Kennedy Towers marks property portfolio value milestone
Dubai: Kennedy Towers, Dubai’s largest vacation rental management company, has announced its property portfolio has exceeded AED (Arab Emirate dirham) one billion in value (216.25m in pound sterling).
The tech-focused operator revealed that the median net yield returned to investors on the portfolio is 8.75 per cent, which outperforms the equivalent long-term rental yield for residential properties in the emirate.
The news marks a major milestone in the company’s growth, since it was founded by brothers Simon and Mark Kennedy in partnership with Mark Towers in 2015. At the time, Kennedy Towers became one of the first licensed property management firms in the vacation rental marketplace and it has since grown rapidly to become the largest operator in the United Arab Emirates.
Simon Kennedy told PRUnderground: “We use a blend of real estate expertise and technology to balance short- and medium- term rentals across our portfolio. We tailor our strategy to each specific unit type – whether it is a studio apartment or six-bedroom luxury villa – to maximise the returns for our clients.”
Kennedy highlights current market conditions in Dubai as being ideal for landlords to convert apartment spaces into short-term rentals.
He added: “The long-term leasing market has witnessed a notable correction due to many factors, including high supply levels. Short-term rentals have not experienced the same reduction as supply is still relatively low, meaning that the spread in returns between the two activities has widened.”
Mark Kennedy echoed his brother’s thoughts: “Our guests experience considerable value for money with our properties being priced much lower than the equivalent offering from hotels or serviced apartments in the same area.”
According to the Kennedys, 65 per cent of the firm’s guests are repeat customers, and over half of their landlords have remained with the company for more than three years.
They said: “Our repeat bookings and strong corporate relationships form the foundation of our occupancy. We use this foundation to support our growth.”
Kennedy Towers says it has achieved this growth without the assistance of third-party investors, by implementing an efficient business model and utilising clear operating systems and effective technology.
The Kennedys added: “We are delighted with the way we are growing and would only seek additional partners if they could bring value beyond just providing capital.”
In 2018, Kennedy Towers opened an office in Marbella, Spain, and it is in the process of expanding its operations into London this year.
Mark Kennedy said: “We see a lot of synergies between the UAE, UK and Spain, with many of our Dubai clients also owning properties in these locations.”
For more information, visit the Kennedy Towers website here.