Dubai holiday homes market sees a spike

 

vacation, home and travel concept - sea view from balcony of hom

The broader real estate market in Dubai and the UAE may be under pressure, but demand for holiday homes has gathered pace.

Department of Tourism and Commerce Marketing (Dubai Tourism) data shows, that as of July 2015, 37 operators were licensed to rent out holiday homes, with 800 units registered.

DTCM, which is tasked with regulating holiday homes in line with the hotel sector, believes holiday homes will benefit the broader tourism industry and contribute to Dubai’s mission of welcoming 20 million visitors per year by 2020, by “broadening the range of accommodations available to visitors”. At the same time, it will also provide an additional stream of revenue for property owners who don’t want to rent out their properties.

A decree issued in November 2013 by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, introducing a new law and regulations governing holiday homes in Dubai has pushed the sector’s development, says the tourism office.

“We have made great progress in setting up regulations for holiday homes. These are designed to benefit both home owners and guests by ensuring the holiday homes market is aligned with the rest of Dubai’s tourism industry and maintains the high standards for which the emirate is known,” said Khaled Bin Touq, Executive Director, Licensing & Classification Sector at Dubai Tourism.

He urged operators and owners renting out holiday homes “to ensure their properties are licensed through Dubai Tourism in order to benefit from being part of Dubai’s tourism framework and from the city’s increasing number of visitors.”

Currently, several homeowners and tenants have been using platforms such as Airbnb.com to offer homes to holidaymakers, but not all of them are registered with DTCM and could be operating in a regulatory vacuum. More than 1000 properties are registered with Airbnb in Dubai alone, ranging from beachside villas to shared bed spaces.

 

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