Leading UAE-based developer fäm Properties has plans to grow its total assets under holiday home management in Dubai (between City Walk, Downtown and Dubai Marina) to Dh1 billion ($272 million) by the end of this year, said a top official.
The developer currently has signed up assets worth more than Dh300 million under its holiday homes license from the DTCM at City Walk in Dubai, remarked Firas Al Msaddi, CEO of fäm Properties.
Dubai government initiatives driving the growth of short-term property rentals show an innovative city prepared to tackle global market challenges head on, stated Al Msaddi.
Earlier this month, the Department of Tourism and Commerce Marketing (DTCM) launched a plan to develop a timeshare market in Dubai to help broaden the tourism sector.
Al Msaddi said it was the latest in a series of government measures aimed at boosting Dubai real estate by increasing rental revenue for landlords and attracting new investors. Holiday homes can bring up to 15-25 per cent more revenue than long-term rentals, he said.
“Although the long-term occupancy trend remains healthy in Dubai, it has slowed down in the past two years due to the massive supply of properties,” he noted.
“By embracing the concept of holiday homes and introducing legislation, the Government has created a new revenue stream for landlords. They can have tourists as tenants for the first time and this increases occupancy rates,” he added.
Al Msaddi said: “It’s a perfect example of how Dubai reacts promptly to global market challenges and continues evolving, not just to keep up with the world’s leading cities, but to overtake them by being consistently creative and innovative.
“Even in cities like London, Airbnb is not directly a government-regulated business. The fact that it is 100 per cent regulated here, by the DTCM as well as the Dubai Economic Department, shows how far ahead Dubai is in its thinking,” he noted.
Al Msaddi said the right property with the right location tends to generate 15 to 25 per cent higher income for landlords compared with long-term rental.
“At times like the present, an over-supply of residential property means it takes longer to find tenants. These factors will persuade more landlords to choose the holiday homes option. They know they won’t be tied up by tenants’ rights of at least two year’s notice to vacate, or be held back from increasing rent for the first two years,” he added.-TradeArabia News Service
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