Dubai is not all about luxury hotels. Renting Airbnb accommodation in Dubai has seen a notable rise. A special report has been published by Chestertons MENA a leading international property agency, highlighting the growth and popularity of Airbnb among investors and tourists in Dubai since 2015.
Increase of Airbnb accommodation in Dubai
The rules have changed and as a result the ease of regulations has shown a 161% increase in active listings which generate over US$3.3million. From 1,241 listed Airbnb units in August 2015 there were 3,249 units in August 2017.
The Airbnb concept is not to compete with the hospitality sector but to rather complement the accommodation offering on the Dubai market by providing an alternative travel experience to the visitors and “to achieve the emirate’s 2020 objectives” said Ivana Gazivoda Vucinic, Head of Advisory and Research, Chestertons MENA.
What makes Airbnb accommodation in Dubai attractive is the fact that “investors can expect an additional 5% return when compared to long-term leasing rental yields” said Gazivoda Vucinic.
The Dubai Department of Tourism and Commerce Marketing has signed an agreement with Airbnb in May 2016, to assist in regulating the accommodation offering on the market and to promote responsible hosting that will help to grow and diversify tourism in the emirate in line with Dubai’s strategy to attract 20 million visitors by 2020.
It is also important to note that the Average Daily Rates (ADR) for listings have retained consistent year-on-year levels with prices in August 2015 averaging US$153; in August 2016 prices averaged US$154; and in August 2017 the price was US$154.
The first three months of 2017, denoting peak tourism season, witnessed ADR of US$226, US$201 and US$204 respectively, further underscoring the popularity of the community-driven hospitality platform.
Great news for travelers who enjoy staying in Airbnb properties around the world. When you travel what kind of accommodation do you opt for? Let us know in the comments below.
Cover photo courtesy of Shamal Communications