The Sky-High Potential of Dubai's Short-Term Rentals Market

The Sky-High Potential of Dubai's Short-Term Rentals Market

In 2024, the real estate market has experienced significant changes in terms of trends and dynamics. Knowing the ins and outs of Dubai's short-term rental real estate market will help you make well-informed decisions, whether you're a foreigner considering a short-term stay or a homeowner looking to maximize your investment returns. Read this article to find out the market position of short-term rentals and the prediction of the market growth in the year ahead.  

Growth of the Short-Term Rental Market During Recent Years

In recent years, the luxury living lifestyle has become a vital trend, the market also shifted a lot. Luxury has come to be associated with Dubai, and travelers are prepared to spend more for upscale accommodations that provide outstanding features and services. 

The next trend is that most families and groups of friends who come to Dubai for vacations are choosing larger holiday houses rather than renting many hotel rooms. That’s why the demand for vacation home villas and larger apartments becomes more available for short-term rentals as a result of this trend.

According to data by AirDNA, the most popular types of short-term rentals in Dubai were apartments, making up 65% of all listings. Typically, apartments with two or three bedrooms, and each rental could accommodate three or four visitors on average. The second most popular one which 26% of short-term rental listings was luxury villas. 

For homeowners in Dubai, the growing demand for short-term rentals has brought about massive opportunities to generate significant revenue from their houses through high occupancy rates and appealing rental yields. 

Condition of Short-term Rental Market In 2024

Compared to 2023, a 20% growth in vacation home sectors (up to six months) and a 15% increase in long-term rentals (more than six months) are expected in 2024. 

Due to the high profits the market offers, a large number of new and existing property owners in Dubai are turning their homes into short-term rentals.  At the start of 2024, Locations like Dubai Marina, Downtown Dubai, Palm Jumeirah, and DAMAC Hills saw lots of sales which is the high-interest area of the Dubai rental market. 

The Future Potential of Dubai’s Short-Term Rental Market

The rental market in the UAE is projected to grow by 20% (2024-2028), resulting in a market volume of $340.40 million in 2028. Dubai's commitment to creating a dynamic tourism environment guarantees that investing in short-term rentals remains a solid and profitable option. With the city regularly welcoming events, from exhibitions and conferences to cultural festivities, the need for temporary accommodations is consistently strong. For landlords and investors in Dubai, this means a steady and dependable flow of rental income, positioning short-term rental investments as highly profitable with the potential for sustained success.

What We Can Help You With: 

At ERE Homes, we provide a range of services tailored to your short-term rental needs. Whether you require a short-term rental for a family holiday, work trip, or longer stay, we offer high-quality villas and apartments.

Contact us to discover the perfect villa or apartment and for additional details about our short-term rental properties.

The sky-high potential of Dubai's short-term rental market is undeniable, with growth trends reflecting strong opportunities for investors. The shift towards luxury living and the demand for larger holiday homes make this an exciting time to invest. At Imlaak.com, we're here to help you 10x your real estate investments and maximize returns in this thriving market. 🌟🏡

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