Short-term rental market in Dubai sees more growth

DUBAI: The overall property market in Dubai is picking more pace due to Expo 2020 Dubai and a successful COVID-19 vaccination programme. The short-term rental market in the emirate is also currently very strong and it will continue to grow for the next couple of years, said Vinayak Mahtani, CEO of bnbme, a Dubai-based holiday homes management company.

He said, “The trend we are seeing is investors are looking at properties which are suited for the short-term rental market. Area like Blue Water and apartments on the Palm are giving them double digit yields. Properties are also coming up with short-term rentals in mind. Over all it is a very positive trend and despite the high increase in property prices double digit yields are still very much possible.”

“The new developments- especially in JBR and the Palm jumeirah are witnessing the trend. If you look at the properties they are still very much undervalued compared to global power cities and Dubai is surely one of them.”

Mahtani added,“a client recently bought a 3-bedroom apartment with a full sea view from all the rooms and access to their private beach for $1.5 million. If you look to buy that in LA, Frisco, New York or any major city in your Europe you are talking 4-5 million upwards. So Dubai is still showing some great value is the real estate market.”

He said,“with these assets being undervalued and hospitality looking upwards investors can look at doubling their investment in a period of 5 years. This is through rental income and property appreciation. I don’t think anywhere else in the world can off you this return.”