Millions of Expo visitors will need a range of accommodation options
ANNA SKIGIN
Founder and CEO, Frank Porter
Short-term rentals is a booming industry worldwide but has only recently started to grow in Dubai and the UAE. Therefore, this is the right time to write about this trend, especially in line with the upcoming Expo 2020. The biggest challenge is explaining to homeowners the benefits of short-term rentals. However, it’s getting easier as the sector develops. What I love about the industry is that it’s a win-win for everyone: owners make more money and have full access to their properties, guests have more accommodation to choose from at different price points and empty properties get used.
Dubai’s short-term rental market has seen incredible growth over the past few years. Ever since holiday homes were made legal in 2016, the industry has been booming, with more and more homes coming on the market each day. From solo travellers to large families, there is something for everyone. Owners could be either investors looking to make more money on their property or frequent travellers wanting to make a profit while being away on holiday.
It is worth noting that the growth of this industry is far from over. Dubai is still a long way from catching up with New York or London in the number of Airbnb listings, especially when taking into account the number of tourists per year. For example, London and Dubai are both among the top 5 most visited cities in the world, yet London has more than 10 times the amount of Airbnb listings. It is certain that Dubai still has a long way to go for short-term rental supply to meet demand and for this market to mature.
The growth of Dubai’s short-term rental market goes hand in hand with the upcoming Expo 2020, being hosted by Dubai. It is documented that the Expo is expected to attract 25 million visitors, of which 14 million are coming from outside for the event. The remaining 11 million is a mix of residents and tourists already coming to Dubai who will visit the Expo anyways.
Since the first World Expo in London in 1851, these international expositions have been used to promote trade, display new technological advances and progress, encourage cultural exchanges and generally showcase countries on an international stage. It is an incredibly exciting moment for Dubai, the UAE and the Middle East as a whole. This is an opportunity for Dubai to shine and show its visitors the city’s potential beyond the six months of the Expo.
With so much going on and so many people arriving, the short-term rental market has come of age at the right time. Holiday homes provide the necessary accommodation on a spectrum of budgets and in any location in Dubai. You can now rent a one or two-bedroom apartment for the price of a single hotel room. This means that you can travel with your family, make your own food, wash your clothes and have enough space for everyone. Additionally, you can also access the building pool, gym and be centrally located from any activity that you wish to do.
Since our launch in 2017, we have seen an increase in the quality of short-term accommodation available in Dubai. It is no longer enough to provide a few moderately made-up beds and take photos with an iPhone. Now, apartments to rent in Dubai can be even more premium and luxurious than a hotel, with ample space for all. Decoration and furnishing are done to a professional level and guest amenities are a necessity, ensuring a perfect holiday stay. Guests are spoilt for choice, so every property needs to be special. Also, with the help of property management companies, units now have 24/7 guest support. With Dubai’s ease of ordering food, groceries or a last-minute cleaning service, it is no wonder that the short-term rental market has taken off here.
With such a high influx of tourists, we expect a considerable increase in occupancy and price per night over the period, even when taking into account an increase in supply
With so many opportunities in the market, investors are definitely not starved for choice. However, that may change as we get closer to the Expo. With such a high influx of tourists, we expect a considerable increase in occupancy and price per night over the period, even when taking into account an increase in supply. We are seeing more interest in properties close to the Expo site.
With prices relatively low, this is a good time to invest in a property and prepare it for the short term to maximise revenue. We have a very positive outlook on the market: the short-term rental market is here to stay and this is the ideal time to be a part of it.
