The effects of the rise of holiday homes on the hospitality market have been highlighted by Knight Frank Middle East in its latest hospitality report: Dubai’s Holiday Home Market.
The research indicates that although hotel operators were initially dismissive of the short-term rental market, over time this view has been abandoned, as new research indicates positive growth trends in the holiday home market.
Knight Frank associate partner hospitality advisor Ali Manzoor commented: “One of the core appeals of the short-term rental market is not only the product offering, but also the provision of an ‘authentic experience’ in secondary districts which are not commonly visited by traditional tourists.
“This clearly does not apply to Dubai; holiday homes in the emirate are largely located on Palm Jumeirah, Dubai Marina, Jumeirah Beach Residences, DIFC and Downtown Dubai – all areas that have high concentrations of hotel supply, which may prove to be problematic for the emirate’s hospitality sector in the long-run.”
Key points highlighted in the new research included a 100% rise in the number of holiday homes in Dubai in H1 2016, 29% average premium in holiday homes’ ADR over hotel ADR in H1 2016 and a total of 4,200 Dubai-based holiday home rentals listed during the same period.