As of July 2026, short-term rentals across Dubai average AED 520 per night at 62% annual occupancy — a blended RevPAR of AED 322. A typical 1-bedroom grosses around AED 105,000 per year, citywide.
Dubai STR performance at a glance
Blended estimate across professionally managed listings in all Dubai neighborhoods and bedroom counts. Individual areas vary widely — see neighborhood breakdown below and methodology.
Typical annual revenue by bedroom count
These are citywide blended figures. Premium waterfront and downtown neighborhoods post meaningfully higher revenue than this average; more affordable inland areas post lower revenue but often stronger yield relative to purchase price.
| Unit type | Gross annual revenue | Effective monthly |
|---|---|---|
| Studio | AED 68,000 | AED 5,670 |
| 1 bedroom | AED 105,000 | AED 8,750 |
| 2 bedroom | AED 160,000 | AED 13,330 |
| 3 bedroom | AED 230,000 | AED 19,170 |
These are gross figures — before management fees (typically 15–25% in Dubai), cleaning, utilities, DEWA/chiller, and the DET permit. Self-managed units usually net 60–75% of gross.
Dubai STR market by neighborhood
Dubai's short-term rental market is not one market — it's dozens of micro-markets with different guest profiles, seasonality, and price ceilings. Waterfront and downtown districts command the highest ADR and RevPAR; inland residential communities trade lower nightly rates for steadier long-stay demand and lower unit cost. We're publishing detailed, sourced data one neighborhood at a time — Dubai Marina is live now, with more shipping in the coming weeks.
What drives STR demand in Dubai
Dubai's short-term rental market is driven by a tourism base that has grown consistently for over a decade, layered on top of a large resident population of professionals on flexible or relocating contracts. International leisure travelers — heavily weighted toward Europe, Russia/CIS, and South Asia — dominate the winter high season, drawn by guaranteed sun, direct flights from most major cities, and an events calendar (Dubai Shopping Festival, GITEX, Formula 1, New Year's Eve) that fills hotels and STRs alike. GCC weekend and school-holiday travelers add a steady secondary demand layer year-round, less sensitive to season than international leisure guests.
The market is also unusually corporate for a "vacation rental" city: multinational employees on short-term assignments, business travelers avoiding hotel rates, and relocating families furnishing a first home while they house-hunt all book 7–90 night stays through the same channels as leisure guests. This corporate/relocation layer is what keeps inland, less touristic neighborhoods (JVC, Arjan, Business Bay) viable STR markets despite lower nightly rates — occupancy holds up even without a beach or marina view.
Regulation shapes the market more directly than in most cities: every unit must carry a DET (formerly DTCM) holiday home permit, which caps informal/unlicensed supply relative to demand compared to markets with looser enforcement. That, combined with a still-growing (not yet saturated) supply base in most neighborhoods outside the most mature waterfront districts, is part of why occupancy has stayed resilient even as new listings come online.
Seasonality in Dubai: month by month
Every Dubai neighborhood follows the same broad seasonal shape — a winter peak, a summer trough, and a Ramadan dip wherever it falls in the calendar (it moves ~11 days earlier each year) — though the amplitude differs by area. Citywide, blended across all neighborhoods:
| Month | ADR (AED) | Occupancy | Notes |
|---|---|---|---|
| January | 620 | 74% | Dubai Shopping Festival; peak international arrivals |
| February | 640 | 76% | Best weather citywide; strongest month of the year |
| March | 560 | 66% | Ramadan dip when it falls here; sharp Eid rebound |
| April | 520 | 63% | Spring tail holds up better inland than on the coast |
| May | 460 | 56% | Shoulder season; European leisure demand fading |
| June | 400 | 50% | Low season begins; monthly-stay demand takes over |
| July | 370 | 46% | Deep summer; GCC family and relocation stays carry occupancy |
| August | 360 | 45% | Lowest rates of the year citywide |
| September | 420 | 52% | Recovery as schools restart and heat breaks |
| October | 500 | 62% | Event season opens; GITEX lifts corporate-heavy areas most |
| November | 560 | 68% | High season returns; F1 weekend spikes select areas |
| December | 690 | 78% | Strongest month; NYE nights price at multiples of baseline |
Waterfront and downtown neighborhoods swing further above and below these citywide averages than inland residential areas, where longer average stays smooth out the seasonal curve. See each neighborhood page for area-specific seasonality once published.
Licensing: what you need to operate in Dubai
Every holiday home in Dubai — in every neighborhood, with no exceptions — must hold a permit from the Department of Economy and Tourism (DET), formerly DTCM. You can register as an individual owner-operator or list through a licensed holiday home operator. Permits are issued per unit and renewed annually, and operators must collect the Tourism Dirham fee (AED 10–15 per bedroom per occupied night, depending on classification). Unlicensed listings face fines and delisting. For the full registration process, fee schedule, and renewal steps, see our DET/DTCM holiday home license guide and the complete Dubai holiday home fee stack.
Short-term vs long-term rental in Dubai
A 1-bedroom in Dubai typically rents long-term for around AED 75,000 per year, citywide. The same unit grossing AED 105,000 on the short-term market needs to clear its extra operating costs (furnishing, bills, cleaning, management, permit) before it beats the long-term baseline — in most Dubai neighborhoods, well-run STRs do, with the added flexibility of owner use and no rent-cap exposure. The break-even point is occupancy-driven: below roughly 55–60%, long-term usually wins. See our full STR vs long-term rental yield breakdown for the math by unit size.
Common questions
Methodology & sources
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