Short-term rental services in Dubai; falling vacancy level- Challenges and Opportunities.

Life in Dubai is back on track. The local government is making all efforts to bring back the crowd to this beautiful city. Those efforts are reaping benefits; footfall in the shopping mall increased, and registration of new business has increased. Additionally, DLD (Dubai Land Department) has revealed real estate transactions have shown tremendous growth; single-day transaction has peaked at AED 400+million. 

The demand for short-term rental services also increased. To match the increasing demand,  all those involved in the real estate industry are trying hard to cater to their clients. The role of small-time players, where the demand of short-term visitors is met with the supply of partitioned bed spaces, rooms to find a job, a supplier, or a business partner not be neglected. Though the legal framework around this section is strict, there are many investors lured by the 'cash on cash' benefits offered by this segment. 

We all are well educated about the location benefits of immovable assets. Proximity to a factory, a hospital, and a better transport facility (i.e a new highway, a metro line) all add value to a property. Dubai metro added value to many properties in and around metro stations. One of such areas lies all along the lines of the green metro line just after Union station towards Etisalat Metro Stations. Post Covid-19, the demand for short-term rental accommodation all along with the metro stations such as Al Qiyadah, Stadium, Al Nahda, Freezone metro, Qusais, and Etisalat Metro has tremendously increased. Short-term pressure within a short period has reflected in the supply side and that eventually converted into a price increase. The occupancy rate of residential apartments has improved and many clients are reaping the benefit of this situation. Improved public transportation facilities attracted many job seekers and young couples to these areas, and many more wish to follow the suit. 

As I mentioned above, the role of small-time real estate investors is important in these areas. They connect the building owners with these broadly spared consumers. Understanding the needs and wants of the consumers is an important marketing skill one cannot avoid. Being a resident in one of these areas for more than a decade, a real estate enthusiast, and a professional in the real estate industry,  I have developed a good rapport with building owners, and real estate agents throughout this city. Even though the falling vacancy rate, and shortage in supply added pressure on rental rates, there are few properties available at competitive rental rates to meet the short-term demand. 

If you are one of the many aspirants moving to these green metro line areas such as Al Qiyadah, Stadium, Al Nahda, Freezone metro, Qusais, and Etisalat Metro, please do not hesitate to contact me on my below email ID, 

ibru.sme at gmail (dot) com 

22 May 2022