Saudi Arabia is now a second market covered by Silkhaus, a short-term rental marketplace with its headquarters in Dubai. Its platform is currently accepting reservations for property rentals in the Kingdom, which is about to become a sizable short-stay market in and of itself.
Silkhaus has secured “seven-figure” finance, led by Nuwa Capital and Oraseya Capital, to facilitate entry.
Additionally, Yuj Ventures, Nordstar, Impulse International, and a few family offices participated.
Silkhaus has raised more than $10 million in loan and equity funding prior to this round.
With some notable growth in each of the last four years, Dubai has clearly been a thriving destination for short-term/holiday property rentals. As a result, there are now numerous booking systems and property management firms that focus on this area.
Since then, as more people own and invest in real estate, other emirates have also permitted short-term leasing.
“The short-term rental economy of the GCC is experiencing a significant growth surge, and we are proud to be leading this growth,” said Aahan Bhojani, co-founder and CEO of Silkhaus in a statement.
There is “strong demand, particularly for one-bedroom apartments, which maintain the highest occupancy rates” in Riyadh’s Al Sahafa, Al Nada, and Qurtuba neighborhoods.
Riyadh rents
Short-term rentals in Riyadh cost between SR500 and SR700 a night, with longer-term stays resulting in lower rates. With Riyadh experiencing a significant development boom, more homes with various owners may be coming to market this year.
On whether Silkhaus plans to add other Saudi cities, Bhojani said: “Right now we are focused on Riyadh – it is the gateway to the Kingdom and we want to set our presence in a strong and sustainable way.”
Units in Dubai Creek Harbor, Al Barsha, and Dubai Production City are part of the company’s Dubai portfolio. While Emaar Beachfront continues to draw high-end demand, with average nightly spending up to 50% greater than the city average, these have “proved themselves among the most popular with an average yearly occupancy of over 90%,” according to a statement.
According to the firm, Yas Island, Al Raha, and Saadiyat Island have the greatest yield sites, and short-term rental rates in Abu Dhabi are comparable to those in Dubai.
“Their early achievements in the UAE serve as clear validation of the model’s potential and bolster our confidence in scaling it to additional cities across KSA,” said Nitin Reen, Partner at Nuwa Capital, which is one of the investors in Silkhaus.