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Is Vacation Home Rental Business Profitable in Dubai?

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  • Is Vacation Home Rental Business Profitable in Dubai?
  • Mon 12 Jul 2021 | By : Flyingcolour
blog-post-image
[vc_row][vc_column][vc_column_text]Dubai is now undoubtedly one of the most sought-out tourist places in the world, the Commercial Hub being a place for adventurous activities, romantic getaways, and soothing vacation retreats. In 2019 alone Dubai welcomed a whopping number of 16M visitors to the city alone, the number which is only expected to be increasing in the coming years. Accordingly, the demand for vacation homes is on the rise for the past few years in the mainland as tourists are now seeking the options of rental properties for both long-term as well as short-term vacation visits. With Dubai now getting all ready to host the EXPO 2020, there cannot be a better moment for business setups relating to home rentals and the like. According to the UAE Department of Economic Development (DED), the Vacation Home Rentals in UAE include furnished accommodation rented to tourists and vacationers as a whole (splitting of the property into separate rooms or beds not allowed) on a daily, weekly, monthly basis with the license holder as the manager of the properties. The UAE Decree No. 41 of 2013, allows authorized housing units to lease their property for public accommodation, given, the regulations as dictated by the latest Administrative Decision No.1 of 2020 are followed. The Department of Tourism and Commerce Management (DTCM) and DED are the regulatory bodies whereby the DTCM possess the authority to accept or reject license applications, issue conditions and monitor the compliance of business setups related to rental homes.  Rental company setups are now on a rise in Dubai mainland and the following are the reasons why this is the best time to set up a vacation rental business in Dubai:
  • Dubai is now growing to be the Commercial Hub of the world and people are pouring in from different parts of the globe for work as well as recreation.
  • In 2019 alone some 16M people visited Dubai mainland, which is expected to rise to 20M – 25M in 2021.
  • The EXPO 2020 is set to attract visitors and tourists from all over the world who will be residing in the city for the course of the event.
  • Families are now preferring comfortable holiday homes and fully furnished rental houses are much preferred over hotel rooms.
  • The emerging business sectors in the mainland and the transformation of Dubai into a technological hub and “smart” city, are attracting more visitors aiming to stay and do their work right from the Dubai mainland.
  • The proximity of major tourist attractions increases the demand for comfortable houses inside the city itself.
  • Dubai is also advancing in medical and healthcare facilities and thus opening its doors to the world in more ways than one.
  • Dubai is also one of the safest cities in the world, which ensures visitor’s feeling of security whilst searching for a comfortable vacation experience.
  • Dubai, being one of the sought-out destinations, tourists are attracted to the concept of holiday homes for a complete experience of the city.
  • The authorities have made it easier to get a license and permit for starting rental houses, ensuring not only safety but also compliance.
  • Business setups under the Tourism and Hospitality sector are now one of the most profitable professional setups in Dubai and are only expected to rise after the EXPO 2020.
Starting Vacation Home Rentals in Dubai is not only easy but also profitable if you have the help of an expert who can lead you through the process to ensure quality and compliance.  
Read more on: Starting a rent a car business in Dubai
Flying Colour Business setup services has been helping clients for the past 17 years to set-up their business in a hassle-free manner. Please feel free to mail your queries at info@flyingcolour.com or contact us at +971 4 4542366.[/vc_column_text][/vc_column][/vc_row]

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