12.42 PM Monday, 25 September 2023
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:51 06:05 12:13 15:37 18:16 19:29
25 September 2023 $dmi_content.escapeHtml4($rs.get('weather.code.w${report.significantWeather.code}')) Max: 41 °

It's cheaper to live in hotel apartment than rent

By Shuchita Kapur

Living in a hotel apartment is now an option for Dubai residents as compared to renting on a yearly basis. Many hotel apartments in the city are now offering attractive rates, which can lure people to move to a hassle-free home, considering all the amenities being offered.

“In some instances it can make financial sense to rent a hotel apartment instead of a normal unfurnished apartment on an annual contract. This is because of the amenities and services offered. For example, the lower limit rent for a one-bedroom apartment in The Address Downtown is about Dh110,000 per annum and the lower limit annual rent for a one-bedroom in The Burj Residences is approximately Dh85,000.

When accounting for the furnishing, especially the quality of furnishing, and the satellite TV and the Internet services included in The Address Downtown, it can make sense, especially for a tenant looking for flexibility,” Jesse Downs, Director of Research & Advisory, Landmark Advisory told Emirates 24|7.

And it isn’t just the small-sized units that make financial sense. Even the bigger units in hotel apartments can be tagged as good offers but this is applicable if the tenant is looking to stay for a shorter duration.

“However, as the unit size and quality increase, so does the premium for a hotel apartment. For two-bedrooms and larger hotel apartments, the premium only makes financial sense if the tenant is looking only to stay one year or values the additional services and amenities. Naturally this is where tenant preferences are critical for understanding demand,” adds Downs.

“Quality is also a variable that needs to be considered. For example, for a high end hotel apartment in the Marina, such as The Address Marina, the rent is almost on par with comparable quality in the Original Six Buildings and developments such as Promenade. This is because the Address Marina is a relatively new building and owners have cut rates to improve occupancy. Similar quality is really found in established buildings with high occupancy, which maintain stable rents. The vast majority of buildings handed over in the past two years have not achieved comparable quality due to cost cutting measures implemented by developers, which has significantly impact the quality of fit-out in these new buildings,” elaborates Downs.

Living in a hotel apartment also depends on the kind of community the tenant is looking at in the city.

“This depends on the area/community - it may be cheaper to rent a hotel apartment in the Barsha/TECOM area, but definitely not be cheaper in the Marina or any other of the popular communities,” says Khushbu Bhatia, Leasing Consultant at Better Homes Short Term Rentals.

Also See:

Not paying housing fee? You have 6 months

Why renting a Burj Khalifa apartment is just ‘Mumtaz'

My life in Burj Khalifa: The insider's story

Northern Emirates rents set to drop further

Rents in 'old' Dubai remain firm