A new report focusing on the growth of Airbnb in Dubai has been launched by real estate services firm Chestertons MENA; the findings revealed 2018 saw a year-on-year increase of 69% in market revenues with the Airbnb market now generating more than US$101 million in the emirate.
The 2018 data revealed revenues for properties listed on the online community marketplace increased by 69% compared to the previous year, reaching a total of $101,230,708.
As of December 2018, active listings had increased by 26% to 5,009 units compared with 2017 during which 3,987 units had been listed, and increased by 81% compared with 2016 when there were just 2,775 units listed on the site. Active listings in this report are based on entire units, as per current legislation.
Just a few days ago, HotelierMiddleEast.com reported Knight Frank's research which listed more than 10,000 active listings - that was based on properties which have an achieved rate in 2018 (Year to June 2018).
The Chestertons MENA report also outlines that average occupancy levels reached 65% during Dubai’s peak season in (March) 2018. During the same period in 2017, occupancy levels were at 50%. During the low season months of June, July and August 2018, occupancy averaged 49% which was higher than the same period in 2017 where occupancy averaged just below 40%.
“Looking at the increase in listings in the last nine years, we can see a meteoric rise from just two in 2010 to 5,009 by December 2018 which has resulted in Airbnb’s market value growing exponentially to over US$101 million as at the end of last year,” said Ivana Gazivoda Vucinic, head of advisory and research, Chestertons MENA.
The report identified Downtown Dubai, Palm Jumeirah, Dubai Marina, Dubai Media City 2 and Al Barsha as the densest areas for holiday home rentals, with each area commanding an average daily rate (ADR) of $241, $359, $218, $129 and $188 respectively.
Airbnb’s best performing property in Dubai in 2018 was a six-bedroom, 7.5-bathroom villa on Palm Jumeirah which accommodates up to 12 people, earning a total of $428,436 with an ADR of $1,433.
“As Dubai prepares for Expo 2020, we expect a significant increase in Airbnb rentals over the six-month period of the event. Due to increased visitor numbers, the Airbnb stock, coupled with the additional standard hotel stock, is expected to easily absorb the increased demand. We also expect to see a short-term spike to ADRs during this period,” added Vucinic.