Dubai’s Holiday Homes Market To Impact Tourism, Real Estate

Sheikh Mohammed bin Rashid al Maktoum, ruler of Dubai, has issued a decree that will help regulate the holiday homes market in Dubai and broaden the range of visitor accommodations, state news agency WAM reported.

The decree authorises Dubai’s department of tourism and marketing (DTCM) to grant licenses to parties who intend to rent out furnished residential property on a daily, weekly or monthly basis.

With the objective of boosting growth in the emirate’s tourism sector, the decree dictates that DTCM will define the standards that must be met and procedures that should be followed in order to receive a license.

According to the decree, DTCM is tasked with duties such as acceptance and approval of license applications, conducting inspections on the properties to ensure they meet required standards and create a database of all such licensed establishments in the emirate.

The licenses for the holiday homes market will be restricted to certain areas of the emirate.

In addition, the decree also specified that two new classification standards will be added to the existing hotel classification framework with holiday homes classified under deluxe or standard.

The hotel classification framework came into effect earlier this year to improve the quality of hotel rooms in the emirate.

“The regulation of the renting of properties as holiday homes will have a considerable positive impact on two of Dubai’s key industries – tourism and real estate,” said Helal Saeed Almarri, director general of DTCM.

“By including holiday homes as part of our hotel classification framework, we will ensure that visitors can book a private apartment, townhouse or villa with full confidence that the accommodation is of a quality standard, has the appropriate insurances, and is managed by a qualified party.”

Almarri also said that DTCM is working with the private sector to bring more five-star hotels to the emirate.

“In September of this year, DTCM announced a financial incentive for the development of new three and four star hotels,” he said.

“Now, under the directive of vice president and prime minister and ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, the licensing of properties as holiday homes will add further accommodation options.”

Dubai’s tourism chief also said that the introduction of holiday homes also provided a potential revenue stream for owners of second and multiple properties by allowing them to lease out their properties on an annual basis.