Dubai has registered a remarkable increase in Airbnb listings over the last three years, which have doubled in number as the growing global trend starts to take hold in the emirate.
At present, there are slightly fewer than 25,000 active Airbnb listings – up by more than 11,000 from 2021 – with annual average occupancy at 56 per cent, according to Dubai-based real estate consultancy Valustrat, which has tracked and analysed the data it sourced from the California-based company.
Valustrat said almost half the private properties are located in the city's prime tourist areas of Dubai Marina, Jumeirah Beach Residence, Downtown Dubai and Business Bay.
It is a lucrative business if you can get it right. An average profit margin of about Dh3,500 ($1,000) per unit each month is a typical target and most will aim to build a portfolio comprising tens of properties.
In 2022, Dubai was ranked as the most profitable location in the world for Airbnb landlords, according to a survey by UK-based landlord insurance company CIA Landlords.
The survey found that landlords who leased properties in Downtown could command an average of £930 ($1,150) per night.
In the summer, it's all about breaking even to make money in the winter
Redeet Negate,
SmartStay
There are Airbnb operators of all sizes in Dubai. From one of the largest, such as Frank Porter which manages more than 700 Airbnb properties in Dubai, to one of the newest in Redeet Negate, from the Netherlands, who started his holiday home business SmartStay in June and has a current portfolio of 24 listed on Airbnb.
Mr Negate, as is the case with many of his peers who use social media to reach new customers, has a target to reach 100 properties, which would give him a portfolio akin to leasing a medium-sized hotel.
Although relatively new, the holiday homes market is set to experience similar growth trends over the coming years, according to Haider Tuaima, director and head of real estate research at Valustrat.
“We already know it tripled in three to four years, and this is including the Covid period, which is amazing on its own. But we need to remember that we had Expo, [during] which there was a lot of demand for hotels during ’21 and ’22,” Mr Tuaima tells The National.
“Probably the momentum will be slower but the growth will continue in the coming years, especially now that we have the regulation there.”
New trends
Large-scale operators tend to favour subleasing properties – or rental arbitrage – as they give a higher profit but require more cash upfront. Revenue sharing, a second preferred method that involves managing the property for a commission, is also popular because it does not require as much starting capital.
Airbnb is the primary letting channel for most, although Booking.com and Expedia, to a lesser extent, are also used.
Regulations are in place for holiday home rentals in Dubai. Operators looking to build a portfolio must first register their company on the mainland with the Department of Economic Development to get a licence from the Department of Tourism and Commerce Marketing (DCTM).
Each subleased property has to have permission from the owner and a move-in permit is required from each building.
Oriol Plana, founder and chief executive of Mr Alfred, a platform for holiday home operators that manages costs and revenue, estimates that there are as many as 300 operators in Dubai.
His platform has more than 60 companies and manages about 1,000 units.
Despite the high rents, which are narrowing the margins for some, he says subleasing is “booming” in Dubai.
Three quarters of holiday homes are managed by companies, with the remainder managed by individuals, according to Mr Plana.
“Usually there's five months of high season, three months of shoulder season, as it's called, and four months of low season and then Ramadan,” says Mr Plana.
“You need to be very careful and very good at cashflow management because when all the profits of the high season [are realised], you need to keep them for the low season.”
Established Airbnb management company Frank Porter describes the growth of Dubai's short-term rental market as “incredible”.
“When we entered the market in Dubai [in 2017] there were close to 8,000 listings; we are now at 25,000 and growing,” says its founder and chief executive Anna Skigin.
“Last year, [Dubai's listings] growth alone was 40 per cent, year on year.”
She says there are new trends of people renting for a longer time and groups of friends wanting to rent larger units.
“We see the [growth] trend continuing for the next few years as Dubai continues to be on the map as a major tourist destination and attraction,” she says.
“We anticipate the market will stabilise in a few years, with less growth and more similar to other big cities like London and Paris.”
Social media is king
Social media has been a valuable way for Airbnb operators to market their business. Many will openly reveal their revenue and cost figures and tell their audience how they grew their businesses.
Mr Negate revealed earlier this month on social media that the revenue from his 14 apartments in February reached $165,000, with an occupancy rate of 93.7 per cent.
However, Ramadan falling in March has meant lower rates, as has been the case for many operators.
“I use pricing automation software that helps me with low occupancy rates to decrease the prices, but this was not enough because occupancy was still lower than what I was used to,” Mr Negate tells The National.
“I decreased my prices by 30 per cent more than the previous month.”
Managing revenue all year round is an important part of being successful.
“Obviously, in the winter I make money. That's where I need to also get some savings and some buffer because in the summer it's not that lucrative. In the summer, it's all about breaking even to make money in the winter.”
Mr Negate also operates a revenue-sharing model, whereby he manages people’s properties for a commission, which he says can vary between 20 per cent and 25 per cent.
“Although subleasing makes more money if you do it well, it's cash-intensive,” he says.
“You need quite some cash upfront to get an apartment and to operate it – deposit, rent, furnishing and commission for the agents.”
With a current portfolio of 24 properties, his target is 100, which he believes will bring him close to his monthly seven-figure target.
“I want to like have a revenue of $1 million a month for my business but I'm not in a rush. I want to do it the right way,” he says.
“I don’t want to just add units and lose out on quality and stop being a superhost.”
New to market
New to the Dubai Airbnb market in the coming weeks is Syed Lateef from Chicago who has a successful portfolio of 300 subleased apartments in the Mid-West.
With revenue of $11.5 million last year in the US, he has similar ambitions to hit seven figures in Dubai and has set up a new Instagram account (airbnb.in.dubai) for followers to track his journey.
Despite starting at a time when rents in the emirate are at peak levels, Mr Lateef says there is still room to make money.
“Rents are increasing but there's still margin in there. People are still profiting like $1,000 to $2,000 per month on doing this, which is a lot more than what I'm making in my market,” he tells The National.
“If you look at the unit mix, like 90 per cent of the 25,000 are one and two-bedroom type units and that, to me, shows there's a huge saturation of that bedroom type and maybe there's opportunity for a three and four-bedroom.”
While it may seem attractive, he says there is a lot of risk involved in Airbnb subleasing.
“An economic crisis where travel decreases significantly could happen but you’re still obligated to pay the rent and your bills.
“There’s a lot of risk associated with it, just like any business, but it’s easier than buying property.”
More on Palestine-Israeli relations
Film: In Syria
Dir: Philippe Van Leeuw
Starring: Hiam Abbass, Diamand Bo Abboud, Mohsen Abbas and Juliette Navis
Verdict: Four stars
10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Everybody%20Loves%20Touda
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Dubai Women's Tour teams
Agolico BMC
Andy Schleck Cycles-Immo Losch
Aromitalia Basso Bikes Vaiano
Cogeas Mettler Look
Doltcini-Van Eyck Sport
Hitec Products – Birk Sport
Kazakhstan National Team
Kuwait Cycling Team
Macogep Tornatech Girondins de Bordeaux
Minsk Cycling Club
Pannonia Regional Team (Fehérvár)
Team Auvergne-Rhône-Alpes
Team Ciclotel
UAE Women’s Team
Under 23 Kazakhstan Team
Wheel Divas Cycling Team
Killing of Qassem Suleimani
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
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Q&A with Dash Berlin
Welcome back. What was it like to return to RAK and to play for fans out here again?
It’s an amazing feeling to be back in the passionate UAE again. Seeing the fans having a great time that is what it’s all about.
You're currently touring the globe as part of your Legends of the Feels Tour. How important is it to you to include the Middle East in the schedule?
The tour is doing really well and is extensive and intensive at the same time travelling all over the globe. My Middle Eastern fans are very dear to me, it’s good to be back.
You mix tracks that people know and love, but you also have a visually impressive set too (graphics etc). Is that the secret recipe to Dash Berlin's live gigs?
People enjoying the combination of the music and visuals are the key factor in the success of the Legends Of The Feel tour 2018.
Have you had some time to explore Ras al Khaimah too? If so, what have you been up to?
Coming fresh out of Las Vegas where I continue my 7th annual year DJ residency at Marquee, I decided it was a perfect moment to catch some sun rays and enjoy the warm hospitality of Bab Al Bahr.
The Cairo Statement
1: Commit to countering all types of terrorism and extremism in all their manifestations
2: Denounce violence and the rhetoric of hatred
3: Adhere to the full compliance with the Riyadh accord of 2014 and the subsequent meeting and executive procedures approved in 2014 by the GCC
4: Comply with all recommendations of the Summit between the US and Muslim countries held in May 2017 in Saudi Arabia.
5: Refrain from interfering in the internal affairs of countries and of supporting rogue entities.
6: Carry out the responsibility of all the countries with the international community to counter all manifestations of extremism and terrorism that threaten international peace and security
How to donate
Text the following numbers:
2289 - Dh10
6025 - Dh 20
2252 - Dh 50
2208 - Dh 100
6020 - Dh 200
*numbers work for both Etisalat and du
Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
Yemen's Bahais and the charges they often face
The Baha'i faith was made known in Yemen in the 19th century, first introduced by an Iranian man named Ali Muhammad Al Shirazi, considered the Herald of the Baha'i faith in 1844.
The Baha'i faith has had a growing number of followers in recent years despite persecution in Yemen and Iran.
Today, some 2,000 Baha'is reside in Yemen, according to Insaf.
"The 24 defendants represented by the House of Justice, which has intelligence outfits from the uS and the UK working to carry out an espionage scheme in Yemen under the guise of religion.. aimed to impant and found the Bahai sect on Yemeni soil by bringing foreign Bahais from abroad and homing them in Yemen," the charge sheet said.
Baha'Ullah, the founder of the Bahai faith, was exiled by the Ottoman Empire in 1868 from Iran to what is now Israel. Now, the Bahai faith's highest governing body, known as the Universal House of Justice, is based in the Israeli city of Haifa, which the Bahais turn towards during prayer.
The Houthis cite this as collective "evidence" of Bahai "links" to Israel - which the Houthis consider their enemy.
More from Rashmee Roshan Lall
BUNDESLIGA FIXTURES
Friday Hertha Berlin v Union Berlin (11.30pm)
Saturday Freiburg v Borussia Monchengladbach, Eintracht Frankfurt v Borussia Dortmund, Cologne v Wolfsburg, Arminia Bielefeld v Mainz (6.30pm) Bayern Munich v RB Leipzig (9.30pm)
Sunday Werder Bremen v Stuttgart (6.30pm), Schalke v Bayer Leverkusen (9pm)
Monday Hoffenheim v Augsburg (11.30pm)
Planes grounded by coronavirus
British Airways: Cancels all direct flights to and from mainland China
Hong Kong-based Cathay Pacific: Cutting capacity to/from mainland China by 50 per cent from Jan. 30
Chicago-based United Airlines: Reducing flights to Beijing, Shanghai, and Hong Kong
Ai Seoul: Suspended all flights to China
Finnair: Suspending flights to Nanjing and Beijing Daxing until the end of March
Indonesia's Lion Air: Suspending all flights to China from February
South Korea's Asiana Airlines, Jeju Air and Jin Air: Suspend all flights
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
More from Neighbourhood Watch:
THE POPE'S ITINERARY
Sunday, February 3, 2019 - Rome to Abu Dhabi
1pm: departure by plane from Rome / Fiumicino to Abu Dhabi
10pm: arrival at Abu Dhabi Presidential Airport
Monday, February 4
12pm: welcome ceremony at the main entrance of the Presidential Palace
12.20pm: visit Abu Dhabi Crown Prince at Presidential Palace
5pm: private meeting with Muslim Council of Elders at Sheikh Zayed Grand Mosque
6.10pm: Inter-religious in the Founder's Memorial
Tuesday, February 5 - Abu Dhabi to Rome
9.15am: private visit to undisclosed cathedral
10.30am: public mass at Zayed Sports City – with a homily by Pope Francis
12.40pm: farewell at Abu Dhabi Presidential Airport
1pm: departure by plane to Rome
5pm: arrival at the Rome / Ciampino International Airport
MATCH RESULT
Al Jazira 3 Persepolis 2
Jazira: Mabkhout (52'), Romarinho (77'), Al Hammadi (90' 6)
Persepolis: Alipour (42'), Mensha (84')
The Buckingham Murders
Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu
Director: Hansal Mehta
Rating: 4 / 5
Three ways to boost your credit score
Marwan Lutfi says the core fundamentals that drive better payment behaviour and can improve your credit score are:
1. Make sure you make your payments on time;
2. Limit the number of products you borrow on: the more loans and credit cards you have, the more it will affect your credit score;
3. Don't max out all your debts: how much you maximise those credit facilities will have an impact. If you have five credit cards and utilise 90 per cent of that credit, it will negatively affect your score.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Super Bowl LIII schedule
What Super Bowl LIII
Who is playing New England Patriots v Los Angeles Rams
Where Mercedes-Benz Stadium in Atlanta, United States
When Sunday (start time is 3.30am on Monday UAE time)
Results
5pm: Maiden (PA) Dh80,000 (Turf) 1,600m; Winner: Rawat Al Reef, Adrie de Vries (jockey), Abdallah Al Hammadi (trainer)
5.30pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 1,400m; Winner: Noof KB, Richard Mullen, Ernst Oertel
6pm: Handicap (PA) Dh80,000 (T) 1,200m; Winner: AF Seven Skies, Bernardo Pinheiro, Qaiss Aboud
6.30pm: Handicap (PA) Dh80,000 (T) 2,200m; Winner: Jabalini, Szczepan Mazur, Ibrahim Al Hadhrami
7pm: UAE Arabian Derby – Prestige (PA) Dh150,000 (T) 2,200m; Winner: Dergham Athbah, Richard Mullen, Mohamed Daggash
7.30pm: Emirates Championship – Group 1 (PA) Dh1,000,000 (T) 2,200m; Winner: Somoud, Richard Mullen, Jean de Roualle
8pm: Abu Dhabi Championship – Group 3 (TB) Dh380,000 (T) 2,200m; Winner: Irish Freedom, Antonio Fresu, Satish Seemar
Company%20profile
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Ballon d’Or shortlists
Men
Sadio Mane (Senegal/Liverpool), Sergio Aguero (Aregentina/Manchester City), Frenkie de Jong (Netherlans/Barcelona), Hugo Lloris (France/Tottenham), Dusan Tadic (Serbia/Ajax), Kylian Mbappe (France/PSG), Trent Alexander-Arnold (England/Liverpool), Donny van de Beek (Netherlands/Ajax), Pierre-Emerick Aubameyang (Gabon/Arsenal), Marc-Andre ter Stegen (Germany/Barcelona), Cristiano Ronaldo (Portugal/Juventus), Alisson (Brazil/Liverpool), Matthijs de Ligt (Netherlands/Juventus), Karim Benzema (France/Real Madrid), Georginio Wijnaldum (Netherlands/Liverpool), Virgil van Dijk (Netherlands/Liverpool), Bernardo Silva (Portugal/Manchester City), Son Heung-min (South Korea/Tottenham), Robert Lewandowski (Poland/Bayern Munich), Roberto Firmino (Brazil/Liverpool), Lionel Messi (Argentina/Barcelona), Riyad Mahrez (Algeria/Manchester City), Kevin De Bruyne (Belgium/Manchester City), Kalidou Koulibaly (Senegal/Napoli), Antoine Griezmann (France/Barcelona), Mohamed Salah (Egypt/Liverpool), Eden Hazard (BEL/Real Madrid), Marquinhos (Brazil/Paris-SG), Raheem Sterling (Eengland/Manchester City), Joao Félix(Portugal/Atletico Madrid)
Women
Sam Kerr (Austria/Chelsea), Ellen White (England/Manchester City), Nilla Fischer (Sweden/Linkopings), Amandine Henry (France/Lyon), Lucy Bronze(England/Lyon), Alex Morgan (USA/Orlando Pride), Vivianne Miedema (Netherlands/Arsenal), Dzsenifer Marozsan (Germany/Lyon), Pernille Harder (Denmark/Wolfsburg), Sarah Bouhaddi (France/Lyon), Megan Rapinoe (USA/Reign FC), Lieke Martens (Netherlands/Barcelona), Sari van Veenendal (Netherlands/Atletico Madrid), Wendie Renard (France/Lyon), Rose Lavelle(USA/Washington Spirit), Marta (Brazil/Orlando Pride), Ada Hegerberg (Norway/Lyon), Kosovare Asllani (Sweden/CD Tacon), Sofia Jakobsson (Sweden/CD Tacon), Tobin Heath (USA/Portland Thorns)
'Champions'
Director: Manuel Calvo
Stars: Yassir Al Saggaf and Fatima Al Banawi
Rating: 2/5
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
