Exclusive: How Holiday Homes are the newest UAE trend
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.
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.
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.
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.