A guide to buying a holiday home in Dubai 2022
Letting out a property is a great way to earn money and generate passive income. In financial terms, short-term rentals can maximize your return on investment, especially with Dubai’s tourism boom. So how do you get started in buying a holiday home in Dubai for 2022?
There are many types of investment opportunities in Dubai from fixer-uppers to new properties. Expo 2020 has caused a surge in visitors to the emirate and the numbers are only expected to rise. When looking for a property in Dubai to let as a form of a holiday home, there are 4 things you need to keep in mind.
4 things to look for when buying a holiday home in Dubai 2022
- Location
- Appeal & Appearance
- Facilities
- Benchmarking
Location
Some of the most popular places for holiday homes in Dubai are Downtown Dubai, Dubai Marina, Palm Jumeirah, and Business Bay. Location is a crucial factor and should hold significant weight when you decide which property in Dubai you would like to purchase.
Other great spots are those near popular tourist locations but in semi-private areas where guests can have peace and privacy while still staying close to hub spots.
Before investing in a holiday home in Dubai, make sure to check which transport links and business centers are nearby in case your guests will not be driving around the city.
Appeal & Appearance
Holiday homes with the highest visual appeal perform the best when it comes to bookings. Great views, lots of lighting, and a neatly styled holiday home in Dubai can have an impact when guests choose a vacation rental to book.
If you’re planning to furnish your own property, make sure to work with a professional who knows all the basics and essentials to have in a holiday home in Dubai. Key one Holiday Homes work with a network of Interior Designers who can help in this field.
Facilities
In a location where most holiday homes are priced the same, amenities and facilities your property offers can make the difference between guests choosing to book your property in Dubai or not.
Make sure your holiday home has the basic facilities like:
- Air Conditioning
- Washing Machine
- Dishwasher
- Hairdryer
- Iron & Ironing board
- Key to each bedroom so guests can lock their door
- Swimming Pool
- Gym
Benchmarking
Research the market and the properties listed within the vicinity of your chosen location. Compare your property against other listings and this will give you a potential rental yield you can earn if you choose to buy that holiday home.
Consider how much they are charging and what amenities they offer to determine if your property is competitive.
According to Bayut, there are pros and cons to buying a holiday home in Dubai.
Pros:
- A good vacation rental property can cover the mortgage and generate additional revenue
- A vacation rental can help offset the costs of your future retirement home
- You can raise your prices due to high seasons and certain events
- Vacation rentals are growing more popular and are legal in Dubai
- Expo 2020 offers a wonderful opportunity for vacation home owners
Cons:
- Holiday home rentals can be costly to manage and seasonal upkeep must be factored in
- Vacation rentals are affected by economic downturns and can leave you financially stranded if you are reliant on booking revenue
- Rules and regulations can change
- There is a fair amount of competition in the market with an estimated 1,600 vacation rentals in the market
- It is not always easy to vet prospective tenants and there have been instances of less than stellar guests
If you’re a landlord looking to transform your property into a holiday home or a new property buyer looking to earn passive income, contact us today!