In Dubai, holiday home rentals for New Year in record territory, prices for Palm villas at 60,000 Dh
Dubai: As expected, holiday home rents in Dubai over the New Year are set to hit new highs, with some properties on the Palm Jumeirah reaching around Dh60,000 for stays between December 30 and January 2.
Rates could rise further as owners wait for last-minute bookings, for which they could charge a premium.
Locations beyond the Palm are also attracting attention for holiday home rentals, with high-end apartments in downtown Dubai renting for Dh20,000 and more from December 30 to January 2.
Additionally, this year holiday homes in Sharjah and Abu Dhabi are coming in the New Year holiday, with laws now in place that allow owners to offer short stay options.
“As always, the absolute highest rates in Dubai are during the New York period,” said Anna Skigin, founder of Frank Porter, Airbnb’s management company. “This year, it will be particularly felt. We expect the highest rates in January.
The Doha World Cup is preparing well
For homeowners active in the vacation/short stay residence space, demand in the last week of 2022 – and early days of 2023 – is a continuation of an unprecedented run of sustained demand. It all started on or around November 18, when football fans showed up for stays in the United Arab Emirates between their match trips to Doha for the World Cup. (Upscale Palm villas were renting for Dh20,520 on average from December 16-19, coinciding with the final days of the Doha event.)
“Rates at the start of the World Cup jumped 15-20% from normal seasonal rates,” Anna said.
Now comes the blockbuster New Year phase, and where holiday home rents have doubled – or even more – gains. Everything is going as the owners hoped.
World Cup bargain for short breaks in Dubai
During the Doha World Cup phase, the short-term rental market in Dubai made big profits.
“The most requested areas were Dubai Marina and Downtown due to its popularity with tourists and familiarity with travellers,” said BetterStay STR Manager Joanna Plunket. “There were also plenty of World Cup fan areas around the marina, which came in handy for visitors wanting to feel immersed in the atmosphere without having to travel to Qatar. “The World Cup is expected to attract more attention and shine the spotlight on the short-term rental market.
“It gave people the opportunity to experience the flexibility and comfort of short-term stays as a more suitable alternative in many cases.”
Everyone has become aware of the World Cup event and its proximity to Dubai, leading investors to consider short-term rentals when they might not have been aware of it before. .
– Joanna Plunket, BetterStay STR Manager
Win-win for owners
“Their decision to keep their properties in the short-term rental market has paid off,” said a real estate agent. “Many of them would now have generated higher returns than they would have obtained for the same property if it had been placed for a one-year rental.
“And this even as rents on one-year contracts in Dubai have recorded increases of 20 to 30%. 2022 has been the year of owners.
Laws are now in place that allow landlords in Abu Dhabi and Sharjah to offer short stay options.
Opportunities open up for Sharjah, Abu Dhabi
The holiday home concept in Sharjah and Abu Dhabi is still in its infancy, but market sources say there has been plenty of activity during the World Cup phase. Both emirates now have clearly defined rules on how landlords/landlords should operate in the short-term rental space and how the interests of tenants should be taken into account.
“Abu Dhabi fares are about 40% lower than Dubai on average,” Anna said. “Sharjah’s rates are currently 50% lower than Dubai’s on average – but it’s worth noting that both markets are growing, so the rate difference between them will narrow over time.”
Increase in short stay capacity
It could take a year or two before sufficient capacity for short stays becomes available in these two emirates. For that to happen, more homes will need to be delivered, which their owners can then reuse for the short-stay market. Additionally, there will need to be supporting factors in play – such as mega-events or a series of scheduled events – that can fuel consistent demand for short rentals.
This is where Abu Dhabi’s focus on developing a packed calendar of events and conferences will come in very handy. But it will be up to the owner which option he chooses – the one-year lease or the short stay.
The short stay market in Dubai has evolved over 4-5 years, and there has also been a disruption in 2020 due to the pandemic. “That’s why 2022 has been such a breakthrough year – the holiday home market in Dubai has more than made up for 2020,” said one owner who owns five properties in the Airbnb space, all of which are fully booked until now. next January 15.
At first glance, 2023 could turn out to be just as robust.
Dubai opens up possibilities for Airbnb
If Dubai’s short-term stay market needed this breakthrough, it got one this week. In the form of Airbnb’s launch of a “Dubai Remote Work Center”, designed as a destination for remote workers looking to relocate to the city.
It is a follow-up to Airbnb’s ‘Live and Work Anywhere’ initiative from earlier this year, where the ad company identified the ‘world’s most remote destinations for workers’. .
Dubai was one of 20 destinations chosen alongside Thailand, the Caribbean and the Canary Islands.
The Live and Work Anywhere program will see Airbnb and Dubai’s Department of Economy and Tourism promoting the city to remote workers looking for accommodation and advice for their long-term stays.
“The supply of holiday homes in Dubai has increased by more than 100% in the last 12 months,” said Vinayak Mahtani, CEO of bnbme holiday homes. “Collectively, we all now need to focus on creating demand to ensure we don’t end up with oversupply.
“We will work closely with Airbnb and other platforms to provide longer stays with services, which may include daily cleaning, breakfast, office set-up, management assistance and the drivers. This will attract a different type of guest – you can’t get a better location than Dubai for remote work.
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