A capitalization rate, or cap rate, is a ratio that can be used to estimate the value of income-producing properties. Put simply, a cap rate is the percentage of net operating income (NOI) to property asset value. For example, a US$1.0 million sale price of a property that produces an annual net cash flow of US$90,000 results in a calculated capitalization rate of 9.0% ($90,000/$1,000,000). A comparatively lower cap rate indicates less risk associated with an investment, whil

Revenue per available room (RevPAR) figures for Dubai hotels have slumped to their lowest level in a decade, according to a new report. JLL’s Q3 2017 Dubai Real Estate Market Overview report said that RevPAR for the first eight months of 2017 has fallen to AED503 (US $136.9). The pressure on rates and revenue comes as a further 1,800 keys were added to the market in the third quarter of the year, bringing the total stock of quality hotel rooms in Dubai to almost 82,200. A pot