Short-term rentals the smartest move
As the travel and tourism sector in Dubai is slowly moving forward in its recovery course from the ill effects of the Covid-19 pandemic, the buzzword that is making the rounds is ‘shortterm rentals’. Over the past year, you’ve either stayed at a short-term rental or have earned a huge income off it.
With the drastic rise of short-term rentals, it almost feels like they were made for the pandemic. In fact, many short-term rental companies and owners have reported a 90 per cent average occupancy throughout the pandemic, especially in popular areas, including Palm Jumeirah, Downtown, JBR, Dubai Marina and City Walk. On the other hand, the UAE recorded a 54.7 per cent hotel occupancy rate on average in 2020.
But why are short-term rentals gaining so much popularity? Around the globe, tourists travel to Dubai for its cosmopolitan environment, friendly locals, world-class infrastructure and unparalleled hospitality. However, with social distancing and other rules and regulations due to the pandemic, it was almost impossible for guests to visit hotels while being assured of their safety.
However, with short-term rentals, guests can enjoy a completely contactless stay in a fully-furnished and wellequipped property. This includes luxuries like private pools, a full-service kitchen and room service with laundry, cooking and cleaning included. Moreover, guests don’t need to worry about exposing themselves to other people while waiting in lines during check-in and checkout. With certain properties, you can even enjoy beautiful views and have easy access to the beach.
In a nutshell, a short-term rental gives you the opportunity to do everything you were afraid of enjoying without worrying about privacy and safety. For example, you
In a nutshell, a short-term rental gives you the opportunity to do everything you were afraid of enjoying without worrying about privacy and safety
can get out of the city and stay near the beach or desert for a few weeks while still continuing with your work, or you could get out of the suburb and enjoy the fast-paced and luxurious city life for a while.
When it comes to property investors, there’s no doubt that this is one sector that the pandemic has had a positive impact on. The real estate industry in Dubai was at an all-time low before the pandemic hit, but that took a turn for the better when holiday homes started growing in popularity, giving owners higher returns as compared to long-term leases.
The rise of the short-term rental market is no doubt fairly recent. However, it’s no different than investing in the stock market or cryptocurrencies. The only difference is that the short-term rental market offers more stability and lower risks, mainly because it’s relatively easy to find a tenant, whether it’s a studio in International City or a mansion in Emirates Hills.
Moreover, you have the flexibility to sell the property at any time you want. As per my experience and expertise, I believe that a short-term rental can earn double than a long-term lease over a threeyear period time frame if managed and marketed well.