UAE is now the hot spot for second homes and the reason is investors have seen tremendous 20% higher returns. The short-term rental has surged here and demand for such options is increasing rapidly. For second income this is such an advantageous option now in UAE.
Even first-time properties also list their properties for short-term rentals. The founder & CEO of Frank Potter, Anna Skigin stated that short-term rental has emerged as a major alternative income source for UAE nationals and expat property owners.
She further said that short-term lets are lucrative and flexible – allowing owners complete freedom of their assets. In an interview with Khaleej Times, she said “The short-term rental market provides on average 20 per cent higher returns than long-term over a two to five-year basis”. She also said short-term rentals always generate income.
In the UAE, especially Dubai, home buyers have purchased properties and listed their assets for short-term rental on different platforms to earn a second income. Additionally, there are some key factors which support the short-term rental market, such as Dubai receiving higher tourist visits every Year.
According to Dubai’s Department of Economy and Tourism (DET), the city has welcomed 17.15 million international overnight visitors in 2023 as compared to 14.36 million the previous year which shows an increase of 19.4 per cent. That’s a huge number or population!
Dubai’s top area for highest returns
Dubai rental market recorded 205,346 new contacts and 293,624 renewals in 2023 which indicates a healthy rental growth in Dubai. The rental rate in Dubai is continuously rising and several factors are associated with it. Demands for homes are continuously rising and interested investors are majorly owning apartments and shifting it towards short-term leasing. The motto is to achieve a higher return on investment.
**Here are some top areas of Dubai, that generate unbeatable returns **
- Dubai Marina
- Jumeirah Beach Residence (JBR)
- Palm Jumeirah
- Downtown Dubai
- Jumeirah Lake Towers (JLT)
- Jumeirah Village Circle (JVC)
2024 looks better than 2023
Last year was an opportune year for Dubai Real Estate, especially the short-term market did well in 2023 and the current year also saw positive growth in just two months with 15%. Hence, it is expected that this time also rental demand in the Dubai property market will see a boom. On the other hand, the demand for short-term rental property in Dubai is so high that all the units in the project are sold out the day it is launched. Also, a new initiative would be planned to be taken by the UAE in a single GCC tourist visa which may impact positively the short-term rental properties.
