Exclusive: How Holiday Homes are the newest UAE trend

July 30, 2018 8:22 am

by Shilpa Mahtani- COO of bnbme, holiday homes by hoteliers

The holiday home market is heating up in the UAE.

As the real estate trend rises, so do the investment plans of each buyer.

Call it a vacation home, personal retreat, or a home away from home, holiday homes are defiantly the new way to go on earning a yield on your property.

While holiday homes operate on different consideration and dynamics, there are several benefits of short-term renting vs long term rentals.

Read: 6 interesting facts you probably didn’t know about Airbnb

Price fluctuations

It has been noted that the property prices are not stable, for both purchases and rentals.

This makes the income from renting out property much less per year.

In addition, having a tenant at the current market price compels you to continue the contract with them, even when the market moves upwards.

Wear and tear

Additionally, properties with tenants generally see a higher wear and tear than self-owned or short-term rented properties resulting in the property deteriorating or losing value over time.

Also, long terms rentals don’t allow most owners to use the property themselves.

Read: These two Arab countries are the most expensive for Airbnb listings

Rationale and revenue schemes

As such, most property owners are now embracing the concept of holiday homes, which provide an increase in occupancy rates as well as returns.

Holiday homes can bring up to 30% more revenue than long-term rentals.

In the UAE, holiday homes are picking up largely due to the increased number of tourists that visit the country every year.

The UAE is a family destination and visitors prefer to stay in an apartment with resort-like facilities for the same price as staying in a room in a hotel.

The options are much more than hotels and the experience can be customized.

Read SellAnyHome: 50% of buyers have a AED1 million budget


While tourist population serves as a major factor encouraging the growth of holiday homes, several residents choose to take short trips within the country, without venturing abroad.

As such, a staycation is another important factor that has been surging the demand for holiday homes in the UAE.

Holiday home management companies

At present several property owners manage their long-term rentals through real estate management companies, who have a low marketing reach, which results in fewer profits.

However, property owners have now come to realize the importance of short-term rentals and work in association with holiday home management companies that not only market the property like a hotel but also adhere to a guest screening policy, housekeeping and property maintenance and offer a holistic hospitality experience for both the property owners and the guests.

As a market, the UAE is known to adapt and evolve to latest trends, helping the country keep up with the world’s leading cities by being consistently creative and innovative, and holiday homes are soon becoming an important aspect of the city’s overall growth and development.

bnbme, holiday homes by hoteliers is a short-term home management company that strives to maintain its reputation by providing convenience for property owners as well as a comfortable and unique experience for holiday home guests.

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Hadi Khatib
By Hadi Khatib
Hadi Khatib is a business editor with more than 15 years' experience delivering news and copy of relevance to a wide range of audiences. If newsworthy and actionable, you will find this editor interested in hearing about your sector developments and writing about it.