DAMAC Properties Leads the Innovation that Allows Individual Investors to Tap into Burgeoning Hospitality Sector

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DAMAC Properties Leads the Innovation that Allows Individual Investors to Tap into Burgeoning Hospitality Sector

Luxury property developer DAMAC Properties is providing distinctive opportunities for specific investors to use the growing and high-potential hospitality sector. The developer had actually made financial investments in hotels in prime areas in Dubai within the reach of a greater number of investors by decreasing financial investment amount, enabling consumers to buy an individual hotel space for a future stream of income and a free stay every year.

With an enthusiastic target set out by the Dubai Government to enhance its tourist figures to 20 million visitors yearly by 2020, a Compound Annual Growth Rate (CAGR) of 7 to 9 per cent in leisure and businesses visitors over the next 10 years is expected to be accomplished. Recent figures for the first two months of this year of 2.68 million visitors to the emirate vs 2.59 million for the very same duration in 2014, representing an almost 4 % boost, is currently a favorable indication of things to come for the period ahead.

Ziad El Chaar, Managing Director of DAMAC Properties, stated: "Dubai's status as a world-class vacation, business and leisure destination is unquestionably on a growth trajectory and gathering momentum by the day. With the upcoming Expo 2020 and other developments that will even more enhance Dubai's position on the world stage, we are preparing by developing and delivering more than 13,000 additional keys by 2021 to add to our existing portfolio of 2000 plus hotel keys and to Dubai's inventory of premium hotel rooms to meet the future demands for luxury accommodation.".

"In 2015, Dubai attracted 14.2 million tourists, up 7.5 % from 2014, and this year is on track to attain the objectives outlined in Dubai's Tourism Vision 2020. DAMAC Properties is doing exactly what has actually never ever been done prior to in Dubai, by making it very possible for individual financiers to own a hotel space in a prime location, with title deed, and reap a considerable return on investment in the world's fastest growing property investment market," he added.

The high-yielding investments in hotel rooms offered to specific purchasers begin at AED 440,000 only. Thinking about that prior to now, financial investment in the hotel sector was just practical for large investors, family offices or development companies due to the expensive financial investment associated with it.

With the new offering, specific revenue buyers and those who opt to fund their purchase will be able to own a system and belong to the thriving hospitality market. The possession promises to be profitable with an estimated 10 % return on investment annually, offering higher returns than residential or commercial real estate.

DAMAC Properties recently launched for sale freehold hotel spaces within the famous AYKON City job to be centrally located on Sheikh Zayed Road in Dubai's Golden Quadrant, overlooking the Dubai Canal, the up-and-coming prime area. The systems in AYKON City, beginning at AED 800,000, will be handled by AYKON Hotels & Resorts, one of the four hotel operators under the umbrella of DAMAC Hotels & Resorts. Other financial investment chances are likewise offered in DAMAC Towers by Paramount Hotels & Resorts, located in the Burj Area of Dubai, and featuring the world's first Paramount Hotel.

The chance to totally own a hotel room is brand-new to Dubai and the region. Investors who opt to own a hotel room can delight in high rental yield and property value retention. The hotel rooms are offered with full ownership rights with title deed, permitting investors to cost any time, unlike timeshare plans that have actually been popular in global markets and have just recently begun to be presented in Dubai. Investors will also not deal with the headache of managing their building as all the rooms will be entered into a 'rental agreement which implies the administration, management, bookings and upkeep is looked after by the hotel itself and a return on investment is recovered every year. The owner will also have rights to make it readily available for 2 weeks a year for individual usage.

DAMAC Hotels & Resorts consists of AYKON Hotels & Resorts, DAMAC Maison Royale, DAMAC Maison and DAMAC Maison De Ville-- four unique operators to target various client segments.