For landlords, short-term letting is a way to see a high return on investment – in many cases, returns can be higher than annual rent.
In Dubai, there are huge opportunities in short-term lettings for short-term letting operators and also for landlords.
Owners with a second property who are looking for flexibility should consider letting short-term. This way, owners still have access to the property when they choose, and they receive an income from it when it’s not occupied by themselves or their family and friends.
Short-term lettings are also managed by short-term lettings operators, which is often less stressful than other management structures. They can expect all bookings, guest relations, maintenance and upkeep of their property to be handled.
The effects of Covid-19 on the short-term lettings industry
The pandemic has had a huge impact on travel and tourism and the industry has seen many cancellations and witnessed a significant reduction in bookings. And the future still looks uncertain.
However, short-term lettings are recovering well as anxious travellers are now avoiding hotels. People who are travelling for business and with their families are looking to stay in private accommodation as they are opting against hotel stays to avoid overcrowding. Further, short-term lets are often more affordable than a hotel stay.
Short-term lettings give guests the opportunity to cook their own food and keep their social bubble small whilse still feeling as though they have had a holiday and a break from their usual surroundings.
Many homeowners in Dubai own properties for investment purposes and choose an annual income.
We have seen many residents within the UAE book short stays in Dubai from other emirates such as Ras Al Khaimah, Abu Dhabi and Fujairah.
Landlords opting in favour of short-term lettings in 2020
In the age of coronavirus, I expected landlords to retreat from short-term lettings and rent their properties out annually. Many homeowners in Dubai own properties for investment purposes and choose an annual income.
However, due to the pandemic, annual rental prices have dropped. In 2020, Allsopp & Allsopp Real Estate recorded a 9 percent reduction in the average rental price of a property in Dubai compared to 2019, suggesting the market is now in favour of the tenant.
Leisure properties increase in 2020
There are a lot of listings in Dubai that cater to corporate business and many apartments are available for short-term lets.
However, accommodation for leisure outpaced corporate demand last year.
Short-term lets are often more affordable than a hotel stay.
This lift could be down to the pandemic and how residents are navigating through tough times. Many residents have expressed an interest in short-term lettings as they face uncertainty about their job and their future in the city and are giving themselves a little time to decide by renting monthly as opposed to signing a lease contract for a year.
Villas becoming increasingly popular for short-term lettings
Following market shifts, namely lower annual rental prices and increased demand for short-term lets, more villas have become available for short-term lets.
So, in the market that we are in at the moment, landlords of luxury villas are leasing their property short-term and keeping a close eye on the projected annual rent in the hope of renting annually in the near future, but still receiving a return on investment in the meantime.
As a holiday home specialist, our aim is to ensure that the property achieves 20 to 30 percent above the annual rent price of the property for short-term lets, net of the fees. Currently, clients looking to rent short-term in luxury villas are willing to pay high.
Lewis Allsopp, CEO of Allsopp & Allsopp.
by Staff Writer
More of this topic
The short-term letting industry is set to rise in Dubai
Why landlords are considering short-term lettings during the coronavirus pandemic
Lewis Allsopp, CEO of Allsopp & Allsopp.
For landlords, short-term letting is a way to see a high return on investment – in many cases, returns can be higher than annual rent.
In Dubai, there are huge opportunities in short-term lettings for short-term letting operators and also for landlords.
Owners with a second property who are looking for flexibility should consider letting short-term. This way, owners still have access to the property when they choose, and they receive an income from it when it’s not occupied by themselves or their family and friends.
Short-term lettings are also managed by short-term lettings operators, which is often less stressful than other management structures. They can expect all bookings, guest relations, maintenance and upkeep of their property to be handled.
The effects of Covid-19 on the short-term lettings industry
The pandemic has had a huge impact on travel and tourism and the industry has seen many cancellations and witnessed a significant reduction in bookings. And the future still looks uncertain.
However, short-term lettings are recovering well as anxious travellers are now avoiding hotels. People who are travelling for business and with their families are looking to stay in private accommodation as they are opting against hotel stays to avoid overcrowding. Further, short-term lets are often more affordable than a hotel stay.
Short-term lettings give guests the opportunity to cook their own food and keep their social bubble small whilse still feeling as though they have had a holiday and a break from their usual surroundings.
We have seen many residents within the UAE book short stays in Dubai from other emirates such as Ras Al Khaimah, Abu Dhabi and Fujairah.
Landlords opting in favour of short-term lettings in 2020
In the age of coronavirus, I expected landlords to retreat from short-term lettings and rent their properties out annually. Many homeowners in Dubai own properties for investment purposes and choose an annual income.
However, due to the pandemic, annual rental prices have dropped. In 2020, Allsopp & Allsopp Real Estate recorded a 9 percent reduction in the average rental price of a property in Dubai compared to 2019, suggesting the market is now in favour of the tenant.
Leisure properties increase in 2020
There are a lot of listings in Dubai that cater to corporate business and many apartments are available for short-term lets.
However, accommodation for leisure outpaced corporate demand last year.
This lift could be down to the pandemic and how residents are navigating through tough times. Many residents have expressed an interest in short-term lettings as they face uncertainty about their job and their future in the city and are giving themselves a little time to decide by renting monthly as opposed to signing a lease contract for a year.
Villas becoming increasingly popular for short-term lettings
Following market shifts, namely lower annual rental prices and increased demand for short-term lets, more villas have become available for short-term lets.
So, in the market that we are in at the moment, landlords of luxury villas are leasing their property short-term and keeping a close eye on the projected annual rent in the hope of renting annually in the near future, but still receiving a return on investment in the meantime.
As a holiday home specialist, our aim is to ensure that the property achieves 20 to 30 percent above the annual rent price of the property for short-term lets, net of the fees. Currently, clients looking to rent short-term in luxury villas are willing to pay high.
Lewis Allsopp, CEO of Allsopp & Allsopp.
Follow us on
Latest News