FIFA World Cup Qatar boosted holiday homes market in Dubai
The 2022 FIFA World Cup is all set to kick off in Qatar from November 21 to December 18, 2022 — the first time the mega sporting event is being held in the Middle East. The football fever is high, and along with that, the real estate sector of Dubai, particularly the luxury holiday home sub-sector, is also gearing up to facilitate all the tourism and economic activities an event of such magnitude accompanies.
The expectation is not misplaced — Dubai’s holiday homes sector is renowned for offering the best of experiences and the comforts of a luxury hotel. The Emirate of Dubai offers the ideal base for football fans to travel to match venues and back. For instance, Doha is just an hour away by plane, and it is very convenient for fans to catch the action in Qatar and return to Dubai the same day, particularly in view of daily match-day shuttle flights between Doha and Dubai.
The FIFA fever is also encouraging various players in the hospitality and travel sectors to offer bespoke packages for tourists and fans, with several amenities, such as limousine transport and chartered flights, thrown in. All of these have made the Dubai real estate industry very bullish about the event, with the holiday homes sector particularly optimistic about raking in a sizeable fortune.
Good times continue for holiday homes
For Dubai, this will be the second successive year of good times in the short-stay category. Last year, property investors, particularly holiday home entities, benefitted from Expo 2020 and end-of-the-year festivities. And this year, FIFA is all set to boost the demand for holiday homes.
As per market sources(1), the rates for short stays in holiday homes are already shooting up. A 15%-25% increase in short-stay leasing rates is expected in December compared to the prevailing rates. A 10%-15% premium on prevailing rates for the same homes in the same period of the previous year is also expected. In some cases(2), a price tag of more than $410,000 (AED1.5million) for the month-long football tournament is being reported.
In Palm Jumeirah, a five-bedroom villa is going for $61,000 (AED225,000) a month and nothing less than $34,000 (AED125,000) a month in Jumeirah Islands. While these rates might seem high, they come across as far more reasonable compared to five-star beach hotels, where tariffs are in the region of $2,720 (AED10,000) a night. For a month, fans would have to cough up $81,690 (AED300,000). Small wonder then that they prefer Dubai’s famed holiday homes instead!
The short-term rental business has been doing pretty well in the last two years, with the pandemic causing travellers to prefer a less-crowded property with privacy to bustling hotels. The football World Cup in Qatar is also expected to attract large numbers to the holiday homes of Dubai as the city offers every convenience to fans and functionaries. It has a range of tourist experiences and a variety of cuisines to offer, and its location is also a huge advantage. The first World Cup in the Middle East is set to ring in good fortune for various stakeholders, and Dubai’s holiday home sector is expected to be one of the biggest beneficiaries.