The behavior of today’s millennials varies vastly from the lifestyle of their parents. Few longer covet a job for life and a place on the property ladder, but instead look to invest their money exploring the world, moving from city to city depending on where life takes them. This is a global phenomenon which has seen the share of 18 to 34 years who own a home sinking to a 30-year low.
It may sometimes seem that this demographic has given up on home ownership, but it’s not the case. Most of this group are actually high-achieving and ambitious college graduates who have chosen to rent throughout their 20’s and early 30’s so that they can focus on their career.
The truth to this trend actually lies a little deeper and the reason the shift has occurred so quickly is twofold. Firstly, young people are more affluent now than they have ever been in history, and secondly, they have never had as little financial incentive to invest their money than any other time in history. Millennials have grown up seeing zero percent interest rates, the aftermath of the sub-prime mortgage crisis and the collapse of the banks.
So, if millennials no longer covet owning property, what do they want?
Hotel and hotel apartment developers have concluded that millennials want three things, customized experiences, digital convenience and flexibility.
This is especially true of millennials in Dubai who have become used to the futuristic vision of the city and its fast paced luxury lifestyle. The 3 main things that hotel apartments offer above traditional apartment rentals are:
- Hotel apartments offer flexible rental contracts and terms without the need to sign a year-long contract, protected by costly get-out clauses.
- They can move in straight away. Unlike most rental apartments in Dubai, hotel apartments are fully furnished and ready to move into immediately, without a frantic trip to Ikea.
- Room service is only one call away. Young professionals in Dubai are very busy and always on the move. Living in a serviced apartment or hotel apartment means that everything from the cleaner to room-service is accessible 24 hours a day.
It is clear that the trend for hotel apartments is here to stay and property developers are answering the demand with a number of exclusive projects across the city.
Dubai’s best hotel apartments:
Hotel apartments make sense for multiple market segments across Dubai, not just millennials, and this is why the city’s top real estate developers are offering hotel apartments, furnished apartments and serviced apartments to support a luxury lifestyle. Discover Dubai’s top 3 hotel apartments below:
1) Blue Waters
Home to the world’s largest observation wheel, the Blue Water project is located on a man-made island, just off Dubai’s coastline. The waterfront residencies include 10 mid-rise towers with 698 one, two, three, and four-bed apartments, and four five-bedroom penthouses. The residences at Bluewaters were released to the market in early 2017, offering a mixture of fully furnished hotel apartments and unfurnished residential apartments, starting at Dh1,900 per sqft.”
2) iSuites by Schon Properties
iSuites is a huge Dh3.2 billion joint venture between Schon Properties, a major Dubai based property developer and the Al Hamad Group, a construction company in the GCC. The hospitality development of 2,250 hotel apartments will be located in the Dubai Investment Park, adjacent to the Dubai Expo 2020 site and the Al Maktoum Airport. A branded international hotel operator will manage the hospitality services and investors are expected to receive a healthy yield of 12-15%.
3) The One Hotel, Business Bay
The One Hotel at Business Bay will be operated as Millennium Place. Offering a number of different room sizes and a bespoke hotel ownership income programme, the groups highly efficient central reservation system to ensure high occupancy rates is one of it’s key features.
The hotel apartment trend is definitely here to stay and with so much variety, it is clear why millennials are choosing to live in hotel apartments over traditional rentals and home ownership. Add to these figures, the growing numbers of tourists looking to stay in luxury surroundings and it is clear this is a development opportunity that will continue to boom.