More than 800 apartments in Damac Properties' Aykon City development have been sold says the company as Dubai hotel occupancy shows supply resilience
An average of 5 serviced hotel apartments and residential units a day have been sold as part of 800+ mixed use unit sales in Damac Properties' Aykon City development over the last 12 weeks, the company said in a statement.
Investors of almost 50 nationalities from almost 40 countries including China, India, and the UK have purchased units within the project that overlooks the Dubai Canal on Sheikh Zayed Road. The announcement follows sales events in Dubai and Abu Dhabi on Saturday. A phase two sales event is planned before the end of Ramadan.
Ziad El Chaar, managing director of Damac Properties said "It is testament to the desirability of Dubai's real estate market, especially in the luxury serviced residences sector. The demand for the high-end, refined living in AYKON City is exceptional."
The Aykon City development will feature Aykon Dare on the 80th floor of the hotel, which will allow guests to take an adrenaline-fuelled walk around the outside of the tower's roof, providing panoramic views of the city and a glass-floored viewing capsule.
The project also includes the Aykon Plaza, which features restaurants, cafes and a beach club, plus a spa and luxury shopping outlets.
"Innovative luxury products in prime locations are driving the resurgence in the Dubai property market, with quality projects experiencing high demand from international buyers," said El Chaar. "Dubai prices remain very competitive when compared to other international cities, and as confidence returns to the global markets, we are seeing a surge in investment."
Dubai hotels performance
Hotels in Dubai managed to maintain occupancy at 87 per cent in the first four months of 2016, at the expense of a significant drop in average room rate, according to the latest HotStats survey.
The average room rate of Dubai hotels fell by 9.6 per cent year-to-date, equivalent to a $31.87 decline in the first four months, even as the hospitality sector continued to expand its supply during the first quarter, and witnessed the addition of around 1,500 new hotel rooms and serviced apartments. In the 36 months to April 2016 on a rolling 12-month basis, profit per room at Dubai hotels declined by 22.7 per cent, the survey shows.
The addition of around 1,500 new hotel rooms and serviced apartments in the 2016 first quarter contributed to a further increase in Dubai's hotel stocks.
"As a result of the movement in occupancy and achieved average room rate, year-on-year revenue per available room (RevPAR) for Dubai hotels fell by 10.5 per cent year-to-date, to $258.04 from $288.24 in the same period in 2015," HotStats said.
Nevertheless, analysts remain upbeat about the outlook for the hospitality sector. According to Market Monitor released by PKF The Consulting House, despite the current slowdown, the outlook for Dubai tourism remains positive as a number of new upcoming attractions and events are expected to sustain high demand indicators.
According to official statistics released by DTCM, in the first quarter, Dubai accounted for 4.1 million overnight visitors an increase of 5.1 per cent year on year.