Highlights from Bayut’s Twelfth Webinar: The State of Real Estate
We wrap up 2020 with the highlights of this year’s last episode in our webinar series, The State of Real Estate! In the twelfth episode, we discuss the growing holiday home market in the UAE with industry leaders who specialise in this particular short-term rental niche.
The highlights from Bayut’s twelfth webinar focus on how the holiday homes segment has evolved over the years and the different elements that make it one of the most thriving aspects of the UAE real estate market.
WHO WAS PART OF THE BAYUT WEBINAR?
The twelfth webinar episode was moderated by our very own Fibha Ahmed, the Sales Director for Bayut and dubizzle.
She was joined by Khadija Meziane El Otmani, Managing Partner at Driven Holiday Homes and Mohamad Shams, Managing Director at fäm Living & fäm property Management – two talented market leaders specialised in managing holiday home companies.
Sajad Ali Sofi, Area Manager at Bayut, also joined the discussion in the second half of the session to share his professional insights on the holiday home segment of the real estate industry.
Watch the full webinar episode or check out the highlights below to discover how holiday homes have become one of the most successful segments of real estate in the UAE:
PANEL DISCUSSION ON THE GROWING HOLIDAY HOME MARKET IN THE UAE
The panel discussion kicked off with our guests relating their motivation behind choosing the holiday home and short-term rental industry, which coincidentally came from personal experience.
Khadija Meziane El Otmani, talking about her motivation said, “I wanted something more personal, more homey. It’s not a new business and I thought I could do it better…so it was out of a personal experience, I was looking for myself.”
Mohamad Shams mentioned continuous travel in and out of Dubai for work resulted in a personal experience that later morphed into a good business prospect.
“When I was away, I was letting my house on a short-let. This is how I explored this segment and at some point I thought, why don’t I commercialise it in a more upscale way…and it was an eye-opener for me.”
Our panellists also shared the details of their initial transition into the segment and how it differs from the conventional hospitality industry.
Even though the holiday homes market experienced an unprecedented boom during the ongoing pandemic, according to expert insights, it also came with the perennial need to adapt, re-focus, adjust and re-adapt to new policies, regulations and work dynamics.
When asked about how the holiday home market in Dubai has changed over the years, our in-house expert Sajad Ali Sofi revealed:
“There has been a remarkable increase (in demand) for holiday home operators. One of the major reasons (for that) is people want home-away-from-home like services and these holiday homes have everything.”
There was also a general consensus among our panellists on the fact that the innate flexibility of holiday home rentals also contributes to their overall popularity in the UAE.
THE EVOLUTION OF THE HOLIDAY HOMES MARKET IN THE UAE
The experts present at Bayut’s twelfth webinar opined that the preference for holiday homes over a hotel room or serviced apartment comes from the homely comfort holiday rentals offer.
It was also mentioned that constant value addition in terms of amenities, flexibility and services has been a game-changer for holiday home companies like Driven Holiday Homes and fäm Living & fäm property Management. Especially when competing with renowned hoteliers and brands in the hospitality industry.
Our panellists also shed light on how, with the pandemic impeding the growth trajectory of the real estate sector, the holiday homes segment experienced an unprecedented boom.
Explaining the astounding 96% occupancy during the Covid-19 lockdown, Khadija Meziane El Otmani pointed out that their consumer dynamics altered.
Instead of just tourists, they witnessed a diverse group of people including businessmen, and even those who’ve lost their jobs, looking for holiday homes in Dubai.
The fact was later reiterated by Sajad Ali Sofi, with intel from the partners at Bayut who revealed that:
“The market was previously based on international tourism, now what we have observed in the past few months is that the market is based on local inventory or local demand.”
Even with a shift in the consumer demand, there were considerable challenges faced by the industry amid lockdown and the Covid-19 regulations.
“We looked at the situation and we knew this would not end – a new normal is about to emerge…so we pivoted our strategy. We put a mechanism in place which makes our customer experience easier.”
From free cancellation policies to flexible payment plans, holiday home companies have gone all out to ensure maximum convenience for their customers in uncertain times.
THE FUTURE OF HOLIDAY HOMES IN DUBAI
Both Khadija Meziane El Otmani and Mohamad Shams were of the view that the demand for holiday homes will continue to surge.
With EXPO 2020 rescheduled for next year and 25 million visitors expected to arrive in the country, there is excellent scope for holiday home operators to expand and grow.
Our panellists believe that this is the time for holiday home operators to gear up and work on the prospects of growth and expansion into other emirates, specifically Abu Dhabi and Ras Al Khaimah.
ADVICE FOR REAL ESTATE COMPANIES
Looking at the burgeoning holiday home market in the UAE, our panellists opined that real estate companies in Dubai and other emirates should consider tapping into this segment for business longevity.
Their advice to real estate companies considering an expansion into the holiday home business is to “go for it” because:
- The segment is a big player and is expected to be the game changer in the coming future.
- It’s different from conventional real estate and presents businesses with a great opportunity to tap into the hospitality sector.
- It may be expensive, but once it’s up and running, this real estate segment is totally worth it in terms of growth and returns.
ADVICE FOR INVESTORS
According to our panellists, investors looking to add real estate to their portfolio should put their money into holiday homes because they:
- Earn better yield.
- Offer investment protection with a dedicated team working on property upkeep and maintenance.
- Come with flexible exit plans.
THE ROLE OF BAYUT AND DUBIZZLE TO SUPPORT HOLIDAY HOME OPERATORS IN THE UAE
Towards the end of the webinar, Sajad highlighted how Bayut and dubizzle are helping create a thriving holiday homes market in the UAE.
“As a portal, we give them the opportunity to advertise their properties on a weekly, monthly, yearly and bi-annually basis…we offer them flexibility to quote their average rates for the property, without sharing any of their revenue with us.”
Working with Bayut and dubizzle, there has been an increase in the revenue for holiday home operators, without deflecting from the inherent flexibility of the market.
Additionally, virtual property search on Bayut comes with innovative PropTech solutions, which makes the process of finding the perfect property easier – be it a holiday home or normal rental.
As a parting note at the end of the webinar, panellists Khadija Meziane El Otmani and Mohamad Shams stated that the holiday homes market is here to stay and a great option to consider whether you’re looking for accommodation or investment.
That rounds up the highlights of our twelfth episode of Bayut’s webinar – The State of Real Estate! We hope the valuable insights into the holiday homes industry shared by the experts prove useful for you.
Catch up with the highlights of Bayut’s Eleventh Webinar for some inspiring real estate success stories in the UAE.
