Dubai-based real estate broker fäm Properties has announced plans to grow its total assets under holiday home management to AED1 billion ($270 million) between City Walk, Downtown and Dubai Marina by the end of this year.
The company currently has signed up assets of more than AED300 million under its holiday homes licence from the Department of Tourism and Commerce Marketing (DTCM), it said in a statement.
Earlier this month, DTCM launched a plan to develop a timeshare market in Dubai to help broaden the tourism sector.
Firas Al Msaddi, CEO of fäm Properties, said it is the latest in a series of government measures which are boosting Dubai real estate by increasing rental revenue for landlords and attracting new investors.
“Although the long-term occupancy trend remains healthy in Dubai, it has slowed down in the past two years due to the massive supply of properties,” he said. “By embracing the concept of holiday homes and introducing legislation, the government has created a new revenue stream for landlords. They can have tourists as tenants for the first time and this increases occupancy rates.”
Added Al Msaddi: “It’s a perfect example of how Dubai reacts promptly to global market challenges and continues evolving, not just to keep up with the world’s leading cities, but to overtake them by being consistently creative and innovative.
“Even in cities like London, Airbnb is not directly a government-regulated business. The fact that it is 100 percent regulated here, by the DTCM as well as the Dubai Economic Department, shows how far ahead Dubai is in its thinking.”
He said: “At times like the present, an over-supply of residential property means it takes longer to find tenants. These factors will persuade more landlords to choose the holiday homes option. They know they won’t be tied up by tenants’ rights of at least two year’s notice to vacate, or be held back from increasing rent for the first two years.”
Landlords intending to sell can earn rental income up to the last day of ownership. To generate regular income, they need to ensure excellent daily up-keep.
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