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Writer's pictureNarcis Marian

Dubai Real Estate market: Q1 and Q2 sales performance for hospitality assets

In this post we will have a closer look at how the hotels assets, hotel rooms and hotel apartment rooms have been transacted in H1 2022.


Table of content:


team working on a plan looking at dubai hospitality real estate market

General overview of the hospitality market


Dubai has welcomed 6.17 mil overnight visitors from January to May 2022 according with Dubai Tourism and Commerce Marketing data, driven by strong demand in the first 3 months from Expo 2020 global event. These numbers represent and increase of 197% from the same period in 2021, when Dubai received 2.08 mil visitors.

  • 52% increase in ADR in YTD May 2022 vs. YTD May 2021

  • 85% increase in RevPAR in YTD May 2022 vs. YTD May 2021

Till April 2022, Dubai hotel and hotel apartments rooms supply, has increased by 23% to 140,000 rooms, from 114,000 rooms in April 2019 and 9% increase YoY vs 2021. London had only 2% increase in supply in the same period between April 2019 to April 2022.


Q1 hotel rooms and hotel apartment sales transactions


In Q1, majority of the volume have been recorded on hotel apartment units with 468 sales, and 204 sales transactions for hotel rooms units. The overall value have surpassed 1,5 Bil AED, with 85% of the value been traded in hotel apartment units.

graph with Q1 2022 sales for hospitality assets

If we break it down in to the projects that had the highest transaction value, 74 Mil AED were sold in the 4* The One Hotel, located in Business Bay and developed by The First Group, which will open in Q3 2022.

top projects in Dubai by real estate sales transactions value in Q1 with hotel rooms

For hotel apartment units, The 8 project located in Palm Jumeirah had a value of 341 Mil AED in sales, followed by Jumeirah Gate (The Address Beach Resort) worth of 337 Mil AED in sales.

top projects in Dubai by real estate sales transactions value in Q2 with hotel apartments

Q2 hotel rooms and hotel apartment sales transactions


In Q2 the trend continued on the same pattern, were 89% from the overall value of 1,3 Bil AED were traded in hotel apartment units

graph with Q2 2022 sales for hospitality assets

Hotel rooms units in Viceroy Hotel Palm Jumeirah 25 mil AED in sales, followed by newly opened Paramount Tower Hotel & Residences in Business Bay, with 21,4 mil AED worth of sales

top projects in Dubai by real estate sales transactions value in Q2 with hotel rooms

Hotel apartments units in Jumeirah Gate (The Address Beach Resort) had a surge in demand and recorded a 374 mil AED in transactions value

top projects in Dubai by real estate sales transactions value in Q2 with hotel apartments

Final thoughts


Riding a wave of strong overall demand in Dubai hospitality real estate market, which is the result of hard-earned city-wide confidence from international audience, build up since the pandemic days from local government initiatives, the hospitality sector in poised for an ongoing growth as people are eager and ready to travel again.

Investors should remain cautious tough, on the current FED interest rates hike cycle, an rising inflation and an equity market draw-down, indicating recessionary concerns.


In a rising inflation climate, real estate investments can offer attractive returns.

Pictet Bank - Asset Management


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*Source: DLD

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