In Dubai, the lodging industry is revealing itself as the golden fruit of the country real estate developments and extensive marketing.
Although the number of players entering the market is growing there are still numerous opportunities available for successful entries and thanks to the lodging industry’s recent performance and outlook, financing for service apartments construction or investment is becoming more readily available.
Service Apartments Category
The category of service apartments tend to do repeatedly well achieving the requirements of both travelers and business people identical with an above average mixture of short as well as medium term rental accommodations.
Presuming most of the hotels are benefit from the hotel accommodation market, which been increase the rental rates to a very high level and even the economic crisis was hitting the city recently, but there are generally no underperforming properties in Dubai. Due to this, the government is now thinking of having the private sectors to convert some of the residential property into commercial.
Even though following the development of service apartments appears to be like a smart investment, but there is still risk in which you would face a vigorous competition with both local and foreign companies. And although with the condition of current market your project overview may seem to be good today, by having few more identical projects planned for a similar market may make your forecast immediate turn into a different reality.
Always keep in mind, the current accommodation providers in the market may very well set up a price war by reducing the rental rates drastically, and by doing so they will be able to keep their customers stay far away from your brand new property.
No matter the reason the accommodations business will definitely remain a thrilling industry within the next several years, with lots of possibilities intended for investments on hotel as well as hotel apartment.
A compound of villas or a limited size development in between 2 to 5 floors near the beach front will possibly be the ideal choice to start with and if ever sustained by a compelling sales & marketing plan and top management, a small size of development can also has the possibility to become a big success.
Small Size Projects Also Can Get Success
Keep in mind that it is not necessary to be enormous to be success in certain project. The matter of fact is that even a small size property is going to end up being observed by the visitors as private and convenience, something somewhat distinctive in Dubai in reality a priceless market gap could be recognized in relation to small projects under the 3 or 4 stars group and the possibility of profitable new entries is perceptible.
For new comers thinking about checking out the investment in serviced apartments, it’s recommended to put a thorough increased exposure of cautious market analysis and research on the interested property to ensure that tactical plans could be produced keeping track of both investment and returns.
Those strategies and plans should be include of: database utilization, industry networking, internet visibility and interaction, telemarketing, media design and promotions, and many more.
Besides, Its as well important to determine and hire a marketing and management agency for the property that can expertly take care of every aspect associated with the actual set up and running of the business from the hiring people, staff training, routinely marketing and management requirements, awareness program as well as building up the brand.
A small size project tend not to trigger any interest among those large and more developed global franchise even so it is often very appealing to the marketing and management agencies that happen to in search for the probability to invest in Dubai market and wish to bring in their sound international expertise and business relationships.
