Do you know that according to the growing warnings from banks and economists, the economy could be heading for a recession in the coming year? And this is making everyone feel worried thinking about recession is on the way. Food and gas price hikes, supply chain interruptions, the dispute between Russia and Ukraine, Federal Reserve policies, and the ramifications of the Covid-19 health disaster are among the number of contributors to this recession.
Economic Recession to Start in 2023
The vast majority of economists who conducted a survey, anticipate an announcement from the NEBR in the coming year. Among those surveyed, 38% predicted that the recession would begin in the first half of 2023, while another 30% predicted that it wouldn’t begin until the third or fourth quarter.
If this sounds alarming to you, as it should to any business owner or landlord, then you must pay very close attention to it. But don’t worry, we have got your back! In this blog, we’ll discuss the actions you can take to guarantee the continued success and guaranteed benefits from your short term rentals in Dubai, even in the face of economic recessions.
Short Term Rentals in Dubai projected to reach $189 bn
There has been a dramatic shift in the tourism industry over the past decade. According to Skift, a leading publication in the tourism business, the global vacation rental market is expected to be worth $189 billion by 2023, with the popular appeal of platforms like Airbnb playing a significant role in boosting this forecast. This will further create the emerging need of more vacation rentals management and holiday homes management providers.
Short Term Rentals in Dubai Thriving during Recessions
According to a recent analysis by Knight Frank, “Dubai now has more than 17,000 active listings on the Airbnb website, highlighting the amazing property staging services and region’s booming vacation home market.” During economic recessions, short term rentals in Dubai, specifically the popular domestic vacation spots of United Arab Emirates tend to fare well. The founder and chief editor of VRMIntel Magazine, Amy Hinote, claims that the short term rental industry has grown substantially during recessions.
Dubai Real Estate Market withstands the Economic Upheaval
It’s good to know that most of the real estate investments in Dubai are resilient to market fluctuations. Properties in high-demand, low-supply areas, multi-family dwellings, and custom-designed properties built with meticulous attention to detail are all less likely to suffer substantial value declines during recessions that makes business of short term rentals in Dubai quite beneficial.
Short term rentals in Dubai are becoming increasingly popular because they permit investors to sit back and collect income without having to do much effort along with many other benefits from the short term rentals. Demand were steady in 2021 due to high client satisfaction with great lockup space, and it boosted in 2022 when regulations were lifted.
There remains an emphasis on getting the greatest offers for prime real estate in Dubai. But still it is uncertain how long the recently developed parts of Dubai will remain attractive. Iconic places, such as Dubai Marina and Palm Jumeirah, will continue to draw tourists for the foreseeable future.
Holiday Homes Management & Vacation Rentals Management- Excellent Way to Boost Profits
The potential to get a Dubai Marina, Emirate Hills, Downtown Dubai properties etc at a budget and spruce it up with wooden floors, high-end bathroom fixtures, and contemporary furnishings is an excellent way to boost profits and this is where the focus is shifted towards holiday homes management and vacation rentals management that helps in managing the properties hassle-free and without in worries.
Real estate investors should be aware that certain properties are more susceptible to market swings than others, but with a sufficient enough time scale, most investments will likely yield a reasonable profit with the help of property staging services along with listing properties on various platforms like Expedia, Agoda, Airbnb and other top listing portals for short term rentals. Spending a little more time and energy on this may provide significant results and will help you in achieving all your financial goals.
Tips to Make Your Short Term Rentals in Dubai Business Boom
- Acknowledge that income from short term rentals in Dubai is not entirely passive.
- Invest your cash into short term rentals in Dubai in a desirable location.
- Employ the services of a property management firm such as Jetset Holiday Homes in Dubai.
- Increase your daily average rate as frequently as possible.
- Investigate your visitors carefully before booking their reservation.
- Promote your short term rentals in Dubai, especially during the off-season.
- Don’t settle for anything less than outstanding customer service.
- Get in touch with your previous clients.
- Build a preventative schedule.
- Take advantage of tax deductions.
Be open to Innovations in World of Short Terms Rentals in Dubai
Even in recessions, the investments in short term rentals in Dubai can outperform their long-term competitors if properly handled. The reality is that there is zero tolerance for mediocrity in the vacation rentals management market. Ultimately, if you want to be successful in the short term rentals in Dubai industry, you’ll need to find strategies to boost bookings while also developing a first-rate business.
The landlords and whosoever is interested in buying a property, really don’t have a choice but to be open to new perspectives. The future of the short term rentals in Dubai and the vacation rental sector is being shaped by the introduction of new technologies and innovations, so now is the time to get on board. The time of the future has arrived!