Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

Driven by a steady influx of tourists from three top source markets, including India, Russia, and Oman, the UAE’s hospitality sector recorded a remarkable buoyancy in the first quarter of 2023 to provide a major fillip to the emirate’s real estate sector.

This year, Dubai’s hotel stock climbed to 150,000 keys with the delivery of around 2,000 keys. Propelled by increased demand, around 8,000 keys are expected to be delivered in the year. In comparison, Abu Dhabi’s hotel supply completions were limited, with around 200 keys added to the existing inventory, bringing the total stock to 32,500 keys. The capital’s future supply pipeline for the year remains modest at around 200 keys, according to the latest JLL UAE Real Estate Market Overview Report.

In the first two months of 2023, Dubai welcomed around 3.1 million tourists, representing a 42 per cent increase as compared to the same period last year, reflecting the exceptional resilience of the travel and hospitality sector, said the report.

While total retail stocks in Dubai and Abu Dhabi rose to 4.7 million sq. m. and 3.11 million sq. m. respectively, in the first quarter, off-plan transactions dominated the residential segment, outperforming existing properties in terms of value and volume