Rising supply softens Dubai’s short-term housing market

Rising supply softens Dubai’s short-term housing market

Short-term rents in Dubai’s housing market have fallen this year as the rapid rise in supply begins to outstrip demand. Vinayak Mahtani, CEO of bnbme holiday homes, told AGBI that over the past three years, he had seen 100 percent growth in the short-term rental market. “It’s become a buzzword in Dubai, a trendy business,” […]

Fourfold increase since 2018

Demand not kept pace

9,200 more hotel rooms

Short-term rents in Dubai’s housing market have fallen this year as the rapid rise in supply begins to outstrip demand.

Vinayak Mahtani, CEO of bnbme holiday homes, told AGBI that over the past three years, he had seen 100 percent growth in the short-term rental market.

“It’s become a buzzword in Dubai, a trendy business,” Mahtani told AGBI. His company entered the short-term rental market in 2018 when there were around 5,000 units on offer in Dubai. This has now increased to around 20,000 over the past five years. 

While supply has increased fourfold, Mahtani said, demand in Dubai’s short-term housing rental market has not kept pace. Revenue per available room has increased by around 10 to 12 percent in the past year, but Mahtani estimates that the increased supply has seen rates stabilise this year.

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