UAE holiday homeowners cash in on 2022 World Cup as rates soar

Ms Mandacaru’s holiday home is a two-bedroom apartment in Business Bay on a high floor with views of the Burj Khalifa and access to facilities such as a swimming pool, sauna and gym.

She said the property is close to the Dubai Water Canal, where guests can take a walk, and is also close to shops and restaurants.

“I bought this property last January for AED 2.4 million, with a mortgage. Using it as a holiday home was probably one of the best decisions I made as it gave I have higher returns and better flexibility,” she added.

Ms Mandacaru said accommodation bookings for the World Cup were made weeks in advance.

Airbnb and Booking.com are the most popular platforms used by her vacation home management company. These platforms charge a commission of 15% to 20%, she added.

Adam Nowak, managing director of holiday home company Ultimate Stay Vacation Homes Rental, said house prices in the UAE were up 25% to 50% over the previous year due to the FIFA World Cup.

“Prices tripled in November and December compared to the low season,” he said.

“Prices for holiday homes are very seasonal. They are lowest during summer and Ramadan, highest between October and March, highest during public holidays and highest during special events like New Year’s Eve.”

Saeed Al Zubaidi, chief executive of Like Home by Dar Al Zain Vacation Homes, said demand for holiday homes in the UAE is usually high during winter and holidays, but this year, thanks to the FIFA World Cup, that level has almost doubled.

“Right now, there’s a shortage of vacation homes and more demand,” he said.

Frank Porter, another UAE-based short-term property management company, said prices for holiday homes in stock rose 40% in November and 85% to 100% in December, compared with normal winter prices. Skigin, the company’s CEO and founder.

“Currently, we’re seeing a lot of interest in City Walk and downtown, as well as Dubai Marina and Jumeirah Beach residences,” Ms Skigin said.

“As the date gets closer, this will expand to other areas. Properties are being booked, but the biggest wave will happen in the weeks leading up to the World Cup.”

about Mr Al Zubaidi said 5% of Dar Al Zain Vacation Homes clients wanted to find properties near the airport, but there was a high demand for furnished apartments close to tourist areas, metro and shopping malls.

On average, holiday homes for eight to 10 people cost between Dh2,000 and Dh5,000 per night, he said.

Average prices vary by region. In Jumeirah Village Circle, for example, a studio apartment is priced at Dh7,000 per night, while a one-bedroom apartment is priced between Dh10,000 and Dh13,000 per night given current demand, Mr al Zubaidi added.

Ultimate Stay’s Mr Nowak said prices would vary widely depending on the size of the unit, location, views, sleeping capacity of guests, standard, time between booking and check-in.

“It’s hard to get any decent-sized apartment in a good location for less than Dh10,000 a week,” Mr Nowak said.

“Obviously, larger units in the most prime locations with stunning views can command higher prices, Dh50,000 or more should not be surprising.”

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Dubai 2022 FIFA World Cup Fan Zone – in pictures

According to Ms Skigin of Frank Porter, the average stay in a holiday home during the World Cup is about a week.

The bigger the property, the longer the stay, Mr Nowak said. This has to do with the difficult logistics and planning involved when traveling in large groups.

While most tourists only wish to be there for part of the game, there is also a small group of die-hard fans who wish to remain in the UAE for the entire duration of the game. But, Mr Novak added, that would be very expensive and it would not be easy to buy tickets for the games, especially for fans from overseas such as Europe.

“We have seen a huge demand from foreign markets, with countries such as Europe, the US and even China seeing a 30% increase in demand,” said Mr. Al Zubaidi of Dar Al Zain Vacation Homes.

“We’ve also seen a dramatic increase in the number of people in the GCC.”

Ultimate Stay estimates that tourists mainly come from the UAE, Saudi Arabia, Russia, India, Pakistan, the UK and France.

Mr Novak said this was a common combination in Dubai, but the number of Russian tourists had increased significantly.

“It’s a balanced mix of family and friends who want to experience memorable moments together,” he added.

Industry experts say that while seasoned property owners are looking forward to the World Cup, new property owners are also starting to sign up to open their properties for short-term rentals during the season because of the World Cup’s potential to generate more revenue.

Landlords gain significant financial benefits as their income increases by an average of 30%, and in some cases as much as 80% to 90%.

They also understand that they have greater control over the property, can sell vacant properties at any time upon transfer, and that the units are better maintained, Mr Novak said.

Owners in Dubai must apply for a holiday home license from the Ministry of Economy and Tourism, register with the community, obtain special insurance and equip the units to hotel standards, he said.

Mr Nowak added that the regulator is also encouraging homeowners to implement smart home solutions such as smart locks, smart noise detection systems, and sustainable practices.

Property owners in Abu Dhabi can apply for a holiday home permit from the Ministry of Culture and Tourism.

The department signed a deal with Airbnb in February to boost the capital’s holiday home industry.

Under the agreement, Abu Dhabi’s tourism sector and Airbnb will collaborate to develop and grow the industry for tourists looking for alternatives to traditional hotels.

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