On Monday, Dubai announced a new initiative targeting holiday homes in the emirate. The new initiative will require all holiday homeowners to display a QR code on the main entrances of their vacation properties in Dubai.
Dubai, which is home to over 21,000 holiday homes, will ensure transparency through this initiative, also allowing guests to view booking details and other essential information.
Speaking to Arabian Business, Allsopp & Allsopp operations manager for holiday homes Sheena Arilla said that this initiative could further provide maximum rental flexibility and yields.
“Statistics reveal the lucrative nature of the holiday homes industry, offering 20-30 percent higher income potential compared to rentals. With the tourism industry projected to soar in 2023, the commendable initiative of QR codes promotes transparency and benefits for end users, providing maximum rental flexibility and yields. It eliminates lengthy time and commitment in dynamic markets, presenting excellent sales opportunities. The introduction of QR codes in Dubai’s holiday sectors enhances transparency, customer service, and regulatory compliance. This ongoing commitment attracts visitors and investors to Dubai as a premier global destination,” she said.
The real estate company also noted an “upward wave” of tourism growth becoming an alternative for tourists, as property owners look to increase their return on investment.
Dubai’s holiday home market, in particular, is “flourishing” because of the emirate’s tourism industry and its many plans.
The hotel sector bounced back strongly in 2022, following the pandemic, with occupancy rates hitting as high as 73 percent, the company said, adding this was driven by international visitors, and the reopening of borders.
Moreover, the Department of Economy and Tourism (DET) saw a 97 percent year-on-year (YoY) increase in international visitors reaching 14.36 million.
This further resulted in Dubai’s occupancy rate being one of the highest in the world, surpassing Europe and Asia.
Holiday homes as an appealing real estate option
Short-term rentals also provide a more profitable option for property owners compared to traditional long-term rentals.
According to Allsopp & Allsopp’s February 2023 data, a four-bedroom villa in Dubai Hills earned AED354,807 in the holiday home market last year, surpassing the expected annual rent of AED280,000.
Similarly, a one-bedroom apartment in Dubai Marina generated AED238,906 in the holiday home market compared to an anticipated AED185,000 in annual rent.
These figures are projected to rise further with the continuous growth in tourism, making holiday homes an appealing investment.
Renting out a property as a holiday home offers greater convenience and flexibility than traditional annual rentals.
Property owners can reserve the property for their personal use or for visiting friends and family at any time.
Additionally, when it comes to selling the property, there is no need to provide a 12-month notice to long-term tenants, making it more attractive to potential buyers.
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