Homeowners who have been renting out short-term properties in Dubai’s real estate sector are now turning their attention to long-term rentals as the market continues to boom. An expert says that may not always be a bad thing.
The short-term homeowner market is transitioning to the long-term one at this moment. In other words, short-term rental availability has decreased. As a result, short-term property rates are bound to rise again, making them attractive to investors.
The number of guests staying at AirDXB properties increased aggressively over the previous year. The occupancy rate in March was 99 percent. As a result of Ramadan, April’s rate fell to 87%, and this rate remained high throughout the summer, beating 2021.
A rise of more than 90 percent was seen in September, and the average for Q4 was 93 percent. Guests from the previous year held off on traveling until after the New Year celebrations, which contributed to a dip in December. According to the data, 2022 saw a 0.7% drop from 2021.
Between January and April of 2021, the average length of stay was almost double that of 2022. Considering the easement of restrictions on Covid-19 in 2022, this would suggest a greater number of tourists traveling to Dubai for short holidays.
From May onward, bookings in 2022 averaged around 33 percent longer than those in 2021. “This was due to two main factors – the uncertainty of Covid-19 in 2021 and country-by-country access changes which prompted guests to cancel bookings more frequently. As the global landscape changed in 2022, Dubai saw a surge of people seeking employment, new lifestyles, or escaping unrest in their home countries in order to move to the city. There was an increase of 0.4 days in the average length of stay compared to 2021.
With travel confidence increasing in 2022, guests planned their trips well in advance, resulting in an increase of approximately 300 percent in booking lead time. The average booking lead time for September was approximately 10 days, with more guests making ‘last minute’ reservations than expected. In contrast, earlier in the year, there were around 20 days on average. According to AirDXB data, this trend continued through November.
Dubai Marina, Jumeirah Beach Residence, Downtown Dubai, as well as Bluewaters continue to be the most popular areas for short-term rentals in Dubai. In these areas, there has always been a higher supply than demand, experts said. There are new clusters coming onstream at Palm Jumeirah, making this area a major hotspot. According to experts, the Palm offers a tremendous value-added proposition.
Business Bay, Jumeirah Village Circle (JVC), Jumeirah Lakes Towers (JLT), and Meydan were among the upcoming areas mentioned by experts. The proximity of Business Bay to Downtown makes it an attractive location. A few blocks away, travelers can find cheaper accommodations in Dubai. There is a lot of great architecture at JVC. It is not there right now, but it is definitely close. The proximity of Meydan to the Downtown area also makes it a popular choice for Dubai short-term rentals.
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