The perks of investing in holiday homes in Dubai
- About Owning a Holiday Home in Dubai
- Benefits of Holiday Home Investment in Dubai
- How to Choose the Right Holiday Home
- FAQs
If you’re considering investing in Dubai real estate, you may have come across holiday homes as an option. A popular tourist spot amongst tourists worldwide with more than 17.15M million visitors in 2023, the growing demand for homestays makes it a lucrative investment opportunity.
Let’s talk about what owning a holiday home in Dubai entails and the benefits of investing in one.
Owning a holiday home in Dubai
Buying a holiday home in Dubai means you’re investing in a property purely for commercial success, i.e. you already have a primary home. Even if you don’t, these properties can help you offset the costs of your future home and cover mortgages.
In Dubai, holiday homes are regulated by the Dubai’s Department of Tourism & Commerce Marketing (DTCM). You will need a Holiday Home Permit valid for a year to operate legally and market it on portals like Bayut. But once you’ve kicked things off and hired a good property manager, things move smoothly – especially during tourist high seasons when the city sees a lot of footfall.
Holiday homes in Dubai have mandatory QR codes at the door, through which visitors send their information to the DET. This is one of many initiatives to encourage investments in holiday homes.
If you’re still curious, let’s discuss the key benefits of investing in a holiday home in Dubai.
Perks of investing in a holiday home in Dubai
Tax-free country
The biggest advantage of investing in a holiday home in Dubai is zero tax costs. There are no property, income, or income gain taxes, which can be a huge boon in the long run.
Ability to carve a niche for yourself
Think about the people who want to stay at a holiday home instead of a hotel – they seek a unique stay with a personality of its own. This is where you come in.
You can furnish your holiday home with the best amenities possible. Smart home automation, comfortable furniture to sit on, beautiful paintings, vibrant wallpapers – you can go all out in your aesthetic of choice! A perk of adding these embellishments is that you can get an excellent resale value for your property when it’s time to sell.
High rental yields and returns
Holiday homes are preferred mainly by families with children, who want more space and utilities, or larger groups. Renting out a holiday home guarantees a higher return on investment (ROI), owing to its high demand amongst these audiences.
You are guaranteed profits during peak tourist seasons, as Dubai has a high demand for holiday homes. In addition, since there is no Ejari contract registration (as is the case with rentals), you have complete control over the prices of the property. You can always amp up the prices based on the market’s demand at the right time.
Your getaways are sorted!
You can also stay at your holiday home in Dubai. This means you’re avoiding the hassle of searching for accommodations during your Dubai. It could also be a potential retirement home option.
Another advantage of investing in holiday homes is reducing the maintenance costs that come with long-term tenants. You don’t have to worry about costs such as painting, plastering and other maintenance needed after a year’s stay.
How to choose the right holiday home in Dubai?
Location is the most important factor when buying a holiday home. You want to buy a holiday in a central location, close to all the popular tourist attractions and public transportation facilities. Palm Jumeirah, Dubai Marina and Downtown Dubai attract many tourists due to their recreational appeal, so look for places closer to these attractions. You can refer to reports such as Bayut’s Dubai rental market H1 report to see which areas in the city attract the most attention, then decide accordingly.
Make sure you market your property on Bayut and other portals, highlighting all the unique amenities your property has. Keeping an eye out for events and public holidays can be helpful in your marketing strategy. You can also work with a suitable holiday home property advisor to guide your property decisions.
Frequently Asked Questions
How can I apply for a holiday home licence in Dubai?
You require a holiday home licence to run a holiday home in Dubai. This is issued by the Department of Tourism and Commerce Marketing (DTCM) through their DTCM portal. The basic fee for registering a permit is AED 1,520. Other charges apply depending on the number of rooms in the home and multiple factors. Visit the official DTCM website for more details.
Can tenants in Dubai rent out their units as holiday homes?
Yes, you can rent your leased property in Dubai as a holiday home if you have an NOC from the landlord and can cover the licence and registration costs (AED 1,520).
How much can you make from a holiday home in Dubai?
This depends on the rent in the area and your property. Monthly rent can vary from approximately AED 2,500 for a studio in International City to AED 300k for a four-bedroom villa in Jumeirah.*
The asking rent can vary based on the events and tourist seasons.
Can I advertise holiday homes on Bayut?
You can advertise your holiday rentals on Bayut, including their daily or monthly rent costs and amenities.
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