Luxury Rentals Still Demand $10,000 Per Night for Last-Minute Bookings.
Dubai: Travelers booking holiday homes in Dubai for the busiest week of the year are pleasantly surprised. Many are finding that short-term rentals in popular locations to celebrate the New Year haven’t increased much compared to last year.
Even luxury stays on the Palm Jumeirah, priced at around Dh10,000 per night, are similar to rates from the same time last year. In some cases, short-term rental rates are even “slightly lower compared to the last two years,” according to Anna Skigin, founder of Frank Porter, a holiday home consultancy.
“There are definitely more options in Dubai’s holiday home market for all types of guests – from premium to budget-friendly. Right now, there’s a lot of supply across all categories,” she said.
Key locations like Palm Jumeirah, Dubai Marina, JBR, Bluewaters Island, Downtown Dubai, Business Bay, and DIFC remain the most sought-after spots during the festive season.
Increased Supply Stabilizes Rates:
The short-term rental market’s stability contrasts sharply with Dubai’s long-term rental sector, which continues to see double-digit increases in annual rents. While growth has slowed in some upscale areas since July, Dubai remains the UAE’s leader in holiday home demand.
Vinayak Mahtani, CEO of bnbme, which offers holiday home rentals in Dubai and Goa, noted, “Other regions in the UAE don’t attract the same level of demand as individual areas in Dubai.”
Anna Skigin attributed the stable prices to the increased supply of holiday homes. However, some areas, like Dubai Hills, cater more to high-end private villa stays and are not popular among typical short-term tourists.
“Dubai Hills attracts a different type of guest. It’s not the leisure or business traveler who usually visits during this period,” Mahtani explained.
Is Last-Minute Booking Still Possible?
Mahtani anticipates that some visitors will make last-minute bookings, which could result in surge pricing. “We expect a few apartments to exceed the $10,000 per night mark on December 31,” he said.
“Our highest average daily rate last year came from a penthouse booked on New Year’s Eve. That one booking alone covered the unbooked nights,” he added.
Booking earlier typically secures better rates for premium properties, but newly listed luxury homes still command high prices. Meanwhile, properties with outdated designs or poor reviews struggle to attract renters.
Continuous Growth Since 2021
Dubai’s short-term rental market has seen steady growth since late 2021 when the city reopened after Covid-19 restrictions. Each December since has broken records, with last New Year’s Eve setting new benchmarks.
“There are always wealthy visitors who want to celebrate New Year in Dubai but leave booking to the last minute,” said a leasing agent. “This is when property owners and management companies make serious money. December 31, 2024, will likely be no different.”
What Do Rentals Cost in Key Locations?
- Dubai Marina Penthouse: Dh3,295 to Dh10,000
- 1BR in Palm Jumeirah: Dh650 to Dh2,635
- 2BR in Palm Jumeirah: Dh824 to Dh3,270
- 3BR in Business Bay: Dh1,209 to Dh4,060
- 3BR in City Walk: Dh2,167 to Dh7,844
- 1BR in Downtown Dubai: Dh744 to Dh2,910
- 2BR in Downtown Dubai: Dh1,509 to Dh5,479
- 3BR in Downtown Dubai: Dh1,685 to Dh6,418
(Source: Frank Porter)
