Fifa Qatar World Cup: Dubai rents to increase; short-term rental market to grow

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The short-term rental market is expected to prosper due to the Fifa World Cup being held in Qatar this November.

The sporting event is set to start on November 20, and is the first-ever global football event that’s being held in the Arab world. The month-long event is expected to attract fans from all over the world to Dubai, which is geographically close to Qatar.

According to Zoom Property Insights, Dubai can benefit from both its proximity to Qatar and the wide availability of short-term rentals.

As it’s the first-ever global football event that’s being held in the Arab world, people will be drawn from the Middle East and football fans from across the globe will pour in to witness the speculator games during the one-month-long event.

Ata Shobeiry, CEO at Zoom Property, says, “Many real estate agencies and short-term rentals have reported advanced bookings for November and December. However, the real impact of this upcoming mega football event will be evident in October, a month prior to the event. It will give the already-growing Dubai rental market a major boost”.

Popular Dubai neighbourhoods have seen an increase in rents during the first half of the year. Rents for affordable apartments have increased by 21 per cent, while those for luxury apartments have increased by 43 per cent. Villas too have seen significant increase in rental costs. Due to the Fifa World Cup, these rents are expected to increase even further in the second half of the year.

Another trend experts note is the increase in demand for short-term rentals. This is because many hotels and resorts in Dubai are already pre-booked, and visitors need to find alternative (and more affordable) options. Many landlords are responding to this demand by switching from 1-year rentals to short-term rentals.

Zoom Property Insights reports that vacation rentals recorded a rise of around 65 per cent. A further increase is expected in this case as well.

“Apart from the real estate, the benefits of the upcoming FIFA world cup will extend to tourism and hospitality sectors as well. This will eventually benefit the economy on the whole,” Shobeiry said.