Dubai, a Global Tourist Destination, Gets Boost to UAE's Economy Through It's Rental Market

Dubai, a Global Tourist Destination, Sees Rental Market Begin to Boost UAE’s Economy

Dubai, a Global Tourist Destination, Gets Boost to UAE's Economy Through It's Rental Market
Dubai, a Global Tourist Destination, Gets Boost to UAE’s Economy Through It’s Rental Market

Dubai has continued to emerge as one of the leading holiday destinations in the world. Many holiday-makers have made their way to the UAE-based city in a bid to sample their Arab cuisines, enjoy the sunny weather, and most importantly, their exquisite accommodation facilities. Accommodation facilities that have gained significant popularity in the Dubai holiday-landscape are short-term rental holiday homes.

A 2018 research by Skift pointed out that the global holiday rental market had reached $169 billion. Airbnb was also a key player in facilitating an increase in demand for holiday homes by those taking vacations globally. For instance, Airbnb has listed more than 10,000 holiday homes on its platform. This is an indication of an increased appetite by holidaymakers for holiday homes as opposed to traditional hotels.

Impact of Eased Regulations on Holiday Homes

The UAE administration noticed the annual influx of tourists to Dubai, most of whom ended up experiencing accommodation challenges due to limited hotel rooms. Subsequently, the Dubai administration made spirited efforts to relax the rules in 2016, hence, opening up markets further. The new laws gave leeway to homeowners to rent their homes to tourists on a low-cost and straightforward basis.

Factors Driving the Rise in Holiday Homes

Dubai Expo 2020

Various events are considered main attractions not only for holidaymakers but also for those in the corporate world. For instance, the Dubai Expo 2020 is projected to attract more than 20 million tourists to the United Arab Emirates. Previously, most of them would have limited choices of accommodation spaces. They would have crowded at Dubai Marina, Downtown, or Jumeirah Beach Residence in search of decent accommodation. However, the new laws will give them a chance to seek short-term rentals in holiday homes at affordable rates. Indeed, holiday homes have played a vital role in filling the gap that previously existed in tourist accommodation.

The 2020 Dubai Expo will be a significant boost to the city’s economy, with over 25 million tourists expected. It will be the highest number of international visitors in the Middle East nation in the history of World Expos. The UAE is a final global destination for most tourists, as it not only brings people but also countries together.

Types of Holiday Homes in UAE

Visitors to Dubai will be spoilt for options when it comes to choosing their preferred holiday home. They will choose from accommodation facilities such as chalets, cottages, villas, beach houses, cabins, private homes, farm stays, and rental apartments. The visitors will find these facilities affordable, with variations depending on location, price, and season.

Most UAE investors are currently opting for short-term rentals as opposed to long term properties. However, there’s a carte blanch. The investors will have to conduct due diligence before putting up the homes since demand varies depending on the type of the house. For instance, one bedroom apartments are suitable for short-term but not for long-term stay.

How to Run and Maintain Holiday Homes

Efficient management is critical for the success of holiday homes. Experts like Knight Frank stress on the importance of enlisting the services of professionals to manage the houses. The administration incorporates a plethora of factors if long-term success is to be achieved. It includes marketing of the homes, maintenance, housekeeping, and provision of security to the residents. Additionally, the property owner will have to consider external factors such as competition, sales, and government regulations.
Every aspect of a holiday home should be managed organically to achieve optimum results. After all, short-term rentals are an essential aspect of Dubai’s economic growth and a significant tourist attraction.

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