Dubai's holiday homes rental market is up for a busy December – rates zoom to record highs

This situation is an ideal opportunity for investors to expand their Dubai portfolios and profit from short-term rentals.

For those who plan to book a holiday home in Dubai during the second half of December, here’s a piece of advice – do it as fast as you can. That’s because short-stay or holiday home rentals are recording almost overnight gains and could be touching record highs in the run-up to New Year’s Eve.

'Everyone in the world seem to have decided they will spend New Year in Dubai,' said an owner of multiple luxury properties available for short-term rentals. 'Even with the steep rates being asked, property owners and management companies are getting instant bookings.'

The build-up in demand and rates is already being felt. Apartments that costed USD 40 per night in summer are now rented out at USD 217.

On the the Palm, short-stay rentals could soar to USD 680 and well over. Some professionals in the industry believe, rates could reach record levels for properties with a sea-view or located close to the New Year’s Eve attractions spots.

This situation is an ideal opportunity for investors to expand their Dubai portfolios and capitalize on the returns provided by short-term rentals that is now very popular among holidaymakers and tourists.

Airline industry sources also confirm that December will be an exceptionally busy month this year, as Expo 2020 visitors are adding another layer to regular tourist arrivals. But the current surge in demand is much more than that.

Surely, demand has primarily been fueled by tourists and visitors to Expo 2020 but there are a lot of expats as well who want a chance to immerse themselves in the city before making a longer commitment.

Communities located a short distance away from the Expo site, such as Jumeirah Golf Estates, Mudon and Town Square, are quite highly sought after at the moment. However, there are also the 'evergreen' communities of Dubai, the ones that are always in demand no matter what the occasion. They are Palm Jumeirah, Dubai Marina and Jumeirah Beach Residence. Demand in these areas is particularly high over the winter season, and especially close to New Year’s.

All of this sounds far removed from the uncertainty that filled the holiday-home market nearly over the whole last year, except for a pickup in December. The pandemic did make many property owners think whether they should exit the short-stay rental space and opt for the surety of long-term lets. Those doubts were cleared by the start of Expo 2020 on October 1.

The occupancy rates were very high over May and June, at above 87 percent. July and August had lower rates, at 65-75 percent, due to many closed borders. But the situation started to change in a positive way from September/October.

Any holiday home property with an uninterrupted view of the sea or to New Year’s Eve fireworks is usually considered a premium over those that come with just a typical sight. Hpwever, that does not seem to be the case this year. Even the plainest units pick up some crazy booking rates for December.

It seems, everyone is planning to be in Dubai this December.