Dubai Hotels at Near Capacity: 22% Booking Boom in February
February 2024 has proven to be a significant month for Dubai’s hospitality sector, with a notable 22% surge in holiday home bookings. This increase in demand is largely driven by the city’s busy event calendar, which includes major events like Gulfood, (February 17th –21st) at the Dubai World Trade Centre, and the Dubai Duty Free Tennis Championships at the Dubai Duty Free Tennis Stadium in Garhoud, (February 16th - to March 1st). As these events draw international visitors to Dubai, hotel rooms are nearing full capacity, and holiday home rentals are experiencing a sharp rise in demand.
High Occupancy Rates Across Key Areas
Allsopp & Allsopp Holidays homes have seen an increase in demand for 1-bedroom and 2-bedroom holiday home units during these peak weeks, contributing to occupancy rates reaching 95% in Downtown Dubai and Business Bay. The Dubai International Financial Centre (DIFC) is operating at full capacity, with holiday homes in the area reaching 100% occupancy. These trends demonstrate the growing appeal and need of Dubai’s short-term rental market, which is increasingly becoming a vital part of the city’s real estate landscape.
22% Increase in Average Daily Rates
In addition to the surge in bookings, the average daily rate (ADR) for holiday homes has also seen a 22% year-on-year increase according to Allsopp & Allsopp data, signaling a sustained and growing demand for high-quality short-term rental properties. This trend reflects the broader rise in tourism to Dubai, with a noticeable shift in guest demographics. While visitors are still coming from traditional markets like the UK, Russia, and India, there has been a marked increase in bookings from the US, alongside consistent demand from Europe and Asia.
Dubai’s Booming Tourism Sector: A Bright Future Ahead
Looking ahead, Dubai’s tourism sector shows no signs of slowing down. The city is on track to welcome an estimated 100 million passengers by 2027, which is likely to further fuel the demand for holiday homes. The average stay length for visitors in 2024 was 3.6 nights for the market; however, guests of Allsopp & Allsopp holiday homes stayed on average 5.6 nights in 2024, which is 44% higher than the broader market average.
Are Investors Missing An Investment Trick?
Whether travelers are visiting for business, leisure, or a quick getaway from neighboring countries, Dubai’s holiday home market continues to thrive. The city has firmly established itself as a global hub for travel and investment, with a promising outlook for the future of short-term rental properties. For investors looking to diversify their portfolios and maximise returns, now is an ideal time to consider the lucrative opportunities within Dubai’s booming property market.
If you are interested in listing your property with the Allsopp & Allsopp Holiday Homes please get in touch with one of our experts.