Do you know that tourism is a great connection to the property market and Real Estate Developers in Dubai can help. Do you know what the growing acclaim of a city as a hot tourist spot could open up the possibility of investing?
It’s true that Abu Dhabi is currently writing this story.
The city in 2023 was home to more than 24 million tourists, with a rise of 27% in hotel stays as well as a boost of 54% in tourists from abroad. These numbers go beyond simply numbers. They show how quickly Abu Dhabi is growing as an international hotspot.
And you know what?
The surge in tourism doesn’t only aid hotels, it’s causing a shake-up in the property market, providing you with an opportunity to make a profit.
How Tourism is Impacting Real Estate
Tourism is like a domino effect in the property sector. Let’s take a look into how the growth in tourism can impact different levels of the property industry:
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Vacation Homes And Short-Term Accommodations
First the improvement in tourists will mean increased short-term lodging requirements. In areas such as Yas Island and Saadiyat there is a demand for holiday homes, which allows homeowners to benefit from Airbnb.
Based on AirDNA, Abu Dhabi boasts active listings of 962 up from 200 short-term rentals as of June 2021. Vacation properties are increasing.
Changes in the seasons are not affecting the market, where 33% of all homes on the market can be booked for one-to-90 nights as well as 30% of them for between 91 and 180 nights.
Recently, travelers require an excellent experience. They aren’t just looking for rooms in hotels but are looking for an experience that is luxurious.
Short-term rentals give the luxury. In turn, the rates of return on properties that are short-term rentals in areas that are popular can reach 6 to 7 percent per year which makes it an excellent opportunity for investors.
Events that are popular, such as Formula 1 Grand Prix, four nights of Coldplay performances and bigger-than-life winter festivals attract thousands of visitors and make short-term rentals sought-after with high occupancy rates all through the year.
In addition, with the latest rules of the Abu Dhabi Department of Culture and Tourism and Abu Dhabi Department of Culture and Tourism, the challenge of renting a home for short-term rentals is now easier for owners of properties.
This means a new benefit of convenience and increased profitability for investors. These rules permit property owners to look for an entry into rent markets to assure an excellent standard which creates Abu Dhabi an even more appealing tourist destination.
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Long-term Rentals
Tourism isn’t just about excursions; it’s also about the opportunities it offers. When the tourism industry grows, it creates employment and attracts professionals, including hoteliers and cultural directors in Abu Dhabi.
This has resulted in a rise in the demand for rentals that last for a long time.
The Emirate received 49,135 residential rental leases during the first quarter of 2024.
This is an unprecedented 102% increase over the same time in the previous year, compared to 24,811 leases. Long-term rentals can be considered as stable investments because they provide steady monthly incomes and good occupancy.
For instance, Al Raha Beach has experienced a massive rental growth, as well as a high increase in rental demand due to the fact that it is located close to entertainment and business hubs as well as an international airport.
and the Abu Dhabi Real Estate Centre (ADREC) has just launched an index of rental prices to provide transparent pricing of rental properties.
It’s beneficial for tenants to be finding fair rental rates, and landlords to be armed with information to make educated decisions and also to maintain stability on the market.
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Buying Trends
There is a rising trend of investors and tourists. After having experienced the culture, comfort and excitement that is Abu Dhabi, many visitors are investing in homes here.
If it’s an apartment that is waterfront located on Saadiyat Island or a luxury villa located on Yas Island, these are not just about living but about the returns.
Property located in Abu Dhabi, especially in Yas Island and Saadiyat Island has seen a rise in sales.
The prices of sales for Yas Island went up by 3.41 percent per square foot during the third quarter of 2024. It’s not long for tourists to become enthralled by the white sandy beaches, top-of-the-line dining experiences and finally make an investment that will last for a long time.
Infrastructure Accommodating Growth in Real Estate
Development of infrastructure is a key boost to the real property market.
Connectivity and development of facilities drive the government’s attention on property value. Abu Dhabi has grown into an attractive destination for tourists and an investment opportunity.
This was due to major modifications made to Abu Dhabi International Airport, new roads, as well as public transportation.
The newer Abu Dhabi International Airport will handle twice as many visitors in 2030, bringing the total to 45 million a year. This will make it much easier for investors and tourists across the globe to visit Abu Dhabi.
The new section at the airport is going to make travel more enjoyable for travelers. It will attract more expensive tourists, and also connects with the luxury real market for real estate.
Upcoming Projects to Watch
Al Qana
With a marina, an aquarium and a variety of restaurants, Al Qana will be one of the most sought-after destinations for leisure which will boost the value of property in the area.
Additionally, the fusion of leisure and entertainment residences will create Abu Dhabi a family-friendly destination.
Saadiyat Cultural District
The new museums and places of interest will help Saadiyat Island’s standing as a cultural hub that draws in visitors and property investors.
Major projects like Zayed National Museum, which will be part of that of the Louvre Abu Dhabi’s development and will transform Saadiyat Island’s image and transform the United Arab Emirates’ capital into a hub of culture.
Why It’s the Right Time to Invest
The Tourism Strategy 2030 is yet another boom that is coming into the books with government initiatives that can make investing easier. It’s a right to contact Real Estate Developers in Dubai.
The attendance of the high-end entertainment center the Sphere Abu Dhabi, is expected to bring in more real estate investment opportunities as well particularly in the nearby properties.
The Golden Visa program that offers permanent residency to investors as well as 100 foreign ownership in a few regions, Abu Dhabi has removed some of the obstacles that once impeded foreign real property investors. This will improve the demand of expatriates for homes and investment properties.
Conclusion
Tourism isn’t just boosting the economy, but it is also altering the foundation of real estate. It doesn’t matter if it’s luxurious villas or cheap apartments, there’s something for the investor who is smart.
The city’s tourism strategy 2030 we’re more than just thinking about more visitors but an entire change in the way we transform Abu Dhabi into a world-class tourism and investment destination.
Govt-backed initiatives, welcoming visa regulations as well as a rapidly growing tourism industry Abu Dhabi is no longer only a destination to visit and a destination to invest. Contact Aizn Developers