Dubai: Dubai-based property management company Short Stay Vacation Homes has raised Dh7.2 million [$1.96 million] to fund its expansion plans in the Emirati city.
The funding round, which was led by Kinshasa-based private investment firm SK Group, will enable Short Stay to accelerate its domestic expansion plans through unit acquisitions. The company is aiming to scale up its existing 75-unit portfolio to more than 500 by Q4 of next year.
Short Stay founder Jugal Khushalani told The National News: “Over the last five years, the industry has witnessed a steep surge in demand for ‘home-away-from-home’ experiences that short-term rentals offer customers, along with high standards of cleanliness and safety.
“This appeals to both leisure and business travellers. Dubai’s short-term rental market has seen double-digit growth and with Expo 2020, we only expect it to rise further,” he added.
Founded in 2017, Short Stay manages privately-owned apartments across Dubai, including in popular residential and tourist areas such as Downtown Dubai, Jumeirah Beach Residences, Jumeirah Lakes Towers and Dubai Marina.
The short-term rental market in the emirate is likely to experience a boom with more than 2.5 million visitors so far visiting Expo 2020 Dubai, which lasts until the end of March 2022, and the UAE cabinet has also brought in a new remote work visa to allow employees from around the world to stay in Dubai under a self-sponsorship arrangement.
Khushalani told Hotelier Middle East: “We faced our biggest challenge when Covid hit the hospitality industry last year, making us revaluate our strategy, keeping in mind the landlords, guests and employees, and adapting to the evolving landscape to target local residents instead. However, with travel back in full swing and Dubai being one of the biggest tourist destinations in the world setting an extraordinary example of safety, we have calibrated our approach yet again.
“With an increase in new visitors, we have witnessed a rise in prospective investors in Dubai’s real estate sector attributed to Dubai government’s efforts in introducing lucrative visa options. Within the real estate ecosystem, more landlords are keen to list their properties for short-term rentals to leverage the significant increase in in-bound tourism,” he added.
