Buying a hotel in the UAE: features of the acquisition

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The United Arab Emirates occupies one of the leading positions in the world in terms of investment attractiveness, as it harmoniously combines political and economic stability, tax transparency, and the absence of corruption. You are provided with opportunities for apartments and villas investment in Dubai. Thanks to the constant tourist flow in the UAE, there are plenty of opportunities for running a hotel business. Many entrepreneurs are interested in investing in the business, as buying a hotel in the UAE to receive a stable guaranteed income.

Features of purchasing a hotel in the UAE

The hotel business is an interesting investment option, especially for those investors who do not plan to personally participate in the company’s operations, so their purchase in Dubai is in high demand. The process of buying a ready-made business as a whole will differ slightly from the purchase of apartments. However, of course, it has its own characteristics and indicators that you should pay special attention to when deciding to buy an inn in the UAE: 

  • the development of infrastructure (the presence of cafes, restaurants, shopping centers nearby, etc.) 
  • the location of the property (remoteness from the coast, airport, etc.), 
  • the popularity of the region, 
  • the operator, 
  • the financial performance of the facility.

That is why it makes sense for a potential investor to seek advice from an experienced agent who will help you choose the right property and make a deal.

What you need to know about buying a hotel in Dubai

Buying a hotel in Dubai is a great investment in the fast-growing resort real estate market. There are some features of the process of a purchase:

  1. Set the purchase criteria. What is a hotel for you – a short-term investment or a long-term business project? The main key factors also include: purchase price, location, management method, financial performance, Sharia compliance.
  2. Assess the development prospects of the property and its real value. Industry consultants will help you with this. There are various methods to determine value, such as discounted cash flow analysis, comparable sales, and others.
  3. Learn all about the competition. The industry in the Middle East is one of the most competitive industries. For a guest house to be attractive to tourists, it requires serious work and often serious investments.
  4. Conduct due diligence with the participation of lawyers and financial advisers. Look at the property through the eyes of the client. In doing so, you: a) make sure that the inn is an ongoing business and not just real estate; b) be able to solve the existing problems before the purchase.
  5. Conclude a sales contract with the participation of experts who will control and prescribe your guarantees and compensation, and ways to compensate for possible damage in the future.

These five points form the basis of a strategy when buying an inn in Dubai. Keep them in mind and your investment will pay off greatly.

Hotel apartments for sale in Dubai

Hotel apartments are a separate segment of the Dubai real estate market, located at the junction of residential property and guest house. On the one hand, they are ready-made apartments with all amenities, on the other hand, they are a more profitable investment asset serviced by world brands. Let’s talk about the advantages and disadvantages, the market situation and the fears of investors.

Hotel apartments account for 25% of the total hospitality market in the UAE.

The benefits of serviced apartments include higher returns and the guarantee of a sustainable income. The main advantage of hotel apartments is their complete readiness – they provide for all the little things and offer many services that are offered only in the inns. Thus, the cost of “furnishing” an empty apartment, including the repair and purchase of furniture, household appliances, as well as utility bills, will eat up the difference in price between it and apartments ready for occupancy. The latter are convenient for newly arrived residents of Dubai who do not have time to repair, and investors who do not need to constantly be distracted by the requests of the tenant to fix something.

Dubai Department of Tourism and Commerce Marketing divides hotel apartments into three categories: 

  1. standard, 
  2. superior, 
  3. and deluxe.

Real estate agency In Dubai

Despite the loyalty of local legislation to foreigners, purchasing a property in Dubai without professional help is not an easy task. To save yourself from wasting time and money, you should use the services of Ax Capital agency.  If you would like to buy a hotel in the UAE and don’t know where to start, just contact them at the website through any of the possible ways. They will be happy to help with the choice of an investment property, we will provide full information about the region of interest to you and the features of the purchase and sale transactions.

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