For the first time in ten years, US citizens are among the top five source markets identified by real estate management consultancies, which are seeing an increase in American demand for short-term rentals in the United Arab Emirates.
A report on short-term rentals claims that the historic first visit of a UAE president to Washington, DC, has bolstered UAE-US ties and is the reason for this surge. The Q3 AirDxb Dubai Short-Let Market report emphasizes this trend.
“Given that Americans already represent the second-largest nationality of guests at AirDXB properties with 12 per cent in Q3 2024, we anticipate a substantial increase in demand for short-term rentals in Dubai,” stated the report.
It added: “This represents a great example of where short-lets fit with corporate travel as well as holiday makers. The growing collaboration between Nasa, the UAE Space Agency, and the Mohammed bin Rashid Space Center is also contributing to this demand. This trend is especially beneficial for short-let properties in the Meydan and District One areas.”
Tourists favor lifestyle-driven communities
Known as one of the best places to travel in the Middle East, the United Arab Emirates enthralls tourists with its breathtaking cities, vast deserts, and gorgeous beaches.
Short-term renters, especially families, prefer lifestyle-driven communities with lively amenities and good connectivity, according to experts.
While investors see this as an opportunity to select properties with strong potential for high returns, consumers are more concerned with finding unique experiences offered by diverse hosts.
Vinayak Mahtani, CEO of bnbme Holiday Homes, said: “For the first time in 10 years, we are seeing the US residents in our top five source markets; they have taken a place from China. It has to do with the efforts of Dubai Tourism who have actively been targeting the US consumer base with social media and marketing. Dubai is an aspirational brand in the US and many people are excited or inquisitive to visit Dubai.”
He added, “We are seeing both corporate and leisure guests travelling from North America; Emirates, with all its North American destinations, has helped as well.”
Easy access to city’s attractions
In addition to the rise in demand, some locations are also gaining recognition for the short-term rental options they provide.
Areas like Business Bay, Arjan, Jumeirah Village Circle, Downtown Dubai, Palm Jumeirah, and DAMAC Hills are especially well-liked, according to Anthony Joseph Abou Jaoude, Founder and CEO of Primestay, a vacation home rental company in Dubai.
These energetic areas provide a unique experience and convenient access to the city’s attractions, combining top-notch facilities with hip neighborhoods.
He said: “In recent years, Dubai has become a luxury travel destination, with visitors willing to pay more for high-end accommodations. A significant trend is that families and groups prefer larger holiday homes over multiple hotel rooms, driving up the demand for vacation villas and spacious apartments for short-term rentals.”
Joude added, “In early 2023 up to so far in 2024, Dubai’s rising demand for short-term rentals presents landlords with lucrative opportunities for high occupancy rates and attractive rental yields. Dubai’s vibrant tourism scene ensures strong demand for short-term rentals, offering landlords and investors a steady and profitable income stream.”