Dubai now ranks among the world’s five best cities to buy holiday homes. A new study by Australia’s comparison platform Comparethemarket.com.au ranked Dubai at No. 4 while Abu Dhabi is ranked No. 3. Italy’s Venice tops the list, followed by Paphos (Cyprus) at No. 2 and Funchal (Portugal) at No. 5.

The report ranked the world’s top 50 cities across several parameters, including:

• Average property prices
• Monthly cost of living for a family of four
• Crime index score
• Number of restaurants per 10,000 people
• Things to do per 10,000 people
• Average temperature and rainfall.

The report says holiday home prices in Abu Dhabi average $2,836 per square metre. They are marginally higher in Dubai ($2,877 per square metre). Compared with the other cities on the list, prices in the UAE’s cities are in the median range (No. 26 and 27 among the 50 cities ranked).

The prices in the UAE are lower than what holiday homes cost in many other popular cities, including London ($12,333 per sq m), Venice ($4,930),  Jerusalem ($7,792), Los Angeles (7,293), San Francisco ($12,210), and New York City ($11,875).

Dubai and Abu Dhabi are known for the safety and quality of life they offer as well as for their civic amenities and robust infrastructure

Advantage UAE

Dubai and Abu Dhabi are known for the safety and quality of life they offer as well as for their civic amenities and robust infrastructure. Abu Dhabi tops the listing on safety (crime index score). “Feeling comfortable and safe in your home away from home is massively important, and Abu Dhabi scored the best when it came to low crime levels,” the report states.

“Of course, no city is completely free of crime, but as a relatively affluent place, you rarely have to worry about safety in Abu Dhabi,” it highlights.

Dubai ranks No. 4 on the safety parameter while both Dubai and Abu Dhabi rank a joint No. 5 for the average temperature (27.6 degrees Celsius). The report puts the average monthly cost of living for a family of four in Dubai at $3,191, more affordable than the top-ranked Venice ($3,691 per month).

An earlier report highlighted why Dubai is a magnet for millionaires, with over 2,000 new high net worth individuals moving to the city over the six months between December 2020 and June 2021.

Holiday Homes: A booming market

The emirate’s holiday homes market has over 10,766 active listings out of a total of about 20,100 properties registered on Airbnb.

The market accounts for 2 per cent of Dubai’s total households, the highest proportion of other key global hub cities. In 2019, Dubai welcomed a whopping 16 million visitors from across the world.

The average rental return in Dubai is 7-8 per cent while holiday homes offer up to 25 per cent. The total number of listings has increased substantially in recent years.

According to the Airbnb catalogue, out of the 11,000 listings, around 6,500 were independent homes/apartments while more than 3,000 were private rooms. Shared rooms made up the rest of it. The regulatory framework in Dubai, introduced in 2013, provides the essential regulations for the short-term rental segment.