Estimated Dh14bn by 2020 generated from Timeshare in Dubai

It is anticipated that by 2020 Dubai’s timeshare market will contribute Dh14 billion to the emirates economy, as it is considered the most rapidly growing timeshare market internationally. Dubai’s timeshare market is on a rise due to a major boost in tourism, hotel rates and real estate property prices, which are forecasted, will carry on for the next 10 years according to the results of a new study.

Dubai is one of the top tourist destinations of our times as well as being a business hub. Due to this numerous visitors, either tourists travelling for leisure or businesspeople visiting for business matters, frequently visit the Emirati city. The number of people travelling to Dubai is higher than the majority of other hot tourist destinations in the world. Thus, Dubai has become a great jurisdiction to invest in the timeshare market.

Dubai’s prices concerning real estate property have been increasing fast. Thus, many cannot afford to invest in a second property in Dubai, either to use as a holiday or second home. Financially speaking, investing in the timeshare market is ideal for those who travel to Dubai regularly and usually stay at a Dubai hotel.

Based on the AFH report named Demand Outstripping Supply, Dubai’s timeshare sector experienced a 15%-20% increase during 2013 and grew an additional 30% during 2014.

The results of the report revealed that the boost in Dubai’s timeshare market is encouraged by the fact that international economies are on the recovery path as well as the UAE’s vigorous growth, which is especially evident by its growth in tourism and hospitality industries and its real estate property that is on the increase.

Dubai’s timeshare sector experienced a significant enhancement during 2014 due to international markets maintained recovery and boost in hotel and property prices in many tourist hubs. 

High Demand-Low Supply

The report also reveals that demand for timeshares within the UAE is significantly more than the supply. Therefore, those interested to invest in the timeshare industry look elsewhere.

The timeshare industry in the UAE has been rapidly increasing yearly at about 80%-90%, while the amount of timeshare properties available are significantly less, thus demand and supply do not balance.

The most apparent reason construction companies and developers have not been able to increase the supply of timeshare properties is that the legislation concerning the timeshare sector has not been finalized.