Holiday homeowners and landlords had a lot to celebrate in this New Year as Dubai’s holiday homes record a bumper New Year weekend. Luxury properties in key areas fetched up to Dh 50,000 a day as visitors were willing to pay for premium and executive properties in the city. Although the Omicron variant of COVID-19 sparked some concern among the landowners during the festive seasons, the property sector showed astonishing progress due to more reasons than one.
Villas and apartments located within a few meters of the EXPO 2020 sites were high in demand while other key areas also showed a record occupancy rate. Real property owners and investors presume these overnight gains to be caused by tourists and other visitors seeking short-term rental properties in the city, instead of rooms or hotels.
What spiked the demand?
EXPO 2020 is undoubtedly a huge triggering agent as travellers from around the globe made Dubai their itinerary highlight for the New Year. A fair increase in the demand for short-term rental properties was seen throughout the months covering EXPO 2020, a trend that is expected to continue through the first half of 2022.
Apparently, Rental properties located around the EXPO 2020 sites were hugely in demand including Jumeirah Estate and Town Square. Meanwhile, key property areas of Jumeirah Beach Residence, Palm Jumeirah, and Dubai Marina showed seasonal occupancy rates continuing the momentum set by the latter half of 2021. Apartments around Burj Khalifa and Dubai Downtown with visibility of fireworks showed almost 100% listing, especially on days surrounding New Year’s Eve.
In addition to the EXPO 2020, the long weekend, Golden Jubilee celebrations, and Global village attracted visitors from both home and abroad. Moreover, recent reforms in Visa regulations, ownership rules, and UAE’s effective tackling of the COVID-19 pandemic have attracted a huge number of people to the city, visitors, and residents alike.
Why holiday homes?
Property analysts in Dubai have found holiday homes and luxury villas to be the new favourites in Dubai, especially during the pandemic era. The concerns surrounding the COVID-19 pandemic caused visitors to look for safe and secluded houses instead of hotel rooms while the work-from-home system resulted in residents looking for spacious, furnished residential apartments.
Key holiday home locations in Dubai
No-brainer, the most sought-out short-rental homes are in and around the key tourist areas like Downtown Dubai, Dubai Marina, and the Palm. However, increasing demand for properties in areas like the City Walk, Jumeirah Islands, and Jumeirah Beach Residence is also seen. Currently, almost all properties surrounding the EXPO 2020 sites are yielding higher rental yields, a trend that is expected to continue for the upcoming years as well.
As more people are making Dubai their ‘second home’, the demand for holiday homes is expected to rise further. For the past 17 years, Flying Colour has been helping clients build their dream venture in Dubai in an easy and hassle-free manner. Please feel free to mail your queries at email@example.com or contact us at +971 4 4542366.