Short-time period leases are becoming more and more famous among UAE residents as they offer huge ability for added profits. Industry experts recognize that many first-time property owners are now choosing to list their properties for short-term rental to generate extra cash.
Like many exceptional sectors, the quick-time period apartment market professional a downturn throughout the COVID-19 pandemic in 2020. However, it rebounded unexpectedly thanks to the phenomenon of ‘revenge travel’ located COVID-19.
Anna Skigin, the CEO of Frank Porter, an organization specializing in Airbnb Management Services, emphasized the developing importance of short-term period rentals as an alternative earnings stream for Emirati nationals and expatriate property owners.
Skigin further highlighted the attractiveness of short-term rentals, noting that they offer both lucrative returns and flexibility, granting owners full control over their assets. In an interview with Khaleej Times, she stated, “Over a two to five-year period, the short-term rental market offers, on average, twenty percent higher returns than long-term.” This emphasizes the cost benefits of short-term rentals over conventional long-term leases.
“We are seeing property owners entering the Dubai real estate market for the first time and right away converting the units to short-term rentals. We are also seeing some of our clients sell their units to new buyers. It has become part of the selling point of a property,” said Skigin, a Russian and Canadian national.
Skiggin confirmed that short-term rentals continue to generate income, “We have continued to see this trend in most of our owners who have been with us for more than 2-3 years”.
Interestingly, many property buyers in the UAE, especially in Dubai, who have invested in the local market, have listed their short-term rental properties on online portals to secure rental rates and the benefits of the increase
Additionally, experts in the industry point out that the growing short-term rental tourist market in Dubai and the UAE is providing an added impetus.
According to the latest figures released by the Dubai Department of Economy and Tourism (DET), the number of tourists in the emirate peaked in 2023, attracting 17.15 million international overnight visitors compared to 14.36 million the previous year, a significant increase of 19.4 Figures recorded in 2019 They also surpassed the record of 16.73 million.
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Frank Porter’s founder emphasized the positive performance of the short-term rental market in 2023, stating, “We have seen it return post-COVID-19 with more and more people traveling. In terms of 2024, it is still early, but our January and February numbers are already above 2023 by about 15 percent. So we are anticipating this to continue. Travel is fully back and it’s being reflected in the numbers.”
Highlighting emerging trends, Skigin noted the growing presence of other emirates in the UAE short-term rental market, such as Abu Dhabi and Ras Al Khaimah, which are experiencing rapid growth. She added, “We are seeing a lot of interest in these areas.”
Skigin further elaborated that longer stays are becoming increasingly common, with individuals opting to ‘work from’ their holiday rental accommodations. Additionally, she highlighted the positive impact of initiatives like the single GCC tourist visa, which is anticipated to be implemented shortly, as a beneficial development for the market.
