Chestertons MENA, a leading international property agency, has revealed a special market report on the growth of Airbnb in Dubai, between August 2015 and August 2017.
As indicated by the report, revenue for properties listed on the online marketplace and hospitality platform increased by 421 per cent to top $3.3 million in August 2017, with listings almost tripling to 3,249.
As a result of the relaxation of rules, allowing home owners and tenants to list their properties directly on the site, there has been a significant rise in the number of listed Airbnb units available, with a 161 per cent growth from 1,241 units in August 2015 to 3,249 units in August 2017.
According to Chesterton’s research, the Airbnb concept has complemented the hotel offering within the emirate, by providing an alternative travel experience, with average occupancy levels topping 57 per cent during Dubai’s peak season. Airbnb occupancy levels averaged at nearly 40 per cent throughout the low season months of June, July and August 2017 – on par with performance in the hotel industry.
Head of advisory and research, Chestertons MENA, Ivana Gazivoda Vucinic stated: “In April 2016, a new Executive Resolution No. (1/2016) concerning the Second Edition of ‘Dubai Holiday Home Rental Regulations’ was introduced, resulting in the relaxation of the rules surrounding holiday home rentals. This has, in turn, increased the number of listings and created alternative accommodation options to achieve the emirate’s 2020 objectives.”
She concluded: “New regulations and an increase of Airbnb supply will help grow and diversify tourism, increase choice and attract new guests to the emirate, while also providing investors with an alternative income stream.”
Dubai Department of Tourism and Commerce Marketing (Dubai Tourism) subsequently signed an agreement with Airbnb in May 2016, to help further regulate the accommodation offering available and ensure only whole or integral units are marketed, promoting responsible hosting and boosting growth and diversification of tourism in the emirate, as part of Dubai’s strategy to attract 20 million visitors by 2020.