Dubai-based Samana Group has launched a new entity which will let homeowners and end-users of its real estate unit Samana Developers, to rent apartments on a short-term basis, boosting investor returns.
In its initial phase, Samana Holidays will target 500 units and turn them into holiday homes (serviced apartments) for short-term rentals to permit tourists, visitors, holiday-makers and layovers for fans of FIFA World Cup, said a statement from the company.
These units are expected to generate AED38 million ($10.3 million) in revenue over the next seven months - by Q2 2023. It is therefore a new benefit to Samana Developers’ buyers and end-users, it stated.
CEO Imran Farooq said: "The resort-style designs and features at Samana Developers’ projects are well received by buyers, especially for those who plan to rent their units to tourists. Converting units from long-term to short-term is a perfect proposition for buyers as well as for tourists."
"The serviced apartments at Samana Holidays will substantially reduce the per-night rate as compared to the rate at hotels in Dubaim," he added.
As part of its growth strategy, Samana Holidays has signed a long-term contract with Airbnb - an online marketplace for short-term homestays.
"Our short-term rental option will boost the rental income of home owners from 8% to 15%, a straightforward 7% increase in rental returns as soon as their apartment is booked on Airbnb," stated Farooq.
According to him, the documentation process will be simple and can completed in just 10 minutes.
"The homeowners have to sign a single document with Samana Holidays and in the next 5 days, their apartments will be transformed into fully furnished units, and will go up live on Airbnb giving tourists a larger variety of choice," he stated.
The company takes care of the rest of the process such as the furnishing, finding customers, finalizing rental deals, bringing tenants on board and the apartment maintenance, he added.
The projects offer resort style living being perfect for Airbnb with leisure decks, common swimming pools for adults and kids, private pools, special water features, a yoga zone, open cinema, a juice bar, green areas, indoor and outdoor gyms, a health club with steam and sauna facilities and 24-hour security-TradeArabia News Service