Which is Better Investment: Holiday Let or Buy to Let?

properties in Dubai

Revolutionising the future of hospitality, and offering stress-free staycations – Dubai is spanned across the most prestigious and admired area of the UAE. Flanked across the Arabian Peninsula, this dynamic emirate has catalysed the economy and cemented its reputation as a true global icon. Providing the ultimate metropolitan lifestyle with adrenaline pumping outdoor activities, abounding with world-class landmarks, best-performing Dubai real estate market, entertainment and glamour, Dubai is an absolute worldwide attraction.

The speed of Dubai’s metamorphosis is completely non comparable and unparalleled, creating a bustling emirate and a thriving metropolis in the heart of the desert in less than half a century speaks volumes. The stark whiteness of the sand and the size of the skyscrapers are likely to astound many visitors, but it is still possible to travel back in time by taking a desert safari or a boat tour on the creek.

Dubai – where real estate and tourism go hand in hand

Engulfing yourself in the serenity of turquoise waters and crystal blue skies on the city’s well-known beaches and indulging in an endless array of culinary treats at Michelin starred restaurants, is what makes your stay unforgettable. Captivate yourself while watching your favourite athletes compete in some of the year’s most prominent international sporting events. Alternately, you may go shop till you drop in any of Dubai’s souks or malls.

Keeping the dynamic growth in mind, investors have swarmed Dubai’s hot property market in the first half of the year as the emirate reaped the rewards of an influx of tourism sector. The sales volume of residential properties in Dubai rose by 60% during the year’s first half, while the average sale price increased by 85%.

Hospitality sector gaining momentum

properties in Dubai

Ease is where hotel meets home, mixing the finest hospitality of a hotel with the inspiring wanderlust of a home. Offering homes across the city, Ease provides an unparalleled experience where visitors can stay like a local and experience the city like never before. The properties for sale in Dubai have faced growing headwinds in the form of inflation, an influx in interest rates and a strengthening dollar. 

However, according to the apparent conditions, this has worked in favour of Dubai real estate and has shown rising favourable property trends. Even in the face of eco-political setbacks, the Dubai economy has proven to be resilient. Dubai real estate market is still the strongest in the region despite the recent downturn in the market. Things are expected to turn around this year. High-end residences in key locations such as Emirates Hills, Palm Jumeirah and Dubai Marina are beginning to grow in price, albeit slowly. 

A remarkable resilience to market downturns and stress has been demonstrated by the Dubai real estate market in recent years. Because of this, it is even more appealing as an investment opportunity.

Buy to let vs. Holiday let

A new phase of expansion in the Dubai real estate market is expected to begin, according to the most recent projections. The projected rise in economic activity and the resulting boost in tourism is expected to have a further favourable effect on the Dubai real estate investment market. For those with assets in sought-after localities, the current infrastructural growth and influx of tourists and economic migrants are good news for future rental yields and property value appreciation.

Buy to let properties in Dubai

Buying to let properties in Dubai is a good investment since buyers are searching for a reliable investment with attractive property prices, payment plans, and other advantages. For ready-to-let properties in Dubai, investors can expect a 5% to 6% return on investment. Investing in property and letting it on a short-term basis, becoming an increasingly popular option for visitors seeking a more “homey” and “genuine” vacation, can also benefit investors.

Moreover, there are several other important factors that you must consider before investing in buy-to-let properties.

Holiday let properties in Dubai

Compared to long-term rentals, vacation rentals are typically more profitable. Your income potential is increased by the much higher weekly rate charged for vacation rentals. The typical annual income of owners of holiday let properties is way higher than buy to let properties in Dubai.  By incorporating elements that generate cash, vacation home owners can increase their rental income. Earning more money with the inclusion of a hot tub (54%) pet-friendly (11%) and Wi-Fi (16%).

properties in Dubai

Although it is important to be aware that owning a furnished holiday let properties in Dubai will result in higher expenses including utilities costs, property management fees, or general maintenance costs, the gross income each year is significantly larger. With spectacular landscape and spell binding beaches, it is hardly surprising that the biggest motivator for investing in a holiday let is that you can combine owning your dream holiday home with running a successful business and offsetting the cost of your own holidays.

While buying the holiday let property it is highly recommended to choose the property somewhere you would like to holiday yourself. With azure skies, turquise waters, pristine white beaches along with breathtaking coast and lively towns, there are plenty of fantastic locations to choose from in Dubai.

How to find buy to let and holiday let properties in Dubai?

Expatriates can rent or buy properties in Dubai if they are a legal resident with a valid Emirates ID. The emirate’s real estate investment is lucrative and the market is thriving, with a wide range of alternatives for investors and tenants looking for anything from luxury to affordability.

A wide range of fairly priced buy to let properties in Dubai is available. From low-rise, mid-rise to high-rise structures and skyscrapers to villa compounds and townhouse communities, Dubai is the ideal place to call home.

Online agencies are the most typical place to begin your search for a home in Dubai. Many real estate investment portals provide access to millions of residential listings, pictures, floor plans, and virtual tours.

properties in Dubai

It is quite easy to find what you are searching for in a furnished or unfurnished property on these websites, as well as the facilities that come with the unit and your budget. Dubai is a miracle of architecture, with sky-scraping apartment buildings, exotic man-made islands, cerulean artificial lakes, and a plethora of other green places.

To begin searching for holiday let properties that fit your needs and your budget, you must figure out how much money you have to work with. Do not be afraid to compromise on non-essential features if necessary.

Consult with an Expert

Among all the home buying tips, considering hiring a real estate expert specialist familiar with the rules and regulations of Dubai real estate is the wisest thing to do. The experts can help you with the real estate investment and help you through your first acquisition of a buy to let property in Dubai. DLD-registered agencies and brokerages, many of which have their in-house lawyers and escrow facilities, can ensure that your transaction is secure and transparent.

A lot of time and effort may be required while looking for a holiday let or buy to let properties in Dubai, but if you want a seamless property-purchase process. Remember, doing due diligence is essential to find the right real estate agency in Dubai as these efforts are well-rewarded. To be in touch with professional Dubai real estate agents call the team HFRE at +971 4876 2473 or write us an email at info@hfre.ae. One of our sales experts will get back to you to help conclude the best real estate investment deal, according to your budget and investment need. 

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