Dubai is the most profitable and expensive location in the world for Airbnb landlords, particularly for owners of properties near Burj Khalifa, a survey by UK-based landlord insurance company CIA Landlords has found.
Landlords who own properties surrounding the world’s tallest building can earn an average of £930 ($1,150) per night, or £339,450 per year, which means it can take only four months for them to break even on their investment, CIA Landlords said.
“Dubai is the most profitable location for landlords as it takes just four months for them to earn their money back after investing in a property,” CIA Landlords said in the survey, which was based on the price of an average one-bedroom, 450-square-foot apartment and divided by the average Airbnb price for one night.
“The average price to buy an apartment in the city is £112,624, meaning just 121 nights need to be sold for this cost to be earned back. However, this is only a profitable location for landlords who have a property near Burj Khalifa, as those further away rent for just £181 per night.”
The property market in the UAE, the second-biggest Arab economy, has made a strong recovery from the pandemic-driven slowdown as the country’s economy improves on the back of fiscal and monetary measures.
Pent-up demand and improved investor sentiment have also helped to drive property sales, particularly in Dubai and Abu Dhabi, amid the pickup in economic activity.
The second-most profitable location for Airbnb landlords is Hilo, in Hawaii, where it takes only 200 nights to be sold for owners to make their money back, the survey found.
“With the average cost of buying an apartment here also over half that in Dubai at £51,300, this is a safer investment option for those just beginning their Airbnb journey,” it said.
“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.”
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