The month of March as reported by STR Global for Dubai indicates strong supply growth.
Based on daily data, the emirate Dubai reported an increase in supply with 6.9% and a decrease in demand by -1.5%. There was also a 2.2% decrease in occupancy to 85.7% and a 6.1% decrease in average daily rate to AED978.69; resulting in a decline in revenue per available room by 8.1% to AED838.69.
“Dubai was always going to find it difficult to achieve the same performance levels of 2014, with the first quarter of last year being one of the strongest on record”, said Elizabeth Winkle, managing director of STR Global. “This factor, combined with a few others, such as new supply entering the market, declines from some traditionally strong feeder markets such as Russia and Ukraine, and the progress of competing markets like Egypt and Lebanon, has all combined to create additional challenges for Dubai.”