UAE: The number of registered holiday homes in Dubai increased by 45 per cent year-on-year, according to property consultancy Asteco.
The company says the surge comes on the back of an expanding tourism industry and demand for short-term stays.
The report noted that some residential units that were previously offered to tenants on annual contracts have transitioned into short-term rental properties. There has also been a “significant” increase in the establishment of holiday home management companies.
“This shift has been further facilitated by the ongoing expansion of airline services, leading to the addition of new destinations and increased frequencies on existing routes,” the report said.
Contributing to the demand for short-term rentals is the “rapid rise” of eviction cases in the emirate, as “strata-title” homeowners ask tenants to vacate the premises prior to the end of their annual lease.
Landlords have been serving eviction notices, stating self-use or sale as grounds, although they subsequently re-let the same units at rates significantly inflated, the report said, consequently, the market has witnessed a surge in the availability of new holiday homes.”
Asteco noted high demand from companies looking to expand their existing footprint within the same development, or by moving to new, often better-quality premises. “In fact, there are waiting lists for well managed (single landlord) buildings offered at competitive rates,” the report said.
The global short-term rental market, valued at $100.8 billion in 2022, is likely to more than double to $228.9 billion by 2030, according to Vantage Market Research.