Dubai's sleepy summers a thing of the past as economic activity heats up

The National

3 days ago

The summer months in Dubai have typically been a time when many travel, move house or depart for good.
The events season takes a breather and those who remain enjoy a couple of relatively more peaceful months.
But as Dubai's population continues to rise, is the city starting to shake off the traditional summer slowdown and become a place of year-round activity?
The National spoke to experts from hospitality to property to try to gauge if things were changing.
'There is no such thing as a downtime any more,' said V Nandakumar, director of marketing and communications at Lulu Group which operates retail outlets across the UAE.
'Traditionally, July and August were always seen as non-peak … because of the weather conditions and the fact people travel out of the UAE,' he said. 'But that is not the case now.'
'People don't want to leave'
Hitesh Vachhani, team lead of commercial at Santa Fe Relocation in Dubai, said June to August used to be peak time for their moving business but that is no longer the case.
'Fifty per cent to 60 per cent of our volume used to happen in the summer months,' said Mr Vachhani. 'Now it is only 20 per cent because it is spread out during the year.
'There are a few schools now who are even accommodating mid-year admissions if they have space. And this was never the case before.'
Authorities have made major efforts over the past few years to get more people to visit and stay in Dubai through initiatives such as liberalised visa rules, investment in education, and new residential developments.
Growing population
Dubai's population is increasing – at 3.98 million on Monday – up from 3.77m on the same day a year ago – and this may also partially explain why the city feels slightly busier in the summer.
Mr Vachhani said there was a time when people moved with their families, stayed for an assignment period and then went home but this was also no longer valid, meaning Dubai is a less transient place.
'People don't want to leave,' he said. 'Because going back is the last resort.'
And even of those who move to a new assignment − often to other regional countries − their families often stay here. 'That has never happened in the past. People don't want to leave in the summers.'
Hotel occupancy on the rise
Statistics shared with The National by the CoStar Group, parent company of hotel analytics provider STR, showed that yearly occupancy data to June is 81.4 per cent – up 4.5 per cent on 2024.
And monthly occupancy data to July 26 stands at 70.3 per cent – a rise of 3.7 per cent per cent on last year.
'We can't really identify if it's staycations or tourists at this point without knowing how tourism arrivals are trending at the same time,' said Kostas Nikolaidis, senior account manager for the Middle East and Africa at STR. 'But one thing is for sure, hotels are busier as occupancies are growing.'
Mr Nikolaidis said summer still had significant room for growth as 'overcoming seasonality is a monumental challenge for all destinations'.
'However, Dubai is taking steady steps in the right direction. Even now in the heat of summer.'
Hospitality groups also said they had noticed a rise in business over the summer. Paul Stevens, chief operating officer, Middle East, Africa and Turkey, for the premium, midscale and economy division at Accor, said it was clear that Dubai's traditional summer slowdown was 'softening' with marketwide demand 'up two per cent over summer 2024'.
'While July had a brief dip due to regional events earlier in the month, overall, this summer is shaping up stronger than last year,' he said.
Mr Stevens said the strength of the euro against the dirham made Dubai about 10 per cent more affordable for many European travellers compared with last year and an increase in inbound flight capacity – up around two per cent to four per cent from 2024 – was also important.
'Across our Accor portfolio in Dubai, we've seen a noticeable sharp rise in both international arrivals and staycations, despite the Middle East tensions in June and early July,' he said, with the city's investment in experiences that were indoors and climate-controlled bolstering this.
'For us, that's a shift worth watching,' he said. 'Dubai isn't just a seasonal hotspot any more, it's a 12-month destination and summer is increasingly part of that success story.'
Even at Dubai Gold Souq, there were signs that long term trends pointed to the city getting busier.
'If we compare from the past two to three years, then this summer is quiet,' said Arjun Dhanak, director of Kanz Jewels, who said gold reaching record highs meant some customers were waiting to buy. 'But if we compare with 10 years ago, it is busier.'
There are also signs of growth in the property market. According to the Dubai Land Department, property transactions were up 26 per cent in first half of the year as more tenants convert to buyers.
'Contrary to the typical seasonal slowdown often associated with the summer months, this year the Dubai real estate market has continued to perform robustly,' said Zacky Sajjad, director of business development and client relations at the Cavendish Maxwell property consultancy.
'Our data shows that residential transaction volumes in June and July 2025 increased by 18.6 per cent year-on-year, with the total value of transactions rising by 19.5 per cent compared to the same period last year.
Mr Sajjad pointed to the fact Dubai International Airport reported a record first half of the year, how hotel occupancy levels are growing every year and the fact Dubai's population increases bring further demand to the residential and hospitality sectors.
'From a practical standpoint across the industry and asset classes, it is clear there has been no significant summer slowdown, so far,' he said.
'On the contrary, the market appears to be maintaining strong transactional and operational activity, reinforcing Dubai's position as a resilient and attractive global real estate hub, even during the traditionally quieter summer season.'