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Will holiday home rentals in Dubai feel the Qatar World Cup buzz long before kick-off?

Football fever is inevitable and unavoidable, especially in a region like the Middle East where it is often a source of national pride. With the FIFA World Cup in Qatar less than six months away, we can already feel the vibrations in the air and the rumbles underfoot which, in no time, will turn into a frenzy of crowded stadiums.

This is completely normal in Doha, but what about Dubai? Just an hour’s flight, Dubai is perfect for fans who want to catch all the football action as it unfolds, but prefer to spend their time between matches away from the crowds. Therefore, we can expect to see a huge increase in short-term and holiday rentals in Dubai during the World Cup period. In fact, requests are already increasing.

First come, first reserved

Everyone knows that if you’re traveling during peak tourist season or a major event, you need to book your flights and accommodation as early as possible to get the best deals. That certainly seems to be the case for football fans.

It goes without saying that in October we will reach boiling point, with people trying to organize last minute holidays for themselves or, if possible, for family and friends. But the savviest travelers are already looking for the best prices in the short-term rental space in hopes of beating the rush and securing their spot long before the World Cup kicks off.

However, those looking for a bargain might not find quite what they are looking for, even with an early investigation. Many landlords understand that the World Cup will be a big draw for short-term renters looking for an urban getaway where they can relax between games. As such, they are more likely to charge a higher price even if one were to start booking now.

If they don’t rent out their property in the summer, they can easily make up for that as the World Cup approaches, when they’ll be able to charge the same price – or more – depending on market activity. That being said, it certainly won’t be a deterrent to die-hard fans wanting to get housing as soon as possible, even if it comes at a price.

Training effect

The different segments of the real estate market rarely operate in isolation. As the short-term rental market heats up, this impacts the supply of homes available for long-term rental, creating upward pressure on prices. Rents in Dubai have increased over the past 15 months, with some areas seeing increases of up to 40% in the first quarter of 2022.

Prime and super-high standard homes are in short supply, which has led to significant rent increases in areas such as Palm Jumeirah, Dubai Marina and Jumeirah Beach Residence. It’s also among the best areas for short breaks in Dubai – who doesn’t love a beach holiday, after all? – suggesting that we could be looking at further price increases by the end of the year.

The effect would also be felt in real estate sales, but perhaps less strongly. It’s fairly unlikely that homes for sale will be taken off the market so they can be rented out for the World Cup, but that means there’s a little less chance of new homes coming on the market.

Few believe that market pressures will ease in the near future. We have seen small market dips caused by Covid variants and rising interest rates, but the overall chart is still up. Units in areas such as Bluewaters Island have been leaving the market at record speed due to design, location and price. It’s rare for anything to come back on the market as resale or even rental at this time.

A few units may end up being put up for rent through November and December, but there is still a shortage of stock relative to the incoming demand and there will be additional pressure on selling prices in these areas. .

Real estate in Dubai had a strong first half to 2022, breaking a 13-year record in May. While inflation and rising interest rates are expected to have an effect at the mid-market level, the affordable luxury and super premium segments are expected to continue posting record numbers for the remainder of the year. And the potential for buoyant business during the World Cup should certainly add to those numbers.