Dubai short-term rental market poised for a surge

Dubai short-term rental market poised for a surge

Reduced supply of units ensure that rates will be high, expert says

The Dubai Marina is one of top popular choices for short-term rentals. - KT file

Published: Sat 21 Jan 2023, 5:11 PM

As Dubai’s real estate sector continues its surge, a number of homeowners who were renting out in the short-term rental space are now moving towards long-term contracts. But that is not necessarily a bad thing, says an expert.

“At this moment there is this transition happening — migration of short-term homeowners going to the long-term market. So there’s a reduced supply of short-term rentals available. As a result, rates are bound to go up and the short-term model will become more attractive again,” Gregory Lewis, founder of AirDXB, a premier short-term rentals company in the UAE, told Khaleej Times in an interview.

Occupancy levels on AirDXB properties saw an aggressive increase compared to the previous year. Noticeably, March saw a 99 per cent occupancy rate. Due to Ramadan, April saw a decline to 87 per cent and this rate was maintained on average throughout summer, beating 2021 for the same period, data showed.

September saw a rise past 90 per cent, and Q4 then sat at an average of 93 per cent.