The UAE housing market is seeing mass bookings being canceled
AirDNA’s latest data from February 28 shows 8,450 cancellations per day versus an average of ~3100 cancellations on other days of the month. The reservation abandonment rate rose to 43.8%, the February average is 14.5%.
At the same time, most of the cancellations were for trips scheduled in March.
The main reason was aviation disruptions: people simply did not make it to their rented accommodation. The escalation of the conflict led to the partial closure of airspace in the UAE and disruptions in the work of the region’s two largest international hubs.
A number of flights were canceled due to airport closures: major airlines in the region, including Emirates and Etihad Airways, suspended scheduled flights and worked mainly to bring passengers already in the country back home.
The UAE’s tourism sector depends on international flights and vacationers. The rise in cancellations is not just a problem for individual domestic rentals, but part of a wider crisis picture in tourism across the region, with analysts warning of declining tourist traffic and possible economic losses for the tourism industry.
In response to the situation, authorities and businesses are taking steps to help. Some companies have offered free accommodation for stranded travelers, and hotels in Dubai have been instructed not to evict guests whose flights have been canceled.
According to the latest reports, Dubai airport has resumed operations, but not yet at full capacity. The priority is to dispatch stranded passengers.
