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Tense competition, similarity of real estate, tourism products additional impetus towards introducing innovative products

 

Al Mazaya: Island beach resorts woo luxury seekers across the region

The property sector plays a major role in determining the size and objectives of the majority of projects across multiple economic sectors.

In this regard, the recorded expansion in the development of island beach resorts around the world represents a quantum leap towards selective, high-performing investments that target those segments of society seeking sheer luxury, opulence and exclusivity.

Al Mazaya Holding’s weekly real estate report said that the development of island beach resorts provides a wide variety of investment opportunities for the private sector to seize and benefit from on the long-term, due to their high returns and their role in promoting plans aimed to develop the tourism sector and ensure diversification of entertainment products.

The report adds that there are myriad investment opportunities in this field all over the region, which is characterised by the presence of a large number of natural islands and bays, making it a viable investment on the financial and economic levels, on the back of their high returns over the long-term, despite the high cost associated with their development.

At the same time, the intensity of competition and the similarity of real estate and tourism products are an additional impetus to the trend towards introducing innovative real estate and tourism products capable of attracting investors and companies.

Al Mazaya Holding pointed out that the cost of owning small islands is sometimes less than the price of owning a medium size apartment in many luxury real estate sites around the world, i.e., it is possible to own a small island worth $100,000, which is a significant incentive for target groups to own their own islands and establish their self-styled luxurious buildings and facilities However, the report adds that that expansion recorded by this type of development is no longer confined to the wealthy and celebrities, citing in this regard equatorial and other genres of islands that cater to the needs of several segments of investors.

According to the weekly real estate report, successful investments in this area need to focus on areas with high demand and exceptional advantages that distinguish them from others, as the tense competition for this type of real estate and tourism products push their prices down over time in light of the fact that relaxation sought by several segments of society no longer requires the purchase of an island costing millions of dollars. In this regard, the report notes that it has become feasible to get affordable offers for the development such islands that suit the requirements of luxury and family holidays, especially offshore islands, which have many basic services and are licensed for future development and construction.

The report said that the World Islands project in Dubai is capable of accommodating 16,000 tourists to enjoy the highest levels of luxury in the world. The project still represents a milestone in the establishment of new real estate products, and a qualitative shift towards attracting regional and global investments, since its announcement until now. The project is one of the most ambitious real estate developments and will cost around $5 billion upon completion in 2020.

At the same time, the Red Sea Project luxury tourism development in Saudi Arabia offers an exclusive experience of unparalleled diversity for discerning global travellers and represents an additional leap in the region. It represents the world’s most ambitious and exciting tourism and hospitality project: a luxury destination created around one of the world’s hidden natural treasures.

The Red Sea Project will set new standards in sustainable development and exceed expectations with the highest standards of service excellence.

Sprawling over 50 natural islands in Saudi Arabia, the project is expected to be finalised in 2035 and to attract more than one million visitors annually, generating revenues of about SAR15 billion a year, and creating up to 35,000 job opportunities.

Offering a diverse array of seamless, personalised experiences, the Red Sea Project will encourage visitors to explore the wonders and rich cultural heritage of Saudi Arabia’s Red Sea Coast, earning the Kingdom a prestigious position on the global tourism scene.

Al Mazaya Holding expects that the region will witness further development of island beach resorts, upon which hopes are pinned to attract investors and tourists from around the world, on the back of their low-risk factors. The report sees these projects as an opportunity to stimulate the real estate and tourism sector in the region.