Dubai issues decree to create holiday homes market

Dubai ruler Sheikh Mohammed sets out plan for new initiative to boost both tourism and real estate markets
Dubai issues decree to create holiday homes market
Ruler of Dubai, Sheikh Mohammed bin Rashid al-Maktoum. (AFP/Getty Images)
By Andy Sambidge
Sat 07 Dec 2013 11:56 AM

Sheikh Mohammed bin Rashid Al Maktoum, in his capacity as the ruler of Dubai, has issued a decree to set out regulations for the creation of a holiday homes market in the emirate.

The move aims to contribute to the growth of the tourism industry by broadening the range of accommodation available to visitors, news agency WAM reported on Saturday.

The decree dictates that Dubai's Department of Tourism and Commerce Marketing (DTCM) will be responsible for the granting of licenses to homeowners who intend to rent out a furnished residential property on a daily, weekly or monthly basis, according to a statement issued by The Government of Dubai Media Office.

The decree dictates that DTCM will conduct inspections of the properties to ensure they meet the required standards; and will create a database of all licensed properties in Dubai.

Two new classification standards will be added to the existing Hotel Classification framework, with holiday homes rated as either Standard or Deluxe.

Helal Saeed Almarri, director general of DTCM, said: "The regulation of the renting of properties as holiday homes will have a considerable positive impact on two of Dubai's key industries - tourism and real estate.

"With regards to tourism, in order to achieve the target of welcoming 20 million annual visitors to Dubai by 2020, one priority is the supply of visitor accommodation and broadening the range of accommodations available is a major part of this.

"We are working with the private sector to bring more five star hotels to the Emirate and in September of this year, DTCM announced a financial incentive for the development of new three and four star hotels.

"Now, under the directive of Vice President and Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, the licensing of properties as holiday homes will add further accommodation options."

He added: "By including holiday homes as part of our hotel classification framework, we will ensure that visitors can book a private apartment, townhouse or villa with full confidence that the accommodation is of a quality standard, has the appropriate insurances, and is managed by a qualified party."

He said the decree would provide another potential revenue stream for homeowners in Dubai and an alternative to renting out the property on an annual basis.

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