Airbnb, a gigantic short-stay housing network, owns roughly six million rooms, apartments and residential units in more than 81,000 cities across the world. Recently, a UK-based landlord insurance company conducted a survey, which revealed that Dubai is the most profitable and expensive location in the world for Airbnb landlords.
Dubai has topped the list of the most profitable location, followed by Hilo in Hawaii and Hanoi in Vietnam. The further breakdown depicts that Downtown Dubai and particularly, the developments around Burj Khalifa are the most favourite picks of the tourists – followed by New York, USA and Edinburgh, Scotland.
Dubai residential properties near the world’s tallest tower – Burj Khalifa, can earn around AED4,200 per night. And according to this estimate, it would just take four months for the Airbnb landlords to break even on the investment of such expensive property.
“Dubai is the most attractive property market and now it has proved to be the most profitable one as well for Airbnb landlords. According to the current trend and on-going rental amount, it would just take four months for property investors to balance the average cost and start earning their money back,” states a rental expert at Jetsetholidayhomes.
What do real estate experts have to say about it?
After a temporary global pandemic slump, Dubai real estate market has made a strong comeback from the slowdown. The realty market has not just shown recovery signs due to financial measures but the pent-up demand and supply of required properties also helped drive the property sales up in Dubai.
The UAE economy has also made a tremendous comeback – thanks to the successful roll-out of the COVID-19 vaccination drive and the UAE government’s swift and effective response to handle the global pandemic. Moreover, the government has accepted the challenge to hold the global event Expo 2020 and introduced massive residence visa reforms. This all has led to improve potential investors’ sentiments, which resultantly uplifted the Dubai real estate sector.
Airbnb – A successful venture
Despite hurdles and tough times, Airbnb proved to be a successful business idea. According to an estimate, Airbnb has earned around $150 billion from 2007 to February 2022.
Locations that proved to be unprofitable
Dubai is crowned to be the top most profitable city in the world for Airbnb landlords; Cuzco – Peru proved to be the most unprofitable location for landlords to even begin Airbnb business. According to a survey, it would take more than 13 years to break even the investment; after which, the property will start earning money for the landlord.
Beijing – China is the second more unprofitable city for Airbnb landlords; where it would take around 3,771 nights to break even on a 1 bedroom property and start earning some profit.
Beijing is followed by Nairobi – Kenya, where the rent per night could be roughly around £32 per night and it would take almost 3,389 to cover the average cost of the property.
London is also a not-so-popular city for Airbnb landlords, in fact, it is the fourth least profitable city on this chart. It would roughly take more than five and a half years to start earning their money back from their London house.