

Convenience Center

UAE Residential Real Estate Market

By Type:



UAE Hotel Real Estate Market

By Type:

1-3 Star Hotels

4 Star Hotels

5 Star Hotels

Hotel Apartments (Deluxe/Superior/ Standard)

Key Target Audience

Real Estate Developers

Independent Investors

Real Estate Consulting Companies

Third Party Real Estate Companies

Independent Architects

Industry Associations

Government Agencies

Time Period Captured in the Report:

Historical Period – 2013 - 2018

Forecast Period – 2019F – 2025F

Real Estate Developers Covered:

EMAAR Properties

DAMAC Properties

Nakheel Properties


Aldar Properties

Manazel Real Estate

Aziz Developments

Case Studies Covered:

Sense-R (Virtual Reality)

Take Leap (Virtual Reality)

AirBnb (Shared Economy)

Property Finder

Bayut UAE

Abu Dhabi Mall

Yas Mall

Marriot International Group

Novotel Abu Dhabi

Surf, Abu Dhabi Creek Harbor

Emaar Business Park

Key Topics Covered in the Report

UAE Residential Real Estate Market, 2013-2025

UAE Retail Real Estate Market, 2013-2025

UAE Hotels Real Estate Market, 2013-2025

UAE Industrial Real Estate Market, 2018

UAE Co-working Space Snapshot

Disruptive Technologies Overview: PropTech in UAE Real Estate

Growth Drivers and Challenges

UAE Real Estate Market Major Real Estate Developer Profiles

Supply and Demand Gap Analysis, 2013-2025F

Major Projects Launched in Different Real Estate Markets

Recommendations about Success Factors for Developing Different Real Estate Markets

For more information on the research report, refer to below link:

UAE Real Estate Market

Related Reports

Saudi Arabia Real Estate Market Outlook to 2025 – By Retail Real Estate Market (Super-Regional Malls, Regional Malls and Community Centre), By Hotel Real Estate Market (3 Star, 4 Star, 5 Star and Other Hotels), By Office Real Estate (Premium Offices Type A and Type B) and Residential Real Estate Market (Apartment, Villas, Traditional Houses and Others)

Australia Real Estate Market Outlook To 2023 – By Residential (Apartment & Villas), By Retail (Regional, Sub-Regional, Neighborhood, CBD, Large Format Retail And Others), By Office (Type A, Type B And Premium Offices) And By Hotel (3 Star, 4 Star, 5 Star And Other Hotels)

Singapore Real Estate Market Outlook to 2023 - By Residential Market (New Sales, Re-Sales and Sub-Sales), By Retail Market (Private and Public Retail Space), By Office Market (Private and Public Office Space) and By Hotel Market (Gazetted and Non-Gazetted Hotels)

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