The second half of the year has started on a strong note for the Dubai property market as it continues its golden run. The emirate, withstanding the global recession, is gradually overtaking other advanced metropolises in terms of real estate growth.
August 2022, in particular, broke a 12-year record with 9,720 sales deals valuing AED 24.3 billion. The previous two months, June and July, also crossed AED 20 billion mark in terms of sales value. Taking into account the figures produced in August, the Dubai property market has clocked investments worth AED 160 billion. This growth isn’t only limited to sales. The rental segment, too, has shown an upward trend, with the Dubai short-term rental market gearing for more growth in the time to come.
The Growth in the Dubai Rental Market
Key performing areas in Dubai have recorded high activity in the rental market. It is fuelled by the influx of visitors in Dubai and the strong demand for rental properties in Dubai.
Statistics reveal that Dubai Marina, Downtown Dubai, and Business Bay remained the preferred choice among renters in the second quarter of 2022. These communities witnessed a 23%, 24%, and 21% increase in rental prices, respectively. With this increase, the price of rental properties in Dubai Marina now stands between AED 40k to AED 230k, depending on the configuration.
The Expected Boom of Dubai Short-term Rental Market
Dubai is often considered the ideal spot when it comes to hosting international events. The fact that it hosts many entertainment and sports events testifies to this fact. It has also set an unprecedented example by successfully hosting a global event, Expo 2020, when the entire world was still reeling from the after-effects of the novel coronavirus.
When these events are hosted in Dubai, people from across the globe visit the emirate to attend them. This impacts Dubai’s economy in more than one way. Firstly, the hospitality industry benefits from this influx of visitors. Also, there’s increased activity in the Dubai short-term rental market as well, which benefits the real estate sector. Besides that, tourism and transportation are other sectors that leverage this situation.
Speaking particularly about short-term rentals, also called vacation homes, they remain a preferred choice of many because of their affordability. The recently concluded Asia Cup 2022 in the UAE resulted in an increased demand for residences in the Dubai short-term rental market. Similarly, the same pattern was noted last year when the country hosted the T20 Cricket World Cup.
FIFA World Cup 2022 to Boost the Short-term Rental Market
Qatar is all set to host the upcoming edition of the FIFA World Cup. It is a first-of-its-kind event that is taking place in the Arab world. Therefore, people from all parts of the world are expected to visit Qatar to enjoy the magnificence of this tournament, which will see the best teams fighting for the one coveted title.
While the event isn’t taking place in Dubai, the emirate is all set to benefit from it. This is mainly attributed to the limited supply of short-term rentals and accommodations in Qatar. Due to the proximity of both these locations, a huge number of visitors are expected to arrange their accommodations in Dubai. Hotels, resorts, and vacation homes are already reporting increased enquiries for stays. Needless to say, this will result in the growth of the Dubai short-term rental market.
To cater to the growing interest of football fans in the UAE for accommodation purposes, the government has already announced a multi-entry visa. This will allow them to fly from Dubai to Qatar to watch the matches in stadiums.
Latest reports reflect that landlords, who earlier used to rent their properties on a yearly basis, are now switching to short-term rentals. They are making this switch to cater to the rising demand for vacation homes in Dubai. This will benefit tenants, landlords, and the property market on the whole.
Other Events Taking Place in Dubai
Apart from the Football World Cup 2022, many other events, such as Dubai Airshow and Dubai Shopping Festival, are slated to take place in Dubai. Keeping in view Dubai’s reputation, many people will fly to the emirate to attend these events, thereby boosting the Dubai short-term rental market.
To sum it up, the Dubai short-term rental market is expected to grow at a rapid pace in the near future. With prices and demand on the rise, this makes it an ideal time to buy property in Dubai, whether you are an investor or an end-user.