The Samana Group, located in Dubai, has established a new division, Samana Holidays. The new division will allow owners of property with Samana's real estate unit, Samana Developers, to rent out their properties for short-term rentals. This will therefore help to enhance investor returns.
Samana Holidays will focus on 500 units within its initial phase. These units will be converted into serviced apartments that will make ideal holiday homes. According to a statement from the firm, these flats will concentrate on short-term rentals to accommodate tourists, visitors, and holidaymakers. But at present, they also provide an ideal stopover for fans of the currently ongoing 2022 FIFA World Cup.
This comes at a time when Dubai’s rental growth is achieving record highs. So, it is an ideal opportunity for Samana Group to leverage.
SAMANA HOLIDAYS OFFER STRONG BENEFITS
During the next seven months (by Q2 2023), income from these units is anticipated to amount to AED38 million ($10.3 million). So, this new venture represents an efficient way to optimise the property's return on investment. Therefore, providing an attractive benefit to Samana Developers' end-users and buyers.
The resort-like layouts and characteristics of Samana Developers’ projects are also highly attractive. This design makes the properties ideal for renting out to tourists. So, switching the units from long-term to short-term rentals is also an appealing option for both the property owners and visitors.
AGREEMENT WITH AIRBNB AND ITS BENEFITS
As part of this expansion strategy, Samana Holidays also has a long-term agreement in place with Airbnb. With this agreement in place, the availability of short-term rentals will increase the property owners’ rental revenue from 8% to 15%. So, as soon as their accommodation is booked on Airbnb, rental returns will increase by 7%.
To benefit from this opportunity, homeowners sign a single agreement with Samana Holidays. Their property will be converted into fully furnished units and will appear live on Airbnb in the following 5 days, providing tourists with more options. According to Samana Developers CEO, Imran Farooq, this documental procedure will be straightforward and completed in only 10 minutes.
Samana Holidays’ handles the remainder of the process. This includes furnishing the property, locating customers, settling rental agreements, getting tenants on board, and apartment upkeep.
ATTRACTIVE FACILITIES AND THE OVERALL STRONG APPEAL
Ultimately, the serviced apartments will strongly appeal to tourists by offering considerably lower nightly rates when compared to hotel rates in Dubai. The projects equally provide resort-like living that is ideal for Airbnb. This experience contains not only leisure decks, swimming pools for adults and children, private pools, and distinctive water features. But also included, are indoor and outdoor gyms, steam room and sauna facilities, an open cinema, a juice bar, green areas, and 24-hour security.
