Up to Dh100,000 per night? UAE short-term rental demand surges; here's why

Competitive Rates and High Returns Drive Market Growth

Short-term rental demand in the UAE has surged, driven by competitive rates and a growing number of property owners opting to list their homes on new platforms. These platforms have made it easier for landlords, especially in prime locations like Downtown Dubai and Burj Khalifa, to switch from long-term to short-term rentals due to higher returns.

Industry experts point out that the demand is fueled by digital nomads and visitors from Europe and Asia. According to Khaleej Times, short-term rental rates have remained stable in 2024, with a slight uptick due to the influx of new listings and competition from hotels. While rates in Dubai average around Dh500 per night, they remain higher than global averages.

Tourism Boost and Staycation Trend Fuel UAE Short-Term Rental Market

Government initiatives promoting tourism, such as visa reforms and new attractions, have also bolstered interest in short-term stays. The trend of staycations among UAE residents has further contributed to this growth. According to Frank Porter, prices for short-term rentals in the UAE range from Dh200 to over Dh100,000 per night, with approximately 30,000 to 50,000 listings available.

Top Short-Term Rental Hotspots 

Popular areas for short-term rentals include Dubai Marina, Jumeirah Beach Residence (JBR), Palm Jumeirah, and Downtown Dubai. However, areas like Jumeirah Lake Towers (JLT) and Jumeirah Village Circle (JVC) also offer better returns on investment, as they attract different types of clients, contributing to their profitability.