Dubai’s immense charm as a tourist destination and a business centre is getting heightened by a new trend – the demand for short-term rentals. Here’s why you should cash on to this opportunity
By: Rohal Kohyar, Marketing Manager, Gulf Sotheby’s International Realty
Posted on: March 5, 2020
Luxury vacation rental properties, providing a high level of service for travelers requiring a temporary slice of paradise, go a long way. Options span every corner of the globe from the snowy mountain retreats of the Alps to the cliff-side mansions of the Mediterranean, the palm-tree villas of Asia to the enviable luxury homes of the Hamptons or Napa Valley. It is hard to ignore the undeniable benefits of the short-term luxury rental industry and just how much of a game-changer it is in your investment portfolio.
Partnering with Maison Privee to deliver luxury short-term rentals for luxury properties on Palm Jumeirah is reflective of the direction taken by the property and tourism market in Dubai and the wider Middle East region. The trend in travelling, particularly for those with a higher budget, is towards trips that not only enable a more immersive experience in the destination, but one that provides a more luxurious and convenient style of accommodation, especially one that mirrors the key benefits of being at home - privacy and comfort.
In fact, recent study showed that 47% of people looking for holiday accommodation on Booking.com focused their search on non-hotel options. At Gulf Sotheby’s International Realty, we are seeing tourists, both regionally and internationally, demand a more personalised experience, one in which they can curate their own trip and indulge in the freedom of a short-term rental rather than a potentially restrictive hotel.
If you own property or have been developing your own luxury property portfolio, there are few ways to cement your investment potential more lucratively than a short-term rental. In 2018 the global vacation rental market was estimated to be worth over $169 billion, with growth projections for 2019-2022 anywhere from 6% to 26% annually. Given Dubai’s unique global positioning, the upcoming Expo 2020 (a World Expo), consistently climbing tourism and business traveller figures, and stunningly diverse landscape, the increase in demand for luxury short-term rental properties is only set to sky rocket further in the next few years.
Here are some of the alluringly attractive benefits you could enjoy as the owner of a luxury vacation rental property:
1. Results – Short-term rentals consistently show far higher yield rates than long term leases, which means you can achieve better financial results in a shorter period of time and benefit from peak pricing periods for events or seasonal surges.
2. Convenience – With the recent explosion in the short-term property rental industry, multiple ultra-professional companies have mushroomed, which are expertly trained to manage luxury vacation rentals. By utilising their specialised services, you have the peace of mind that your property is in the best hands and is being constantly monitored to maintain the highest levels of quality – far more than it would be in the hands of long-term tenants.
3. Flexibility – Not only is there the flexibility that comes with less commitment, unlike long-term rental options that often have to be at least 12 months in length, but there is also plenty of flexibility for you to enjoy your own property! If you have managed to select a stunning luxury property, you should certainly be able to make the most of it. A short-term rental arrangement allows you to indulge without compromising on revenue.
A greater return on your investment, extensive flexibility and more regular property upkeep are just some of the amazing reasons to consider shifting to a short-term luxury rental property. This is an industry that will continue to go from strength to strength, particularly in the burgeoning Middle East region.
Rohal Kohyar is the Marketing Manager at Gulf Sotheby’s International Realty, and designs top-line marketing strategy for brand development and intuitive content creation for the region's top luxury real estate firm.