Dubai is experiencing a surge in the popularity of long-term hotel stays, driven by the skyrocketing rental prices that are prompting residents to seek more convenient alternatives. In the midst of a booming real estate market, where rental costs have shot up by a staggering 28 percent and show no signs of slowing down, experts are taking notice of this trend.
Long-stay hotels and hotel apartments, once primarily preferred by digital nomads, newcomers to the city, and frequent business travelers, are now attracting a wider range of tenants. These individuals are enticed by the idea of enjoying the comforts of a luxurious home without the added hassle of furnishing a property to their liking.
IHG Hotels & Resorts properties across Dubai have noticed the growing popularity of this trend. For instance, as of July 2023, Staybridge Suites Dubai Al Maktoum, a sought-after long-term stay destination, has consistently maintained an occupancy rate of 60 to 70 percent among its 244 units. Similarly, InterContinental Residence Suites Dubai Festival City has seen 60 percent of its 341 luxury suites consistently rented on a long-term basis.
According to James Britchford, Vice President, of Commercial IMEA at the Intercontinental Hotels Group, the increase in long-stay hotel living is driven by Dubai’s population growth and significant rent hikes, reaching as high as 28.5 percent. He noted that Dubai’s record-breaking influx of travelers in the first half of 2023, coupled with over 50,000 individuals relocating to the city, has contributed to the renewed interest in housing options and the rise of progressive accommodations like long-stay hotel apartments.
Dubai’s initiatives to support entrepreneurship have further fueled the demand for flexible living arrangements. This allows digital workers to live in hotel apartments seamlessly, without the complexities of exploring residency options, navigating lease contracts, handling paperwork, dealing with hidden fees, or going through extensive verification processes.
The long-stay hotel living trend initially gained attention during the pandemic due to its convenience, affordability, and flexibility. However, it has gained even more momentum as rental prices continue to surge, as explained by Fibha Ahmed, Sales Director at Bayut and Dubizzle. Luxury living concepts, such as those offered at Jumeirah Marsa Al Arab, are particularly attractive to investors and are reshaping the landscape of luxury living in Dubai.
The impressive sales figures not only reflect the unprecedented demand for exclusive residences in Dubai but also showcase investor confidence in Jumeirah’s ability to create exceptional lifestyle destinations that prioritize easy living in captivating surroundings. Currently, Dubai stands as one of the most dynamic luxury property markets globally, with the branded residences market projected to grow by a significant 73 percent by 2030.