UAE Short-Term Rental Market Sees 20% Growth with New Listings and High Returns

The UAE's short-term rental market is experiencing significant growth, fueled by rising demand and new listing platforms.

Property owners are increasingly opting for short-term rentals over long-term leases, driven by higher returns, particularly in high-demand areas such as Downtown and Burj Khalifa.

Industry executives highlight that the demand primarily stems from digital nomads and international visitors from Europe and Asia.

Anna Skigin, CEO of Frank Porter, noted,

"Demand for short-term rentals is definitely growing. New companies are entering the market, and listings are expanding across the UAE as more guests come to experience the region."

Ramjee Iyer, Chairman of Acube Developments, attributes this surge to the UAE's status as a global travel hub and the government's tourism initiatives, including visa reforms and new attractions.

"The rise of digital nomads and local staycations further boost the short-term rental market,"

he said.

Yogesh Bulchandani, Founder of Sunrise Capital, added that the emergence of new platforms has simplified the process for property owners to list short-term rentals.

Vinayak Mahtani, CEO of bnbme holiday homes, pointed out that residents from India, Bangladesh, Pakistan, and GCC countries constitute about 70% of visitors, with luxury villas and penthouses being in high demand.

Studies highlight that short-term rentals in prime locations yield substantial returns. Anna Skigin referenced a survey by CIA Landlords, revealing Dubai as the most profitable Airbnb city in 2022, where owners near Burj Khalifa could earn an average of £930 per night, breaking even within four months.

Short-term rentals typically offer a 20% higher return compared to long-term leases, with potential peaks during major events and tourist seasons. Ramjee Iyer forecasts continued growth, supported by the rebound in travel and the rise of remote work. Skigin anticipates market consolidation, leading to greater stability and quality in listings.

As the UAE's tourism infrastructure evolves, the short-term rental sector is poised for further expansion, catering to a diverse range of travelers and offering lucrative opportunities for property owners.

News Source: Khaleej Times