Short-term rental - these two words have become a real balm for the owners of small apartments in the UAE. Imagine: you earn on your property as much as you want, while you yourself can come and live in it whenever you want.
So, how to choose the right apartment for AirBnb?
To begin with, today the short-term rental service is legally permitted only in the two emirates of Dubai and Ras Al Khaimah. Therefore, we will take a closer look at attractive real estate here.
Both emirates have a stable and year-round tourist flow, which gives a load of hotels and apartments. The smaller the guest property of a similar category next door, the more profitable you can rent your apartment. Already today, those owners who rent out for a short period, earn 25-40% more than those who concluded an annual contract.
First and foremost, location
The most beloved tourists of all - family - will always give preference to apartments on the first coastline, near the sea. In Dubai, there are two popular coastal areas - the elite island of The Palm Jumeirah and the ever-bubbling Jumeirah Beach Residence.
In Ras Al Khaimah, the Al Hamra area along with the alluvial island of Al Marjan is considered the best location - they guarantee amenities at the level of Dubai, only three times cheaper, the cleanest sea and air and a quiet comfortable rest away from the city bustle.
The tourist flow in Ras Al Khaimah is constantly growing: if in 2017 it reached 1 million tourists, then in 2025 it will amount to 2.9 million tourists: there will be a shortage of middle-class hotels, which means decent apartments by the sea on AirBnB will be loaded all year round.
Fees and Payback
AirBnB service, it must be said, offered not quite equal conditions for property owners in Dubai and Ras Al Khaimah. In short, in Ras Al Khaimah it is more profitable: for example, filing an application for registration in the system will cost 1500 dirhams in Dubai, and 1000 Rs in Ras al Khaimah.
Despite the general drop in prices on the real estate market, beachfront properties in Dubai with similar amenities (such as Wi-Fi, an equipped kitchen, a gym and a swimming pool) are still 3 times higher than the price of an apartment in Ras Al Khaimah: for example, a studio on The Palm Jumeirah Island costs an average of 1.1 million dirhams, on Al Marjan Island - 350 thousand dirhams.
It is curious that in high season rental prices for guest real estate in Dubai and Ras Al Khaimah can be compared. If we compare the prices for New Year’s dates, then Ras Al Khaimah even went ahead of the price: 2200 - 2500 dirhams for a one-bedroom apartment per day against 1500 - 1700 dirhams - for an apartment of the same type in an elite area of Dubai. Based on this, it is easy to calculate the payback period of real estate.
“They’re best suited for short-term rental of studios and one-bedroom apartments - the latter can easily accommodate a family of four, with two young children, who will be much more comfortable in an apartment with all amenities than in a hotel room,” says Victoria Lancaster, Managing partner of an experienced property developer Select Property.
In the center of events
To go to the UAE for the New Year to see the grandiose fireworks is the cherished dream of millions of our compatriots.
In Dubai, fireworks are organized in the city center, from the Burj Khalifa skyscraper, where you can choose from two options - come in the afternoon and stand for long hours in a crowd of people or book a table at a nearby hotel with a view of the skyscraper, which will cost at least US $ 500 per person .
In Ras Al Khaimah, tourists can enjoy a phenomenal beauty and scale of fireworks, already included in the Guinness Book of Records - in absolute comfort, family atmosphere, with Olivier salad - from the balcony of their own (or separate) apartment.
If you want to buy property in the UAE profitably for short-term rental, contact an experienced developer Select Property for a free consultation in Russian:
Tel .: +971 7 227 4446
Email: [email protected]
