Dubai Real Estate, Dubai Properties
Cheaper Dubai Hotel Rooms and Dubai Offices rates has positive impact
Hotels in Dubai continue to struggle with profits due to higher competition and supply of hotel rooms. However Dubai hotels have reported good occupancy which can be attributed to lower room rates. Over the last two years available rooms have jumped causing greater competition and lower prices. A typical five star Dubai hotel room rate is still significantly below the rates from 2008. On the upside, there has been an increase in hotels in a category that is most welcome by tourists, the non-luxury category. There have been more 3 and 4 star hotels openings that do not offer the grand luxury that Dubai is typically associated with but are none the less high class by international standards and most importantly affordable by the middle class.
Dubai office space are amongst the worst hit in terms of price of the properties in Dubai. The current Dubai Real Estate scene is one of mass Dubai office supply. In addition, there are huge volumes under construction with little hope of demand keeping pace. Business Bay and Downtown Burj Dubai areas lead the way with a plethora of Grade A office space under construction as well as buildings that have been recently completed. A positive aspect in this is that the new buildings are being occupied with businesses albeit slowly and not fully. The majore complaints with these buildings are that the surrounding areas and the infrastructure is not complete. In some areas of Business Bay high quality new buildings occupy areas that are not fully connected by roads and a small journey over gravel and sand is required to reach the building.
However the cheapest high quality offices can be found in Jumeirah Lake Towers. Office prices, per square foot, are significantly cheaper than apartments. The area is served by a metro station and occupies and excellent location on Sheikh Zayed road opposite the Dubai Marina and adjacent to the Greens and Media City. One of the principal reasons for the lower prices, aside from the oversupply, are that companies are required to be registered in the DMCC free zone that runs Jumeirah Lake Towers. The process can be expensive due to the high capital required by the DMCC as a holding bond and the process is very slow taking around 2 months for the documents to be issued.
The lower prices seen in 2011 mean that Dubai Properties and in particular office space continues to become more affordable for tenants and businesses. This is good news for businesses and residents alike. Cheaper Dubai hotel rooms encourage higher number of tourists to visit Dubai. The greater tourism spend further add a positive effect to the Dubai economy.
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