Expo 2020 Dubai: Red Hot Holiday Homes market gets Hotter

Having handled the global pandemic better than almost any nation in the world, economic activity is back on track in the UAE. This is perhaps most starkly visible in Dubai, with the rescheduled mega event that is Expo 2020, injecting an even more decisive momentum.

Prior to the world coming to a virtual standstill because of the COVID-19 virus, things were on track for the Expo 2020 to leave a huge impact on Dubai’s economy. However, much like the Tokyo Olympics and several other major international events; the pandemic brought all plans to a halt. With priorities shifting to addressing an unprecedented global crisis, all activities surrounding the Expo were put on the backburner. Speculation was rife about whether the event would have the sort of impact that had been envisioned, even if it was rescheduled. Fortunately, with the world beginning to return to a cautious but optimistic ‘new normal’, the Expo 2020 is now perhaps even more relevant. Especially in terms of driving the resumption of economic activity, as well as showcasing innovations that could make our world more sustainable, and resilient to such disruptions, in the future.

One area of the economy that seems to be leading this return to normalcy is real estate. In particular, the Dubai Holiday Homes market is making huge strides towards injecting much needed dynamism, into the economy of the Emirate.

A bounce-back that is stronger than everBack in 2019, the Dubai holiday homes market had grown to more than 7,000 properties⁽¹⁾. With travellers preferring the comfort and convenience of such hospitality options, the market was well

on its way to even faster expansion. Suddenly, out of nowhere, the pandemic brought both international and intra-national travel to a halt, as the world bunkered down into lockdowns, to try and contain the crisis.

As the effects of the pandemic continued, month after month, 2020 saw the Dubai holiday homes market shrink significantly, with many property owners who had enthusiastically adopted this new model, going back to long term leasing. However, given Dubai’s excellent handling of the crisis, a high vaccination rate, and people returning back to offices and schools; the stage was set for a recovery in holiday homes as well. And the approaching Expo 2020 mega event has proved to be the ideal impetus, to create a renewed boom.

The positives are lining up for holiday homes in Dubai

A strong indicator that the holiday homes market is up and running once again, in Dubai, are recent figures which confirm that occupancy and nightly rates are up by 124%⁽²⁾ – to reach bottomline figures that are between 40%-60% higher than properties put on a standard long lease. A major factor in play is that – despite a generally more positive sentiment than was prevalent during the pandemic – travellers are still cautious, given the threat of new variants, and conflicting reports on how effective vaccinations will be against them.

People want more control over their surroundings, and having the option to restrict their contact with strangers to a minimum. Holiday homes – with the convenience of being able to live in a contained space with its own kitchen and other amenities – present a great option to strike a middle ground. With the influx of tourists, from all around the world, set to hit massive highs during the

Expo 2020; holiday homes are a great way to replicate many of the same advantages of being safe within one’s own home, while travelling.

And the impetus is not limited to the demand created by the Expo alone. Locked up in their homes for several months, people from all around the world are looking to take a break, and ‘staycations’ are proving to be a popular option. Dubai, with its combination of tourist attractions, great shopping, and luxurious accommodation in close proximity to world class rest and recreation, is proving to be a hit in meeting this demand as well.

All in all, many different positive influences are coming together, to drive a robust recovery, in the Dubai holiday homes market. And with most of these factors – including the demand induced by the Expo, as well as the ‘staycation’ segment – set to exert their influence for many months to come, this is a recovery that looks well positioned to leave a long-term mark.