Dubai real estate industry is thriving with 30% increase in demand compared to last year in short-term rentals. The real estate is offering high rental returns to investors and fancy residence space to tenants and visitors.

The increase in demand of property space for short-term in industry is due to the rise in tourism and demand for flexible living options which improved the returns for investors up to 20% more compared to usual leases. Though long term leases offer steady income stream, averaging annual return of 7%.

In short-term rental options, families seek for spaces that matches their lifestyle needs with vibrant spaces and ease of road connectivity while investors consider properties that offer exquisite experiences with promising returns. Tourists looking for experiences prefer accommodation in high-end areas while families preferer spacious spaces or a holiday home over hotel which gives an opportunity to investors to charge high rentals.

Some areas have gained more popularity for short term rentals and are in high demand. The most popular short-term rental areas include

1. Business Bay

   

2. Arjan

   

   Source: Google

3. Jumeirah Village Circle

4. Downtown Dubai

5. Palm Jumeirah

6. Damac Hills

These areas offer luxurious amenities and serene communities providing exclusive experiences and stunning views.

Key factors for investors while catering the demand for short-term rental market cover

• Clarity in regulatory matters and strict compliance

• Improved and convenient technical advancements

• Promoting sustainability practices

• Use of trusted and reliable platforms or real estate consultant

Dubai real estate is observing a boom in short term real rental returns with a chance of new players joining the market. It is anticipated that the trend of short-term rentals will be on rise in coming years with some developers delivering 100+ units while other may exit the market. Technological advancements will be on the rise with features facilitating residents and improving their experience. It is further expected that government will focus on regulations and guidelines to ensure compliance.

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