UAE holiday home owners take advantage of 2022 World Cup as rates rise

by Mrs. Mandacaru holiday home is a two-bedroom apartment in Business Bay, on a high floor overlooking the Burj Khalifa, offering access to amenities such as a swimming pool, sauna and gym.

The property is near the Dubai Water Canal, where guests can stroll, and is also close to shops and restaurants, she said.

“I bought the property for 2.4 million dirhams last January and it is mortgaged. Making it a holiday home is probably one of the best decisions I’ve made as it gives me a higher return as well as better flexibility compared to long-term rent,” she adds.

Bookings for stays during the World Cup came a few weeks in advance, says Ms Mandacaru.

Airbnb and Booking.com are the most popular platforms used by his vacation home management company. These platforms charge between 15 and 20% commission, she adds.

Adam Nowak, managing director of holiday home company Ultimate Stay Vacation Homes Rental, said rates in the UAE had risen 25-50% from a year earlier due to the FIFA World Cup. Fifa.

“Prices in November and December increased up to three times compared to the low season,” he says.

“Holiday home prices are very seasonal. They are lowest in the summer and during Ramadan, high from October to March, very high on public holidays, and extremely high during special events such as New Year’s Eve.

Demand for vacation homes in the UAE is usually high during the winter and holiday season, but this year, due to the FIFA World Cup, the level has almost doubled, said Saeed Al Zubaidi, director General of Like Home by Dar Al Zain Vacation Homes. .

“Currently there is a shortage of holiday home supply and the demand is greater,” he says.

Frank Porter, another UAE-based short-term property rental management company, increased the prices of vacation homes in its inventory by 40% in November and 85% to 100% in December compared to normal prices winter, according to Anna Skigin, CEO and founder of the company.

“Currently we are seeing a lot of interest in City Walk and Downtown as well as Dubai Marina and Jumeirah Beach Residence,” Ms Skigin said.

“It will expand into other areas as we get closer to the dates. Properties are booked, but the biggest surge will be in the weeks just before the World Cup. »

About 5% of Dar Al Zain Vacation Homes customers want properties close to the airport, but there is a strong demand for furnished apartments closer to tourist areas, the metro and shopping malls, according to Mr Al Zubaidi.

On average, a holiday home for eight to 10 people costs between Dh2,000 and Dh5,000 per night, he says.

The average price varies from region to region. For example, at Jumeirah Village Circle, studios are available from Dh7,000 per night, while a one-bedroom apartment costs between Dh10,000 and Dh13,000 per night, given current demand, adds M. al-Zubaidi.

According to Mr. Nowak of Ultimate Stay, prices differ greatly depending on size, location, view, sleeping capacity of guests, standard, time between booking and check-in.

“It would be hard to get a decent sized apartment in a good location for less than Dh10,000 a week,” says Mr Nowak.

“Obviously larger units in the most prime locations and stunning views can sell for a lot more and Dh50,000 or more shouldn’t come as a surprise.”

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The fan zones of the 2022 FIFA World Cup in Dubai – in pictures

The average stay in holiday homes during the World Cup is around a week, according to Frank Porter’s Ms Skigin.

The bigger the property, the longer the stay, says Nowak. This is related to the difficult logistics and planning involved when traveling in large groups.

While most visitors only want to be there for part of the tournament, there is a limited group of hardcore fans who want to stay in the UAE for the entire event. But it would be very expensive and it is also not easy to buy match tickets, especially for fans coming from abroad, such as Europe, adds Mr Nowak.

“We have seen a huge demand from overseas markets, with a 30% increase in demand from countries like Europe, the United States and even China,” said Mr. Al Zubaidi, of Dar Al Zain Vacation Homes. .

“We are also seeing a large increase in GCC.”

Visitors come mainly from the United Arab Emirates, Saudi Arabia, Russia, India, Pakistan, the United Kingdom and France, according to Ultimate Stay estimates.

It’s the usual mix for Dubai, but there’s been a significant increase in the number of Russian tourists, Mr Nowak says.

“It’s a balanced mix of families and friends who want to experience unforgettable moments together,” he adds.

As seasoned owners eagerly await the tournament, new owners are also signing up to open up their properties for short-term rentals during the season due to the potential of the World Cup to generate more revenue, according to experts from the sector.

Owners enjoy significant financial benefits as they receive on average 30% more income and in some cases even up to 80% to 90%.

They also understand that they have more control over the property and can sell at any time vacant upon transfer and that the unit is better maintained, Mr. Nowak says.

Property owners in Dubai must apply for a holiday home permit from the Ministry of Economy and Tourism, register with the community, obtain special insurance and outfit the unit to hotel standards, he says.

The regulator is also encouraging homeowners to apply smart home solutions such as smart locks, smart noise detection systems, as well as sustainability practices, Nowak adds.

Property owners in Abu Dhabi can apply for a vacation home permit from the Department of Culture and Tourism.

The department signed an agreement with Airbnb in February to promote the vacation home sector in the capital.

Under the agreement, the Abu Dhabi Department of Tourism and Airbnb will collaborate to help grow and grow the industry for visitors looking for alternatives to traditional hotels.

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