Short-term lettings have been on the rise for a number of years but in recent weeks Allsopp & Allsopp Real Estate have seen this increase significantly.
The brokerage reported a 107% rise in booking enquiries for short-term lets in the two weeks following the UAE being added to the UK’s Amber list compared to the two weeks prior to the announcement.
Lewis Allsopp, CEO of Allsopp & Allsopp says “We are seeing a lot of UK nationals enquiring for a maximum of two month stays in our short-term lettings units. This is mainly because they are unsure as to which area they would like to be when committing for a long term basis or while they wait for their Visa and Emirates ID to complete the long term process.
Short-term lettings is growing ever popular within the expat community, especially with those who are looking into life as an expat in Dubai. The enquiries we are receiving are for trial runs in a ‘home’ environment and people coming over for interviews and looking for jobs.”
The leading Dubai real estate brokerage is known for its expertise in the residential real estate market and opened a short-term lettings department in February 2021 after receiving more enquiries for short-term letting options from clients.
Allsopp explains “The covid-19 pandemic flipped a lot of people's lives upside down and some residents of the UAE were unfortunately left in wonderment of their future jobs and lives in the city. Short-term lettings was a great option for these residents whilst they navigated their way through uncertain times. People were less reluctant to commit to an annual lease during turbulent times and were far more interested in renting on a month by month basis whilst they made big decisions.
The pandemic also left tourists less inclined to book into hotels and rather stay in a private apartment or villa with their families for their vacation to keep themselves safe and have more control of their exposure to others. This has seen short-term lettings' popularity snowball and continue to do so.”
The short-term lettings market is becoming renowned for it’s rental yield and more property owners are leaning towards renting their properties out short-term rather than annually to get the most out of their investment.
Allsopp says “Property owners are becoming more educated in short-term lettings and once they can see past the initial costs to set-up their property with furniture and licensing, they can see that they have the potential to earn up to 20-30% more on their investment. Allsopp & Allsopp short-term lettings department have seen an increase in landlords signing-up by 75% from the two weeks before the UAE’s addition to the UK’s Amber list when compared to the two weeks after.
In my opinion, many property owners were awaiting the Amber light before setting up their property for short-term lease. I must point out that some of these properties that have been signed up are not immediately available but will be becoming available in the latter months of the year when tourism in the emirate is at its peak.”