Whenever a European city introduces restrictions on Airbnb listings, investment in Dubai’s short-term rental market tends to rise immediately, industry experts say.
“The Dubai property market experienced this last year when Greece imposed limits on short-stay rentals, prompting international investors to turn their attention to Dubai real estate,” said Vinayak Mahtani, CEO of bnbme, a consultancy specialising in holiday home management.
“The same effect is expected now that Spain has introduced similar restrictions.”
Dubai’s short-term rental sector is well-positioned to attract further investment, with landlords drawn by the strong rental yields on offer, Mahtani added.
Concerns over ‘over-tourism’ and rising rental prices have prompted some popular European destinations to clamp down on short-stay listings.
Spain and Greece enforce limits
This week, Spain ordered Airbnb to reduce its listings by nearly 66,000 properties, citing worries about ‘over-tourism’ and rising domestic rents. Greece also introduced new rules earlier this year banning new short-stay listings in certain parts of Athens.
Dubai currently has around 30,000 to 40,000 short-stay rental properties. “But that is still far fewer than the city’s 130,000 hotel rooms and serviced apartments,” Mahtani said. “Dubai’s Department of Economy and Tourism also enforces strict regulations on the maintenance and rental of short-stay properties, ensuring high standards and compliance.”
Importantly, since the early 2000s, authorities have ruled that developers cannot restrict short-term rentals in their buildings unless this is clearly stated in the sales and purchase agreement.
