UAE Mainland Company Formation

How to Start a Holiday Home in Dubai

Vacation Homes in Dubai

Tourism is a central pillar of Dubai’s economic growth and diversification. By the year 2020, Dubai is expected to welcome 20 million visitors per year. (Source: DTCM). It has become the ultimate hub for tourists and business owners. The continued growth in tourism has also brought in many options to provide accommodation facility to visitors which include hotels, hotel apartments and vacation home rentals. The highest concentrations of holiday homes are currently in Palm Jumeirah, Jumeirah Beach, and Downtown Dubai.

Holiday Homes (Vacation Home Rentals) Description

Decree No. 41 of 2013 ‘Regulating the Activity of Leasing out Holiday Homes in the Emirate of Dubai’ provides a definition for the term ‘holiday homes’. Holiday homes are furnished real property units leased out by a license holder regularly and on an ongoing basis for the purpose of further subletting them to guests. These guests are natural persons who intend on using the holiday homes for overnight accommodation.

Holiday homes may not seem as easy as exchanging homes in the movie ‘The Holiday’ as there are licensing and government approvals required.

Main Licensing and Regulatory Bodies

  1. Department of Economic Development (DED)
  2. Department of Toursim and Commercial Marketing (DTCM)

Major points to be considered in setting up a holiday home:

  1. The license holder should be the manager of the units. The units can be located in different locations, owned by different owners and each unit must be separately classified as a holiday home under the Decree
  2. A minimum of 20 units (villas or apartments (or a combination of them) is required.
  3. The license holder is allowed to commence its operation prior to the classification of the holiday homes.
  4. Services provided by the license holder are generally limited to the rental of the units to the guests, and provision of a contact telephone number for the guest in the event of an emergency, problem or breakdown of amenities within the unit.
  5. Holiday home rentals will be allowed on a daily, weekly and monthly basis.
  6. Licensees will not be allowed to rent partial properties, i.e. split a property into separate rooms or beds.
  7. The license holder will have to demonstrate experience in the hospitality sector
  8. Each licensed property will have to display an official certificate of registration by the DTCM within the property.
  9. The DTCM will register, monitor and inspect holiday homes and hotel apartments to comply with set standards

For more information on how to start a Vacation Home Rental, feel free to drop a message.

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