By Sam Bridge
GuestReady Dubai reveals that landlords can earn up to 39% more than they would during a typical week when a big event takes place in the emirate
GuestReady Dubai, a holiday home management company, has revealed that landlords can earn up to 39 percent more than they would during a typical week when a big event takes place in the emirate.
Leveraging insights from data provided by AirDNA, which analyses the performance of over 10 million vacation rentals across 80,000 cities worldwide, GuestReady Dubai has identified Dubai Jazz Festival, Arab Health, the Dubai International Boat Show, the Dubai Duty-Free Tennis Championships, the Dubai Design Week, and Expo 2020 Dubai as major events where hosts can maximise their earning potential.
With the three-day Dubai Jazz Festival set to take place at the end of next month, the company said landlords can earn an average revenue of AED2,921 with RevPAR going up 35.55 percent at AED584.2 from 26-28 February.
It added that average nights per booking is set to be seven as opposed to 6.21 nights without the event, and booking lead time is expected to be 44 days.
As for Expo 2020 Dubai, RevPAR is projected at AED560-802 with eight nights per reservation, and a booking lead time of 34-62 days.
Reem Al Khatib, managing director GuestReady Dubai, said: “In line with its vision to be a leading cultural, entertainment, retail, and investment hub, Dubai has been organising a number of mega events packed with a host of activations and festivals every year and as a result, the city has witnessed progressive improvement in annual visitor footfall growth.
"With 2020 being a milestone year for the emirate as it is set to host highly anticipated events such as Expo 2020 Dubai, holiday homes are projected to experience a substantial increase across three key performance indicators of occupancy, ADR and RevPAR. ”
During the summer period between May and September, rental homes in Dubai experience a low season with the average daily rate (ADR) ranging from AED 467-565.
However, all active properties in Dubai can look forward to earning AED79.65 million in revenues, with an expected ADR of AED495 and average nine nights per booking, during the annual citywide shopping extravaganza Dubai Summer Surprises, which is set to run from June 21 to August 3.
GuestReady Dubai said RevPAR per day is expected to go up to AED318.43 during the event from non-event day RevPAR of AED228.83 with a booking lead time of 38-46 days.
It added that vacation rental owners in Dubai are projected to enjoy AED571-800 in ADR during the February-April and November-December high season period.
December is expected to be the busiest month and landlords can charge an average of AED800 per night for a one-bedroom flat and AED1,047 for a two-bedroom flat, with New Year’s Eve fetching an average of AED4,000 for a one-night stay for a 2-bedroom flat.
Dubai last week announced an administrative order to clarify rules governing the thriving holiday home industry in the emirate following a dispute last year.
Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism) did not give specifics about the order other that saying it outlines regulations for operators, homeowners and authorised tenants, who wish to obtain a holiday home licence.
However the announcement follows a dispute in September when Emaar issued a letter calling on all holiday home businesses to cease their activities in the Downtown Dubai for short-stays, especially in the period leading up to the New Year festivities.