Dubai: A detailed study on holiday homes suggests that the holiday homes in Dubai is a segment producing favorable numbers for the emirate of Dubai and Abu Dhabi. According to the report in 2019, the holiday homes market accounted for 2 per cent of total households in the emirate. This was noted to be the highest proportion when compared to all other global hub cities. In 2021, Dubai was ranked 4th spot in the list of top cities for holiday homes globally. Abu Dhabi occupied the 3rd spot in the same list.
With rising prices and an increase in the number of tourists preferring short-term rentals, the market for holiday homes is certainly ripe for investment. These properties generate high returns and offer a higher level of flexibility to owners. They can also increase prices according to the demand and season.
Despite the pandemic-ridden 2021, Dubai welcomed around 7.27 billion tourists. Of course, Expo 2020 gets the major credit here, but we shouldn’t overlook how the government’s initiatives, implementation of SOPs, and a successful vaccine drive contributed to bringing a huge number of visitors, particularly when compared to other prominent vacation destinations.
Amidst towering hotels and luxury resorts, there lie holiday homes in Dubai catering to tourists seeking short-term residential options. Over the years, they have become the preferred choice of many for the ‘homely’ environment they offer. The fact that they come with an advanced set of facilities also attracts many. The affordable prices, as compared to high-end hotels and resorts, is another factor that makes them appealing to renters.
The Market’s Scope for Investors
As per the study, Like all other segments, the market for holiday homes dipped in 2020 due to COVID-19 and its repercussions. However, it was back on its feet in no longer than 15 months. Q3, 2021 saw holiday homes dominating the hospitality market in Dubai, making the dull period between March 2020 and August 2020 a distant memory.
Investing in holiday homes comes with a major challenge pertaining to their location. While the upwards trajectory is noted in the growth of holiday homes in Dubai, it’s not uniform in all areas. Prominent areas, such as Downtown Dubai, Palm Jumeirah, and Dubai Marina remain the preferred choices for tenants seeking holiday homes in the emirate. Therefore, these areas have the maximum potential in terms of earning for owners, while other areas struggle a little.
Despite this challenge, this sector Is expected to grow and prosper in the time to come. This is due to new developments and attractions in the pipeline, the government’s focus on making Dubai the “city of the future” and a safe environment.