According to the industry executives, Holiday Homes have gained a growing popularity among small investors and private developers. This is because these properties offer higher returns in comparison to other properties in the UAE.
In Dubai, the average rental return is about 7-8 percent. However, Holiday Homes suggest up to 25 percent more rent to the investors. This is the reason why they are among the most desirable properties to investors.
In fact, these properties are as the alternatives to hotel apartments as well as established hotels. In this regard, Abu Dhabi also will launch new laws for holiday homes.
According to the Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi), new rules will be set in order to ensure that all properties will be available to international tourists. These homes will be available on online platforms. In addition, they are all licensed and meet service standards of Abu Dhabi.
It should be said that the same tourism fee for holiday homes will be 6 percent just like the hotels in the UAE.
For each unit to be licensed, the standards are required to be met and maintained. In fact, the laws will be set to address 4 main challenges. The impact of unlicensed units on the price of hotel rooms, units currently operating without a license; residential community concerns as well as the challenge of housing availability.
As per the decision from the Executive Council of the Emirate of Abu Dhabi, the new regulations will be set to ensure governance of business activity through related fines on unlicensed units. In addition, the fines will be set on units that operate without meeting minimum service guidelines or quality standards.
Saood Al Hosani, acting undersecretary of DCT Abu Dhabi, has said that this action will provide additional support to the sustainable ecosystem in the tourism industry of the UAE. As well as this, it will help increase economic diversification in Abu Dhabi. In addition, the decision of The Executive Council of the Emirate of Abu Dhabi will ensure equal opportunities and fair competition between different tourism establishments in Abu Dhabi. This will be through regulations and laws that enable the provision of stellar services to visitors of the country.
Al Hosani added that the laws would enable us to have all these units in one system, while providing a database for all licensed holiday homes in Abu Dhabi.
According to him, this initiative can result in attracting a diverse segment of tourists to Abu Dhabi. Besides, it will enable the investors of unique and attractive accommodation offerings market their houses.
The UAE has been always known as a country with the best laws in any field. The laws in the UAE are changed or set by the government to ensure the quality of life for the residents. Besides, the laws are to ensure the progress of the country.