Dubai’s tourism industry has long been a driving force behind the city’s economic growth, and in recent years, its impact on the real estate market has become increasingly significant.

As the city continues to evolve and expand its tourism offerings, a new wave of investment opportunities has emerged captivating visitors from around the world and converting them into investors. Mahmoud Yousif, a seasoned hotel manager turned real-estate expert at RichKey Properties, shares valuable insights into the key factors driving Dubai’s rapidly evolving landscape.

With 13 years in hospitality working with prestigious names like Jumeirah Bab Alshams, Address Hotels, Raffles The Palm, and Sheraton, Mahmoud made the bold decision to pivot into real estate driven by the booming property market in Dubai.

“The city’s ability to transform emerging areas into prime investment hotspots is incredible, and it was an opportunity I couldn’t miss,” – Mahmoud Yousif

We all know about Dubai’s hot-spots along the waterfront, but how is tourism transforming lesser-known areas into attractive tourist and investment hubs?

MY: There’s no question that tourism-related developments such as luxury hotels, resorts, and theme parks play a significant role in boosting Dubai’s real estate market. For instance, the launch of high-end resorts on Palm Jebel Ali, the expansion of Dubai Parks and Resorts, and the addition of iconic attractions like Ain Dubai are all creating a demand for nearby properties. As these developments attract visitors, short-term rental demand increases, which in turn appeals to investors seeking strong returns and high occupancy rates. To break it down:

• Higher short-term rental demand: Tourism increases demand for vacation rentals, offering attractive returns for investors.
• Rising property values: Proximity to luxury hotels and popular attractions drives up property prices.
• Economic growth: Tourism projects create jobs, driving income and increasing housing demand.
• Government-funded infrastructure: Government projects such as the Dubai Metro expansion and the high-speed Etihad Rail enhance accessibility and livability, which in turn attracts more investors.
• Luxury lifestyle: Resorts, marinas, and golf courses elevate the desirability of properties. Areas like Downtown Dubai, Palm Jumeirah, and Dubai Marina have experienced notable real estate growth due to tourism, offering investors opportunities for high returns.

What are the key factors driving tourists to transition into real estate investors in Dubai, and how are developers and authorities leveraging these factors to create appealing investment opportunities?

MY: The combination of a luxurious lifestyle, high rental income potential, and investor-friendly policies are some key factors turning many tourists into real estate investors. Dubai’s government actively promotes investment through off-plan payment plans, residency incentives, and tax-free rental yields. Developers have responded by offering flexible payment structures, including post-handover plans, to make property ownership accessible to a global audience.

Dubai’s high rental yields (6-10%) and Golden Visa program also play crucial roles in attracting international investors. The ability to own property in prime freehold zones, combined with year-round tourism, makes Dubai an appealing place for investors seeking consistent returns. Mega-projects like Dubai South, Expo City, and the Museum of the Future further enhance Dubai’s appeal as a global real estate hotspot.

How is the UAE’s Golden Visa program affecting investments in Dubai’s real estate market?

MY: The UAE’s Golden Visa program, offering long-term residency to investors, has significantly boosted foreign interest in Dubai’s real estate market. With a minimum property purchase requirement of AED 2 million (about USD 454,000), the program attracts high net-worth individuals seeking stability and the opportunity to live, work, and invest in Dubai.

The Golden Visa constinues to drive demand for property ownership and has diversified the investor base, expanding interest in freehold zones. This has made Dubai more appealing as a destination for long-term residency and wealth preservation, transitioning the city from a short-term investment hub to a sustainable real estate market.

How are real estate developers in Dubai incorporating tourism-focused amenities (if any) into their projects to attract investors and tourists alike?

MY: Real estate developers in Dubai are increasingly partnering with global brands to create tourism-oriented residential communities. Projects like Emaar Beachfront, featuring private beaches and marina access, and DAMAC Lagoons, which offers Mediterranean inspired leisure attractions, cater to investors seeking properties that offer both lifestyle and high investment potential. These communities, offering luxury, leisure, and high quality living spaces, are thoughtfully designed to attract visitors who may eventually become residents.

What is the relationship between Dubai’s tourism growth and the rise of short-term rentals, and how is this impacting the real estate market?

MY: The growth of platforms like Airbnb has made short-term rentals a significant competitor to traditional hotels. This shift is having a noticeable impact on the hotel industry, as tourists increasingly opt for vacation homes in sought-after locations like Downtown Dubai, Jumeirah Beach Residence, and Business Bay. With Dubai’s growing conference and events scene, short-term rentals are expected to continue thriving, particularly in new neighborhoods like Dubai South, Motor City, and Sports City, which are strategically located near key attractions and infrastructures like the new airport.

How are digital platforms being used to target tourists and promote Dubai’s real estate market to a global audience?

MY: Dubai’s real estate market has long embraced digital platforms to reach a global audience. Social media, online property marketplaces, and virtual tours are undoubtedly powerful tools that developers and agents use to showcase properties and attract international investors. Instagram, YouTube, and TikTok are popular platforms for promoting Dubai’s luxury properties, with influencers and content creators being a key part of this strategy.

The UAE’s Golden Visa program for content creators has also drawn influencers to Dubai, where they help promote the city’s tourism and lifestyle offerings. This, in turn, naturally complements the ongoing efforts of the local tourism board, attractions and tourism providers who are promoting the range of experiences available. As such, developers and agencies who have jumped on the bandwagon to do the same, continue to enjoy enormous success.

What are the implications of Dubai’s growing reputation as a hub for tourism and real estate investment on the city’s economic diversification and long-term sustainability?

MY: Dubai’s push to balance tourism and real estate investment contributes to its long-term sustainability. The government’s initiatives to develop cultural districts, eco-tourism hubs, and smart cities ensure the city remains attractive beyond its traditional luxury appeal. Soon, we’ll have more metro lines linking every part of Dubai, as well as the upcoming high-speed Etihad Rail connecting the whole of the UAE and beyond. There’s also The Loop, a 93km sustainable urban highway. These factors collectively contribute to the city’s appeal and economic viability, ensuring a long-term sustainable tourism industry.

What do you think makes Dubai the ultimate playground for tourists? What innovative attractions are being developed to enhance tourist experiences, and influencing the real estate market?

MY: Dubai is known for constantly reinventing itself with new, innovative attractions. Notable examples include Expo City Dubai, the Dubai Mall (the most visited shopping destination globally), and the Museum of the Future. New projects like Dubai Reefs, a floating ecotourism destination, and Creek Tower, which will soon be the tallest building in Dubai, keep the city exciting for both first-time and repeat visitors. These developments not only enhance the tourism experience, but also drive real estate demand, creating a virtuous cycle of investment and growth.

What hidden gems await visitors, and how can they experience the authentic spirit of Dubai beyond its iconic landmarks?

MY: Beyond the already well-known landmarks, Dubai offers visitors a chance to experience its rich history and culture. Hidden gems like Al Seef, a historic district on Dubai Creek, and Al Fahidi, with its art exhibitions and local cuisine, offer an authentic taste of Dubai. Nature lovers should also explore desert conservation areas like Al Marmoom for a different side of the emirate.

What do you like most about Dubai as a visitor and as a resident?

MY: Having lived in Dubai for many years, I appreciate the city’s blend of modernity and tradition. Dubais is an extraordinary place to live and visit. As a resident with a young family, I value the safety, infrastructure, and investment opportunities. As a visitor, I enjoy the endless attractions, dining experiences, and vibrant lifestyle that make it impossible to get bored – there is always something happening every day!

What are your top tips for travellers visiting Dubai – both for first timers and repeat visitors? 

MY: For first time visitors, especially those with limited time, exploring the Downtown area for Burj Khalifa, the Dubai Fountain and Dubai Mall are a must, along with Palm Jumeirah, and Dubai Old Village. For families the Global Village, Aya Universe and Atlantis Aquaventure are great options. Repeat visitors should explore the likes of Bluewaters Island, Dubai Creek Harbour, and even Hatta for a different side of the city. Food lovers should visit local places like the Arabian Tea House and Al Khayma Heritage Restaurant in Al Fahidi.