This will give the already-growing Dubai rental market a major boost
The upcoming FIFA world cup Qatar 2022, all set to commence on 20th November 2022, is expected to foster the short-term rental market growth in Dubai.
As it’s the first-ever global football event that’s being held in the Arab world, people will be drawn from the Middle East and football fans from across the globe will pour in to witness the speculator games during the one-month-long event.
Dubai’s proximity to Qatar and the increased supply of short-term rentals will help it benefit from the 22nd edition of the FIFA world cup, according to Zoom Property Insights.
Ata Shobeiry, CEO at Zoom Property, believes that the real effects of the upcoming FIFA world cup will start to show in October.
“Many real estate agencies and short-term rentals have reported advanced bookings for November and December. However, the real impact of this upcoming mega football event will be evident in October, a month prior to the event. It will give the already-growing Dubai rental market a major boost”.
The expected increase in rental prices
Key performing areas in Dubai have reported a significant increase in rental prices during the first half of the year. Apartments in the affordable category have witnessed an increase of 21 per cent, while the rental cost for luxury flats has gone up to 43 per cent. Similarly, affordable villas and luxury villas have also reported a rental cost increase of 29 per cent and 30 per cent, respectively, according to Zoom Property Insights. These numbers are expected to increase further during the last quarter of the year, due to the FIFA world cup.
A switch to short-term stays from 1-year rentals
Since many hotels and resorts in Dubai are already pre-booked, visitors are looking for more affordable options, which has led to an increase in demand for short-term rentals. As a result, many landlords are switching from 1-year rentals to short-term stays in anticipation of increased activity during the upcoming FIFA world cup.
Not only this, but the daily rate of rental homes is also witnessing an increase, in response to the rising demand. As per Zoom Property Insights, Dubai’s vacation rentals recorded a rise of around 65 per cent. A further increase is expected during the last quarter of the year.
“Apart from the real estate, the benefits of the upcoming FIFA world cup will extend to tourism and hospitality sectors as well. This will eventually benefit the economy on the whole,” Shobeiry concluded.