High profits for Airbnb homeowners near Burj Khalifa
Looking for some profitable real estate options? Maybe you should give Dubai a serious thought. If reports from Airbnb the global housing network is anything to go by then landlords with properties near Burj Khalifa can make some serious cash in the coming months. Following the pandemic, the UAE property market has slowly started stabilizing and this announcement comes as a welcome news to property owners in the area
On an average guest are charged anything between AED 3,100 to AED 4,200 per night for properties surrounding Burj Khalifa. This makes Dubai one of the most profitable and expensive locations world over and a hot property as well.
Airbnb has grown into a global online marketplace for homestays with more than 6 million listings worldwide. This includes listings in over 100,000 cities and towns according to the last analysis report.
The survey conducted by CIA landowners showed that it would take just a little over 4 months for property owners to break even. On an average it would take approximately £112,624 to buy an apartment in the city. This means that if the owner can sell a minimum of 121 nights the entire invested amount would be earned back. Of course, this calculation holds true to only those apartments located near the ‘world’s tallest building’!
As the Arab economy improves the property market in the UAE which is the second largest Arab economy becomes stronger and stronger. This steady improvement is based on the fiscal and monetary measures taken for the country’s overall development and wellbeing.
Some other contributing factors to this improvement are the fresh lease of life to long pending property demands and the drastic improvement in the investment potential and attitude of property buyers and sellers in the area. Not to miss are the amendments to visas for expatriates and the golden visa scheme which has further increased the buyer confidence in the market and its opportunities.
There are many other locations apart from Dubai like Hilo, in Hawaii, New York with owners of properties near Central Park, properties near the city’s famous Edinburgh Castle followed by homes in the Arc de Triomphe area in Paris, etc. that have high property value. While landlords may be skeptical about investing within properties for the purpose of Airbnbs, there is a demand for properties in this space and it is a profitable business move. It is important, however, that landlords weigh up the pros and cons with investing abroad, especially in countries in other continents where maintaining properties and guests will be harder. If these problems can be overcome, then evidently, they will see a healthy return.
From a global standpoint it seems to look like property prices have increased steeply in the last 10 years fueled by record low interest rates. But what happens when this trend reverses? The price of global property can hold its gains if interest rates rise, provided that the economy does, too. A lot of it will depend on local market conditions, though.