dubai’s holiday home market · islands dubai marina media city jumeirah beach residence al sufouh...
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DUBAI’S HOLIDAY HOME MARKETSeptember 2019
HOW THE PEER-TO-PEER SHARING ECONOMY IS SHAPING THE HOSPITALITY SECTOR
To date, tens of millions of travelers have chosen Airbnb to experience cities not as
tourists, but as locals.
74%of Airbnb are
properties outside the main hotel
districts
91%of travelers want to “live like a local” 79%
of travelers want to explore a specific neighbourhood
81%of hosts share the home in
which they live
DUBAI’S HOLIDAY HOME MARKET
Airbnb©
Airbnb©
To date, tens of millions of travelers have chosen Airbnb to experience cities not as
tourists, but as locals.
74%of Airbnb are
properties outside the main hotel
districts
91%of travelers want to “live like a local” 79%
of travelers want to explore a specific neighbourhood
81%of hosts share the home in
which they live
DUBAI’S HOLIDAY HOME MARKET
JUMEIRAHISLANDS
DUBAI MARINA
MEDIA CITY
JUMEIRAH BEACHRESIDENCE
AL SUFOUH
PALM JUMEIRAH
AL BARSHA
AL QUOZINDUSTRIAL
AL QUOZ
NAD AL SHEBA 1
AL BARARI
ARABIAN RANCHES
DUBAI SPORTSCITY
REMRAAM
UMM NAHAD
MOTOR CITY
CITY OF ARABIA
THE VILLA
DUBAI SILICONOASIS
ACADEMICCITY
INTERNATIONALCITY
AL WARQA 1
JUMEIRAHVILLAGE CIRCLE
EMIRATES HILLS JEBEL ALIVILLAGE
DUBAI INVESTMENT
PARK
JUMEIRAH
WORLD TRADE CENTRE
BUR DUBAI
DEIRA
AL KARAMA
DUBAI INTERNATIONAL
AIRPORT
UMM RAMOOL
RAS AL KHOR
RAS AL KHOR INDUSTRIAL
AREANAD AL SHEBA
DUBAI FESTIVALCITY
AL RASHIDIYA
MIRDIF
AL TWAR
GARHOUD
JUMEIRAH LAKES TOWERS
Supply (2016)
Highest concentration
in hotel districts
DUBAI’S HOLIDAY HOME MARKET
JUMEIRAHISLANDS
DUBAI MARINA
MEDIA CITY
JUMEIRAH BEACHRESIDENCE
AL SUFOUH
PALM JUMEIRAH
AL BARSHA
AL QUOZINDUSTRIAL
AL QUOZ
NAD AL SHEBA 1
AL BARARI
ARABIAN RANCHES
DUBAI SPORTSCITY
REMRAAM
UMM NAHAD
MOTOR CITY
CITY OF ARABIA
THE VILLA
DUBAI SILICONOASIS
ACADEMICCITY
INTERNATIONALCITY
AL WARQA 1
JUMEIRAHVILLAGE CIRCLE
EMIRATES HILLS JEBEL ALIVILLAGE
DUBAI INVESTMENT
PARK
JUMEIRAH
WORLD TRADE CENTRE
BUR DUBAI
DEIRA
AL KARAMA
DUBAI INTERNATIONAL
AIRPORT
UMM RAMOOL
RAS AL KHOR
RAS AL KHOR INDUSTRIAL
AREANAD AL SHEBA
DUBAI FESTIVALCITY
AL RASHIDIYA
MIRDIF
AL TWAR
GARHOUD
JUMEIRAH LAKES TOWERS
Higher proportion of individuals
seeking daily contracts
Higher proportion of individuals
seeking monthly contracts
DUBAI’S HOLIDAY HOME MARKET
Supply (2016)
Spreading to Secondary
Areas
DUBAI’S HOLIDAY HOME MARKET
Supply (2018)
DUBAI’S HOLIDAY HOME MARKET
ADR Heat Map
DUBAI’S HOLIDAY HOME MARKETDUBAI’S HOLIDAY HOME MARKET
Occupancy Heat Map
13 %of total hotel supply
1 %of total hotel supply
DUBAI’S HOLIDAY HOME MARKET
The Evolution of Holiday Home Supply
DUBAI’S HOLIDAY HOME MARKET
SINGAPORE0.4%
12%
HONG KONG0.1%
4%
LONDON1%
40%
DUBAI2%
13%
PARIS1%
34%
Airbnb % Residential
Airbnb % Hotel Rooms
Regional Supply
NEW YORK1%
32%
SYDNEY1%
29%
DUBAI’S HOLIDAY HOME MARKET
DUBAI’S HOLIDAY HOME MARKET
Private Room
Shared Room
Entire Apartment
Composition of Supply
DUBAI’S HOLIDAY HOME MARKETDUBAI’S HOLIDAY HOME MARKET
Kitchen WiFi Washer/Dryer Pool Gym Free Parking Instant Booking Hair Dryer
95%
95%
90%
82%
73%
72%
55%
51%
DUBAI’S HOLIDAY HOME MARKET
Common Facilities
359…average response time
DUBAI’S HOLIDAY HOME MARKET
Point of Differential
Source: AirDNA, STR Global, Knight Frank Research
Performance convergence during periods of low demand
Large differential between hotel and holiday home RevPAR
Larger holiday homes starting to outperform
hotel market performance
Hotels always outperform studios and 1 BRs
DUBAI’S HOLIDAY HOME MARKET
RevPAR Performance
More affordable hotels
Leisure oriented hotels
Hotels with fewer facilities
Unbranded hotels
DUBAI’S HOLIDAY HOME MARKET
Who is Most Severely Impacted
Main hotel districts such as Downtown, Palm Jumeirah, Dubai Marina and JBR
Serviced apartment sector targeting long stay guests downtown
Highly seasonal submarkets that cannot yield as effectively during peak periods
All hotels during “low” season
DUBAI’S HOLIDAY HOME MARKET
Changing Landscape
Adlène Djekiref, MEA Hotels & Serviced
Apartments Regional Manager , AirBnb
Reem Al Khatib, Managing Director,
GuestReady
Paul Mallee, Co-Founder and
Managing Director, Maison Privee
DUBAI’S HOLIDAY HOME MARKET
Expert Opinions…
THANK YOU