Short-term rentals market the new game changer for Dubai’s thriving real estate market
The Smart Concierge, a pioneering local player in Dubai’s real estate market, has partnered with industry giants like Airbnb and Booking.com to enhance the number of listings on its technology-driven platform.
The flourishing real estate sector in the UAE has given rise to new homegrown businesses, with The Smart Concierge, a UAE-based proptech company, poised to transform short-term rentals into a multi-billion-dollar industry in Dubai. This innovation offers property owners in the city the potential to earn up to 30 percent higher income compared to traditional long-term rentals, catering to both global institutions and individual property owners.
Furthermore, The Smart Concierge’s collaboration with global leaders in the field, including Airbnb and Booking.com, aims to bolster the number of listings on its technology-driven platform. This initiative encompasses property owners and customers, extending its reach to prominent corporate groups in the Middle East region.
Industry experts anticipate that the burgeoning high-yield short-term rental market will stimulate additional demand for the already thriving real estate market in the country.
The short-term rentals market presents a $14 billion opportunity throughout Asia.
The remarkable resurgence in travel to the UAE is a source of great optimism, instilling confidence in the business’s future and the local economy.
The sustained growth in the property market underscores the substantial potential the company envisions within this sector.
“In essence, our primary focus lies within the short-term rental market across Asia, which represents a $14 billion opportunity. We are still in the early stages of our journey, with considerable room for expansion. It’s worth noting that we are already exceeding the market’s growth rate for short-term rentals in Dubai.”
Over the last three years, the Dubai short-term rental market, gauged by the number of Airbnb listings, has consistently grown at an average rate of 45 percent year-on-year. In stark contrast, The Smart Concierge has achieved an impressive growth of 170 percent in just the past year, from Q2 2022 to Q2 2023.
The global short-term rental market is estimated to have a total addressable market (TAM) size of $110 billion.
“The GCC region is still in its infancy when it comes to this market, offering numerous opportunities for us to capitalize on. While cities like Dubai are already well-established destinations, other regional cities have lower short-term rental penetration, and this is precisely what we aim to change.”
The UAE remains a year-round market for short-term rentals, according to the founder of The Smart Concierge. He noted that the diverse nature of both business and leisure travel to the country ensures that there is no significant downtime for the short-term rental market.
“Different groups of travelers consistently visit the UAE, with notable spikes in activity during the fourth and first quarters. This uptick often coincides with better weather conditions, driving increased demand in tourism.”
Regarding the company’s business model, Ivan explained that real estate partners who register with the company can list their properties on The Smart Concierge’s platform and on various prominent leisure and business travel platforms. This strategy has successfully attracted travelers from over 120 countries to The Smart Concierge.
Ivan also highlighted that the company’s platform harnesses technology, including pricing automators, to optimize revenue generation for its real estate partners. He emphasized that their model offers a 20-40 percent increase in income compared to traditional rental options.
Additionally, The Smart Concierge collaborates with numerous corporate groups in the region who prefer to reserve furnished apartments for their executives during relocations or special projects. Ivan pointed out that this arrangement allows companies to achieve significant cost savings while ensuring their employees reside in high-quality properties and experience the best neighborhoods in the city.