By TMEEX 
Dubai Holiday
Dubai Holiday: Visitors booking a holiday home in Dubai for the busiest week of the year are having a pleasant surprise. Many of them are finding short-stay daily rentals at some of the most in-demand locations to see in the New Year and have not seen much of a change from a year ago.
Even if it’s a luxury stay out on the Palm and you are paying Dh10,000 for the night, that’s still more or less on par with rates at the same time last year.
In fact, in quite a few instances, short-stay rentals are even ‘slightly lower compared with rates over last 2 years’, said Anna Skigin, founder of Frank Porter, which specializes in holiday home consultancy. “There are more options in the Dubai holiday home market for all levels of guests – from premium to middle/low range. There is a lot of supply at the moment in all categories.
“The Palm Jumeirah, Dubai Marina, JBR, Bluewaters Island, Downtown Dubai, Business Bay, and DIFC remain prime locations for the Christmas and New Year period.”
Supply catches up
The rate stability in the short-stay market is quite at odds with what’s happening in the rest of the rental market. Annual rents across Dubai managed to put in another double-digit increase, even though in some upmarket locations, rental growth has slowed down considerably since July last. Dubai is still the leader in the UAE in holiday homes. I don’t think other areas attract the total demand that a single area in Dubai does
As Anna says, more supply is clearly what’s controlling rental dynamics in this year’s peak holiday booking. On whether any new destination has emerged as a possible magnet for holiday rentals, she said: “Dubai Hills remains a premium location, but it’s not a top choice for short-term rentals due to its focus on private villas. While it’s well-suited for high-end short stays, it’s not considered an ideal option for general short-term rentals for a typical tourist.” Dubai Hills remains a premium location, but it’s not a top choice for short-term rentals due to its focus on private villas
Vinayak Mahtani, CEO of bnbme, echoes that: “Dubai Hills attracts a different type of guest. It’s not the leisure business (visitor) that generally comes at this time of the year.”
Any chance of last-minute bookings?
Mahtani is hoping there will be a few visitors heading to Dubai – but who haven’t yet made up their minds where to stay. Chances are the more last minute a booking happens, the better the surge pricing prospect. “We have a few apartments that we expect to cross the $10,000 mark for December 31,” he adds.
“Our highest ADR (average daily rate) came on a penthouse booked right on New Year’s Eve (last year). The value of that booking alone covered the nights it was not booked.
“The market generally works in a way that the earlier you book, the cheaper you get the premium properties. New luxury homes that have come to the market in the last few days still attract a high premium. The properties that have not been invested into in terms of look and feel or with poor review scores are the ones suffering.”
Holiday homes/short-stay rentals in Dubai have had an uninterrupted run of growth since late 2021 when the city was one of the first to open up after the Covid disruptions. Each subsequent December since had seen record asking rates, with last year’s New Year’s Eve setting quite a few records on that score, according to industry sources.
“There are always those wealthy visitors to Dubai wanting to spend New Year here but want to stretch their booking a holiday home to the last minute,” said a leasing agent. “This is where property owners and property management companies with holiday homes make serious money. It will be the same December 31, 2024…”
What will a short-stay cost in key Dubai locations?
* Dubai Marina penthouse: Dh3,295 to Dh10,000
* 1BR in Palm Jumeirah: Dh650 to Dh2,635
* 2BR in Palm Jumeirah: Dh824 to Dh3,270
* 3BR Business Bay: Dh1,209 to Dh4,060