The report focuses on the growth and popularity of the online platform with investors and holiday makers in Dubai since 2015 and reveals a 161 per cent increase in active listings, generating more than US$3.3million
Between August 2015 and August 2017 listings on Airbnb have nearly tripled to 3,249, from a base of 1,241.
Chestertons says the research has revealed that "rather than competing with Dubai's hospitality sector, the Airbnbconcept is complementing 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. During the low season months of June, July and August 2017, Airbnb occupancy levels averaged nearly 40 per cent - on a par with performance in the hotel industry".
Ivana Gazivoda Vucinic, head of advisory and research, Chestertons MENA, said: "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."
"Many real estate investors are diversifying into the holiday home rental market because of the ease in regulations, combined with higher returns when compared to the traditional rental market. On average, investors can expect an additional five per cent return when compared to long-term leasing rental yields," added Vucinic.
Average Daily Rates (ADR) for listings have retained consistent year-on-year with prices in August 2015 averaging US$153; in August 2016 prices averaged US$154; and in August 2017 the price was US$154. The first three months of 2017, denoting peak tourism season, witnessed ADR of US$226, US$201 and US$204 respectively.
More in-depth information on Airbnb in the UAE will be discussed at next month's Serviced Apartment Summit MEA in Dubai. Click here to find out more.