Is becoming a vacation rental owner really all it’s cracked up to be? For cities like Dubai, the answer is YES!
The Dubai holiday homes market has been rapidly growing since the onslaught of the pandemic. More investors have increasingly looked to purchase a property for the purpose of using it as a vacation rental in Dubai with the intent to earn profit.
In fact, studies have reported that UAE residents are earning up to 50% more by renting their property out as a holiday home rather than traditional renting. “Depending on which area their house is in, an owner can earn anywhere between 10 and 50 percent more than the traditional long-term rental. The biggest advantage is that once they start renting out their houses, homeowners can earn 25% more year on year…” added a holiday home hotelier.
Advantages of a vacation rental investment
- You can increase your prices based on season and demand
- Holiday homes generate higher ROI
- A vacation rental can offset the costs of your retirement
- The Holiday Homes market is growing more popular and regulated in Dubai
Dubai ranked as the world’s 4th top city for holiday homes
A new report mentioned in Khaleej Times states that Dubai ranked as the world’s 4th top city for holiday homes while Abu Dhabi ranked 3rd. The report also demonstrated that the cost of living in Abu Dhabi and Dubai for a family of 4 is much lower than in other popular holiday home cities like Rome, New York, Lisbon, and Marbella.
Moreover, tourists will be flying in and out of the country because of recent iconic developments like Ain Dubai to experience the various leisure activities along with luxury amenities the city has to offer.
Staycations in demand
Due to the travel restrictions during the height of Covid, residents become tourists in their own city and chose to compensate for traveling abroad by having staycations in Dubai. This increase in demand significantly accelerated the growth of Dubai’s holiday home market.
“People have started to prefer staying in holiday homes as opposed to hotels for a number of reasons. This is especially true since the Covid pandemic. People prefer the space and luxury a holiday home provides rather than spending their time off in a cramped hotel room.”
Challenges you face with a vacation rental in Dubai
Similar to any kind of investment, there are challenges you face when it comes to managing your own holiday home. Some of these include:
- Holiday home rentals can be costly to manage especially with seasonal upkeep
- Vacation rentals are affected by economic downturns
- Rules and regulations can change
- There is a fair amount of competition in the market
- It’s not always easy to vet guests – most of the time you will be dealing with less than stellar guests
The good news is; that all these challenges can be solved by hiring a vacation rental manager! Key One Holiday Homes has been serving clients and guests in the industry for the last 7 years. Property owners trust in their abilities to provide the best vacation rentals management services in Dubai that ensure full-scale property care and maximum ROI!