Dubai Marina's Premium Hotel Plots Are Up For GrabsThursday, May 31, 2012
Residents of Dubai Marina are soon going to see a new array of hotels in their community because four commercial plots are currently available for sale and 2 four star hotel owners are seeking new buyers for their hotels.
Advertisement for two unnamed hotels in Dubai Marina for sale have been posted. Other than these unnamed property units, a large number of plots are up for sale for hoteliers, who want to make an entry into this market. Price range of these commercial plots varies between AED 120 m to AED 142 m. Land owners of commercial plots are turning towards online portals to get good buyers for their plots and properties. It is because there are only a small number of investors willing to invest in hotels. Therefore, it becomes really hard to find good buyers for hotels and commercial plots dedicated to hotels.
However, one should not forget that hotel sector was one of the best performing real estate sectors during the last year. City based hotels saw a rise in occupancy rate from 5 percent to 90 percent whereas beachfront hotels saw a drop in occupancy rate by 3 percent to 83 percent. A consultancy firm disclosed that Dubai has more than 13,300 hotel rooms in the construction pipeline whereas Abu Dhabi has 5,298. According to a real estate expert, the city will witness an array of hotels being put up for sale because owners do not want to compete with newer entrants of hotel market and they choose to quit.
It is an investment strategy that people sell properties after a few years of purchase, when the prices reach to the optimum profit level and then move on to buy another property or asset with the cash generated.