Dubai property investors are putting their money into the Dubai hotel apartments and Short term rentals Dubai markets as the sector booms from the emirate's tourism boost. Most recently, Jumeirah Group, the Dubai-based luxury hotel company, was appointed to manage a luxury mixed-use development in Business Bay.
The $1 billion tower Jumeirah Business Bay will house a huge luxury Jumeirah hotel, 350 serviced apartments and 290 luxury residences. Located in the heart of Business Bay and featuring a built-up area of over 3 million square feet, the skyscraper is expected to be completed before World Expo 2020. A luxury resort, the tower will also house numerous food and beverage outlets, a Talise Spa and Health Club, conference facilities and an open-air rooftop Sky bar.
As Dubai moves towards its vision of receiving 20 million visitors a year by 2020 and increase tourist accommodation in time for the mega event, the government is making efforts to standardise the Dubai hotel apartments and Short term rentals in Dubai markets. As per the new decree, landlords who rent out their furnished properties on a short- term basis need to get licenses. The directive also demands that any landlord renting out holiday homes on a daily, weekly or monthly basis apply for a license from the Department of Tourism and Commerce Marketing (DTCM), the body which classifies Dubai hotels. Additionally, DTCM would grant new licenses only to landlords with properties in specific Dubai areas.
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This decree is expected to regulate the Dubai hotel apartments sector and create opportunities for homeowners to generate income from short term leases, legally. Why? Because previously, Dubai residential property owners could only legally lease their homes on a long-term basis, despite the fact that some homeowners had been advertising their properties as holiday lets and Short term rentals in Dubai and leasing them on a short-term basis. As a result, short-term tenants ended up not securing access to the building's communal facilities by the developer or the building owner.
This law on Dubai hotel apartments sector and holiday rental licensing is anticipated to regulate this grey area and offer a revenue stream for landlords based on lucrative short-term rents which could fetch close to twice the rent of traditional annual lease contracts.
Not just for landlords; as Dubai gears up to welcome millions of visitors in time for Expo 2020, this directive will ensure that tourists or those looking for Dubai hotel apartments and Short term rentals in Dubai can book a private apartment, town house or villa with the confidence that the accommodation will be of a certain standard, has the appropriate insurances and is managed by a qualified party.