UAE, Saudi real estate: Last-minute Eid Al Adha bookings fuel massive spike in short-term rental demand
The demand surge, coupled with an increase in room tariffs by hotels, is leading to a jump in short-term rental bookings in the UAE and Saudi during the holiday season.
Firms providing short-term rentals in the UAE and Saudi Arabia are currently in an overdrive mode, with a surge in last-minute bookings for short stays during the Eid Al Adha holiday season.
Besides an uptick in staycations from domestic holidaymakers, this year’s holiday season is seeing a significant spike in tourists from countries like the UK, India, Pakistan, Qatar and other GCC countries, industry insiders said. The demand surge, coupled with an increase in room tariffs by hotels, is also leading to a jump in short-term rentals this season, going upwards from AED190 per night in some of the high-demand locations in Dubai such as Jumeirah Lakes Towers (JLT).
Significantly, the demand surge comes even as Dubai is estimated to have seen a 35 percent annual growth in the number of property listings for shortterm rentals this year. In markets like Abu Dhabi and Riyadh, industry insiders said, there is a shortage in supply, but efforts from government tourism boards are continuing to drive demand to the region.
Senior executives at leading short-term rental services firms such as Silkhaus and Colife said Dubai is also seeing a shift in demand for shortterm rental in the current season from the traditionally sought-after areas like Dubai Marina and Palm Jumeirah to Downtown, Business Bay and secondary locations where apartments are more affordable.
They attributed the reason for the shift to the changing preferences in tourist activities and budget considerations.
“We foresee a robust holiday season [during Eid Al Adha this year] with a significant boost in short-term rental bookings,” Peter May, VP — Operations at Silkhaus, told Arabian Business. “In the UAE, particularly Dubai, we anticipate continued strong demand, especially given its top ranking in Google’s search trends for summer holidays in 2024,” he said.
May said Saudi Arabia is also seeing extremely strong demand for shortterm rentals for this season, with properties in Riyadh seeing full occupancy over the weekends.
“We are in the process of onboarding landlords as well as institutional property investors [to meet the surging demand in Riyadh], he said.
Diversifying partnerships and booking platforms
Industry insiders said companies are busy continuously onboarding new partners, while holding on to their existing long-standing partnerships with accommodation booking sites Booking.com and Airbnb and online travel agencies (OTAs), besides enhancing their own booking platforms to boost tourist inflows to their properties.
They said travellers are also seen increasingly utilising indirect booking platforms like PropertyFinder and Bayut, which cater to longer lead times and extended stays, essential during summer.
“To attract more customers this season, distribution remains the key for us at Silkhaus,” the Silkhaus senior executive said.
“We maintain long-standing partnerships with renowned online travel agencies and booking sites, while making extra efforts to onboard new partners on a continuous basis,” he said, adding that “additionally, we leverage our B2B network and sales team to drive occupancy”.
May said this global reach has allowed the company to attract guests from 120 countries.
UAE and KSA markets show potential
Senior executives at other proptechs operating in the short-term rental segment said while Dubai is seeing the highest demand this season, other UAE cities such as Abu Dhabi are also seeing a spike in demand this year.
“The combination of beaches, theme parks and family-oriented destinations is making Abu Dhabi an attractive choice for Eid Al Adha holidays,” an executive said.
May said both the UAE and Saudi markets show promising potential this season and also going ahead, but the patterns differ.
“UAE of late is seeing steady, year-round demand, while Riyadh is seeing a growing weekend leisure market,” he said.
“Looking ahead, we anticipate KSA’s business travel segment to grow, and potentially take the larger share of our demand.
“This will remove seasonality in the KSA market, positioning it for year-round growth,” May said.
Short-term rental surge
Industry insiders said short-term rental costs in the UAE, especially in Dubai, are seeing a spike with the last-minute rush in bookings.
Properties in sought-after areas such as Jumeirah Lakes Towers are seeing the highest increase, with minimum rentals rising to AED190 per night.
The rising trend of room tariffs at traditional hotels has also contributed to the jump in short-term rentals, they said.
“Similar to prices across the tourism sector, short-term rental costs are also dynamic and fluctuate based on seasonal trends and demand,” an industry expert said.
Silkhaus’ May said their company leverages technology to automate these adjustments, ensuring prices that maximise returns for landlords, while meeting the demands of its guests.
“While prices naturally rise during peak seasons and adjust throughout the rest of the year, our short-term rentals remain an affordable option on average compared to more traditional accommodation alternatives, while still ensuring a high level of comfort and luxury,” he said.
Originally published at Arabian Business
