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UAE short-term rentals becoming attractive for tourists & property owners

Article-UAE short-term rentals becoming attractive for tourists & property owners

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Tourist perceptions of UAE cities as being safe and secure give rise to a strengthening demand for short-term rentals.

Over the past two years, the UAE has experienced an increase in the number of short-term rentals and staycations amongst tourists.

It is important to highlight here that short-term rentals are where guests stay in home-like environments or serviced apartments for less than 30 days. So, short-term rentals are a more self-catered and hands on type of accommodation.

In fact, the short-term rental model offers significant benefits not just for tourists, but also for the property owners themselves. We shall explore these benefits below.


Many tourists, primarily large groups of people or families, are opting for short-term rentals in serviced apartments. Raquel Lopez, the VP of Sales and Marketing GCC at Barceló Hotel Group, conveys this in a recent Khaleej Times article. Mrs Lopez states how this demand is largely due to the desires of groups of people to experience greater levels of comfort and to have the freedom to explore.

Equally, Mrs Lopez highlights how the increased flexibility of short-term rentals benefits larger groups of people. This is because not only do short-term rentals more easily accommodate for everyone’s needs. But they can also be far more cost efficient in terms of allowing guests to shop for and cook their own food.

Short-term rentals also offer a more personalized experience. So, the specific needs and demands of tourists can be more easily met. This is given the flexible and lean structure that short-term rental property owners operate under.

Preferences for short term rentals are equally driven by the favourable perceptions of cities like Dubai, Abu Dhabi, and Sharjah. These major UAE cities are perceived to be safe and secure tourist destinations.

This is unlike unstable countries where tourists choose to stay in well-known and reputable hotels for safety and security reasons. In fact, tourists in the UAE and in the neighbouring countries of Oman and Saudi Arabia are happy to opt for short-term rentals and serviced apartments as an alternative form of accommodation.


Short terms rentals have become a highly profitable industry. This is particularly the case in Dubai’s tourist hotspots such as Palm Jumeriah.

Tourists are willing to spend more money for a more private and peaceful experience. An experience that even four or five start hotels and resorts lack the ability to offer due to how busy they are.

Yet, operating within the short-term rentals space is by no degree easy for property owners. Behnam Eghtedari, a business partner at Unique Property Company, highlights this. Mr Eghtedari states how the high-end hotels and resorts will still be a fierce source of competition for property owners wishing to utilise short-term rentals. This is because the vast ranges of amenities and luxuries found in these high-end resorts and hotels cannot be matched by short-term rental property owners.

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