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How is Dubai’s holiday homes sector faring?

How is Dubai’s holiday homes sector faring?

With Dubai open to welcoming tourists again, holiday homes are set to gain further traction

Holiday home operations in the emirate of Dubai commenced in 2015, and have since, witnessed substantial growth.

In 2019, it grew 42 per cent annually, as 7,005 units were rented out in comparison to 4,738 in 2018, according to data revealed by Dubai’s Department of Tourism and Commerce Marketing. An administrative order was then issued in January this year, supplementing existing regulations that govern holiday home activities, to aid those who wish to obtain a holiday home licence in the emirate.

Read: Dubai Tourism Authority issues new guidelines for holiday homes sector

Backed by growing demand and regulatory support, this trend seems to be gaining ground, that too for a lengthier course, as visitors are signing up at such properties for longer durations.

“People are booking holiday homes for longer term, due to several factors. If the property is managed well and maintained to a certain standard, the guests would be paying more than the long-term rental. The reason we have guests opting for holiday homes is flexibility and the services we provide them. The advantage is that you only pay for the number of nights you book it for. What this effectively means is if you are unsure about your plans, we offer the flexibility to manage the duration of the stay and outgoings far better than others,” opines Vinayak Mahtani, CEO of bnbme, a Dubai-based holiday homes management company.

Besides flexibility and added services, holiday homes also accord the privilege of living in marquee – and often unaffordable – areas within the emirate. Bnbme manages properties across the emirate but the ones based in Dubai Marina, The Palm and Downtown Dubai reckon to be more popular.

“What several people are doing is, instead of renting three studios in say Sports City or even International City, they rent two apartments in Downtown or Marina or JLT and share the accommodation – for a little bit more, they get to be in a more posh location. Many properties in JBR are operating under this model,” notes Mahtani.

In the wake of the Covid-19 pandemic, demand in travel has picked pace with Dubai welcoming tourists since July and local carriers resuming passenger services to a myriad of global destinations. With greater confidence, international travellers have begun to pour in, lending hope to the future of this sector.

“I think with Saudi Arabia, India, China and Africa still to open their doors for travel, Q4 and Q1 of next year are going to look very positive for the Dubai holiday homes market. Dubai has proven once again that globally it reacts best to any sort of crises and we are in the safest place in the world today during the current pandemic. This will be one of the safest places for families and groups to visit over the next few months,” concludes Mahtani.

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