As COP28 concluded with unprecedented tourism inflow, Dubai’s short-term rental market reaped the rewards with rental rates surging over 50%. According to market sources, landlords offering holiday apartments cashed in on enormous demand during the climate meet, averaging anywhere between Dh1,500 to Dh4,500 per night depending on location and property scale.
Prime areas like the Palm Jumeirah, Dubai Marina and Downtown Dubai commanded the highest premiums, with some high-end villas on the Palm breaching Dh4,500 per night. Even regular two-bedroom flats in the Downtown District saw substantial rate increases to nearly Dh2,500. With bookings remaining strong through the festive period until early January, rates are projected to climb further in the coming weeks.
The bonanza stands in stark contrast to previous years when demand declined in the first half of December as tourists avoided traveling close to holidays and many residents traveled home. Property owners interviewed indicated rates usually dipped 20% during this period. However, COP28 threw seasonality out the window, generating bookings back-to-back throughout the month.
This unexpected surge allowed many investors to immediately list their new-build apartments on short-term platforms from October itself to leverage the rush. Over three-fourths of units were fully booked out by mid-December, with some investors reporting room rates surging 50% year-on-year on certain dates.
Emerging as a popular contender is Dubai Creek Harbour, located near both the airport and Downtown Dubai. The submarket is attracting cost-conscious business travelers and new residents house-hunting, with contemporaries noting double-digit enquiries for the family-friendly area.
While prime locations continue dominating holiday rentals, Creek Harbour is strategically placed to tap the extended-stay segment. With properties offering good value and proximity to key areas, more investors are likely to divert upcoming stock to the neighborhood.
According to market sources, landlords offering holiday apartments cashed in on enormous demand during the climate meet, averaging anywhere between Dh1,500 to Dh4,500 per night depending on location and property scale. Prime areas like the Palm Jumeirah, Dubai Marina and Downtown Dubai commanded the highest premiums, with some high-end villas on the Palm breaching Dh4,500 per night. Even regular two-bedroom flats in the Downtown District saw substantial rate increases to nearly Dh2,500.
As COP28 exits with flying colors, Dubai’s short-let market seems poised for a blockbuster first quarter of 2023. With its tested events hosting abilities and brand as a tourist hotspot, the emirate is undoubtedly cementing its place on the global map – buoying the prospects of its burgeoning holiday homes industry.
