Dubai Real Estate Market Transformed by Short-Term Rentals
August 27, 2024
Short-term rentals in Dubai Real Estate market have surged by 30% from last year, reshaping the rental market. This trend offers property owners high returns and attracts more tourists.
“Over the past year, we have seen short-term rentals in Dubai surge, with a 30% increase in bookings due to rising tourism and a demand for flexible living options,”
explains Myles Rothwell, Managing Director at Edwards and Towers, a leading real estate brokerage and surveying practice in Dubai.
Investor returns up – Dubai Real Estate Market
“This has led to investor returns up to 20% higher than traditional leases. In comparison, long-term rentals offer steady income, maintaining an average annual yield of 7%.”
“When searching for an ideal short-term rental, thorough research is crucial,”
says Cherif Sleiman, Chief Revenue Officer at Property Finder, a pioneering regional property portal.
“While consumers seek unique experiences curated by diverse hosts, for investors, this is an opportunity to select properties that promise the best returns. Indeed, the growth of short-term rentals is a thrilling development within the real estate sector, and we look forward to its continued success,”
he adds.
The Dubai real estate market is seeing increased demand for short-term rentals, with neighborhoods like Business Bay, Arjan, Downtown Dubai, Palm Jumeirah, and DAMAC Hills becoming popular.
Average Monthly rent in Dubai report 2023*
Luxurious travel destination
“In recent years, Dubai has become a luxury travel destination, with visitors willing to pay more for high-end accommodations. A significant trend is that families and groups prefer larger holiday homes over multiple hotel rooms, driving up the demand for vacation villas and spacious apartments for short-term rentals. In early 2023 up to date 2024, Dubai’s rising demand for short-term rentals presents landlords with lucrative opportunities for high occupancy rates and attractive rental yields. Dubai’s vibrant tourism scene ensures strong demand for short-term rentals, offering landlords and investors a steady and profitable income stream,” Abou Jaoude adds.
As winter approaches and more visitors come to Dubai, investors need to understand and keep up with their diverse interests to get the most value from their properties. Dubai real estate market seems to be very hotline among the most visited areas in emirates.
In the Dubai real estate market, successful short-term rentals should meet consumer needs and regulations while offering strong returns. Investors should:
- Understand Regulations: Be clear about rules on health, safety, and quality for compliance.
- Use Technology: Enhance guest experiences with smart home devices.
- Go Green: Implement eco-friendly practices to attract environmentally conscious travelers.
- Choose Trusted Platforms: List properties on reliable sites like Property Finder to reach a global audience and gain insights for better investment decisions.
