Short term rentals in Dubai are reshaping the rental market with a 30% increase in demand compared to this time last year. Industry Experts claim that the trend is revolutionising the region’s real estate scene, offering remarkable returns for savvy property owners, and attractive accommodation options to visitors.
“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.
“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. “Our recent white paper, titled Opening Doors: Insights, Trends and Forecasts for Real Estate in the UAE, reveals that most short-term renters with families for example, prefer lifestyle-oriented communities with vibrant assets and good connectivity.
“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.
Beyond the increase in demand, there are specific areas which are becoming more well known for the short-term rental options they offer. Anthony Joseph Abou Jaoude, Founder and CEO of Primestay, one of the leading holiday home rental companies in Dubai, highlights that areas such as Business Bay, Arjan, Jumeirah Village Circle, Downtown Dubai, Palm Jumeirah, and DAMAC Hills are particularly popular. These vibrant locales offer a rich blend of world-class amenities and trendy communities, providing unique experiences and effortless access to the city's attractions.
“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.
