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Ongoing promotion efforts in the UAE and Saudi Arabia have reshaped the real estate market towards continuous high-season demand, as both countries attract more business travellers, relocating families, and tourists all year round.

Rental providers are seeing surging demand due to an increase in room tariffs by traditional hotels.

Summer Season and Beyond

Proptechs such as Silkhaus, Colife, and BetterHomes are gearing up for a surge in the influx of visitors and business travellers to the UAE and Saudi Arabia during the current summer season and beyond. International vacation booking platforms such as Airbnb, Booking.com, and Quora are deploying innovative region-specific promos amid campaigns run by Dubai and Abu Dhabi as destinations for all seasons.

Riyadh: A Growing Weekend Leisure Market

Riyadh has commenced promoting the capital city as a growing weekend leisure market. Industry players said the campaigns by Dubai and Abu Dhabi are playing a crucial role in attracting guests even during the summer season, previously considered a low season.

Cost-Effective Ways to Experience the City

“Travellers are increasingly looking for cost-effective ways to experience the city, particularly during non-peak times, keeping companies like ours quite busy to cater to the rising demand,” said Peter May, Vice President of Operations at Silkhaus.

Dubai Leads Google’s Search Trends for Summer Holidays

Recent data showed Dubai topping Google’s search trends for summer holidays in 2024, which is anticipated to lead to a rise in demand for accommodations.

Promoting Indoor Shopping and Sports Activities

Industry players said Dubai is strongly investing in summer activities, marketing itself as a year-round destination, with the city’s tourism authorities promoting indoor shopping and sports like padel to overcome its image as an unbearably hot place best avoided in summer.

Moving to Dubai Permanently

Many people are moving to Dubai permanently, with the summer being the preferred relocation period, contributing to a significant influx of new expats to the city.

Focus on Two Key Segments

“This summer, the focus is on two key segments: Holidaymakers seeking alternatives to traditional hotels, and with the UAE’s year-round appeal due to various activities, it’s becoming a destination for all seasons,” said the Silkhaus senior executive.

Growing Demand for Short-Term Rentals

Ilnara Muzafyarova, CEO of Colife, a Dubai-based property management firm operating globally, said with Dubai’s infrastructure developing at a faster pace and businesses growing, opening branches in the emirate, more and more people are coming for business trips to set up operations.

Campaigns Paying Off

The campaigns by cities such as Dubai and Abu Dhabi to make them year-round destinations for travellers are paying off in a big way, said Muzafyarova.

Relocating to the UAE, Saudi Arabia Pushing Up Demand

Senior executives at property management firms said they are also seeing a huge jump in demand for short-term rentals on account of families and business professionals relocating to the UAE or Saudi Arabia.

Indirect Booking Platforms

Industry insiders said they are also observing guests increasingly utilising indirect booking platforms like Property Finder and Bayut, which cater to longer lead times and extended stays, essential during summer.

Supply of Apartments Becoming Available

The surge in demand comes even as Dubai is estimated to have seen a 35 percent annual growth in the number of property listings for rentals this year. May said with more supply of apartments becoming available, Silkhaus will be able to meet the rising demand this year.

Saudi Arabia’s Business Travel Segment to Grow

“Looking ahead, we anticipate Saudi Arabia’s business travel segment to grow, and potentially take the larger share of our demand. This will also remove seasonality in the Saudi market, positioning it for year-round growth,” said the Silkhaus senior executive.