Dubai Real Estate market is witnessing a significant boom in short-term rentals, with demand soaring by 30% compared to the previous year. This trend is reshaping the real estate landscape, offering substantial returns for property investors and providing visitors with flexible and attractive accommodation options.
Myles Rothwell, Managing Director at Edwards and Towers, remarked, “Over the past year, we have seen short-term rentals in Dubai surge, with a 30 per cent increase in bookings due to rising tourism and a demand for flexible living options.” This surge has resulted in investor returns up to 20% higher than those from traditional leases, which typically offer a steady annual yield of 7%.
Cherif Sleiman, Chief Revenue Officer at Property Finder, emphasized the importance of careful research when choosing short-term rentals. “Our recent white paper, ‘Opening Doors: Insights, Trends and Forecasts for Real Estate in the UAE,’ reveals that most short-term renters, especially families, prefer lifestyle-oriented communities with vibrant amenities and excellent connectivity. This growth in short-term rentals is an exciting development in the real estate sector, and we anticipate its continued success,” he said.
As short-term rentals gain popularity, certain areas in Dubai have emerged as prime locations for such investments. Jumeirah Lakes Towers benefits from its proximity to Dubai Marina and metro access, while Jumeirah Village Circle (JVC) is drawing attention due to its ongoing development and comparatively lower prices.
Anthony Joseph Abou Jaoude, Founder and CEO of Primestay, highlighted several sought-after areas for short-term rentals, including Business Bay, Arjan, Jumeirah Village Circle, Downtown Dubai, Palm Jumeirah, and DAMAC Hills. These locations offer a mix of world-class amenities and trendy communities, appealing to visitors seeking unique experiences and convenient access to the city’s attractions.
“In recent years, Dubai has become a luxury travel destination, with visitors willing to pay more for high-end accommodations. A significant trend is that families and groups prefer larger holiday homes over multiple hotel rooms, driving up the demand for vacation villas and spacious apartments for short-term rentals,” noted Anthony. “Dubai’s vibrant tourism scene ensures strong demand for short-term rentals, offering landlords and investors a steady and profitable income stream.”
As the cooler months approach, Dubai anticipates a surge in visitors with varied preferences. Investors keen on maximizing property value in this segment must stay attuned to these trends.
Nina Klishevich, General Manager at Blueground, observed, “Dubai’s short-term rental market is experiencing rapid growth, with new operators entering the scene. However, the market remains fragmented, with the top five companies making up less than 10 per cent of the offerings. Over the next one-two years, I anticipate a wave of consolidation, with some operators scaling up to manage 100-plus units, while others may exit the market. We can also expect tighter government regulations to ensure compliance with licensing and guidelines. Additionally, technological advancements like AI-driven tools and smart home features will enhance both guest experiences and operational efficiency. Finally, as remote work becomes more prevalent, we foresee a growing demand from digital nomads seeking flexible, short-term accommodations.”
Investors must focus on key areas, including regulatory compliance, technology integration, and sustainability, to ensure their short-term rental offerings meet both regulatory and consumer expectations.