The Short-Let Market Review Report: Q1 2023
We are delighted to share AirDXB’s first Short-Let Market Review Report focusing on Q1 2023. In this report, we take a look at the key trends impacting the short-let market the year so far, such as the homeowner migration to long-term, as well as market performance indicators, including volume of stock, average returns, and occupancy rates.
Key Short-Let Trends from Q1 2023
Q1 2023 – The best performing quarter in Dubai history for real estate transactions. Sales value was AED 88.7B, up 9.5% v Q1 2022.. Sales volume was 30,900, up 7.5% v Q1 2022. A plot at Dubai Creek Harbour was sold for AED 1.57B: the largest deal ever recorded. The sector as a whole is booming, but what does this mean for the short-let market? We provide an overview in our Market Review Q1 2023 report.
Dubai welcomed 4.67 million overnight international visitors in Q1, up 17% from Q1 in 2022, fueled by a steady flow from three top source markets: Russia, India and Oman. Dubai’s hotel stock climbed to 150,000 keys in Q1 2023, while the short-let market saw higher than average occupancy rates.
The migration to the long-term rental market is at an all-time high with less new stock coming onto the short-let market and short-let homeowners transitioning across to long-term. This has created greater demand for the short-let market, increasing average daily rates & occupancy levels, resulting in higher returns for short-let homeowners.
The short-let market remains a strong property investment for those considering selling the property in the short-mid term. There can be up to a 20% increase in sale price for buyers looking for chain-free property acquisitions. For example, a tenanted 2-bed in 5242 Dubai Marina is 17% cheaper than the same apartment chain-free. AirDXB recently advised on a sale where the buyer paid 11% more for an apartment in Bay Central, as it was chain-free.
Ramadan starting in mid-March created the usual slowdown in the short-let market, however occupancy rates were still over 10% higher than Ramadan last year. We expect to see this increase in 2024 as Ramadan continues to fall in tourist high season months.
Access the full Short-Let Market Review Report:
AirDXB Short-Let Market Review Report Q1 2023
Please contact Gregory, Director of AirDXB Group, for further information.