Short-Term Rentals in Dubai: What Investors Should Know

Man walking up an interior staircase; black-and-white photo Holiday Home registration and building rules—the starting point before any calculations.

Quick orientation. How to set up the regime, what to check in building rules, and how returns really add up across districts.

1. Set up the short-term regime (Holiday Home)

  • In Dubai, short-term rentals operate via registering your apartment as a Holiday Home with the Dubai Economy & Tourism (DET).
  • The owner registers the unit and records guest data—essentially like a small hotel.
  • If you manage 9+ units, you’ll need a professional trade licence with the activity for Vacation/Holiday Homes.
  • Some buildings’ Owners Associations (OA/HOA) restrict short-term stays or require approval. Before placing a deposit, request the house rules / Residents Guide from the community manager.

Important. Not every building allows short-term rentals. Confirm the regime first—then run the numbers.

2. Districts: demand profile and entry ticket

Business Bay. Mix of business and leisure; occupancy stays relatively steady through the year. JVC. Family trips; pronounced seasonality (winter stronger than summer). Dubai South. Event-driven spikes around expos and trade fairs.

Typical purchase ranges and working return corridors

  • Business Bay: studios ~AED 750–850k; 1BR from ~AED 1.2m. Working net corridors seen in practice: studios 8–9%, 1BR 7–8%.
  • JVC: studios ~AED 550–650k; 1BR AED 850k–1.1m. Corridors: studios 7–9%, 1BR 6–8%.
  • Dubai South: studios ~AED 400–500k; 1BR AED 650–800k. Corridors: studios 5–8%, 1BR 4–6%.

Note: ranges come from real deals and management reports; outcomes hinge on nightly rate and occupancy.

3. One booking, full cost stack: where the money goes

  • Average Daily Rate (ADR)
  • Platform fee
  • Tourism Dirham — fixed per occupied night under Holiday Home rules
  • Management fee — often 15–25% of revenue
  • Cleaning and consumables
  • Interior wear & tear (amortisation) — working guide ~10% of gross per year

Math in one line—easy to copy: ADR − platform fee − Tourism Dirham − management (15–25%) − cleaning/consumables − amortisation (~10% of gross) = net

4. Practical case: JVC studio ~AED 600k

Owner’s target: gross ~AED 4,500/month. Year-one reality: summer ~2,800, winter ~5,200, plus a short maintenance pause. After fees/charges/management the net landed around ~6.5% vs. the hoped-for “up to 9%“. Takeaway: pricing discipline, listing quality, and response time do the heavy lifting.

5. When short-term makes sense

  • The unit is legally “clean”: Holiday Home regime confirmed and house rules checked.
  • Your break-even is modelled for rate and occupancy; you know the borderline months.
  • You can commit 2–3 hours a week: pricing, guest messages, cleaning schedule, and small fixes.

6. To-do before you buy

  1. Regime. Before any deposit, obtain house rules / Residents Guide from the OA/manager and confirm Holiday Home is permitted for that building.
  2. Income model. Build Low / Base / High scenarios for ADR and occupancy; include every item from the cost-stack above.
  3. Operations. Decide between self-management or an operator. Lock service levels (SLA) for response time, cleaning standards, and listing (photos + copy).
Key Facts
  • Regime: Holiday Home (DET), confirm building permits (OA/HOA).
  • Entry ranges: Business Bay AED 750–850k (studio), JVC 550–650k, Dubai South 400–500k.
  • Working corridors: studios 5–9%, 1BR 4–8% (by district and cases).
  • Cost-stack: ADR − platform fee − Tourism Dirham − management (15–25%) − cleaning − amortisation (~10%) = net.
  • Operations: 2–3 hours weekly (pricing/messages/cleaning/small repairs).
Glossary
  • Holiday Home — short-term rental regime (DET).
  • OA/HOA — owners association/homeowners association.
  • ADR — Average Daily Rate (nightly rate).
  • Tourism Dirham — fixed municipal charge per occupied night.
  • SLA — Service Level Agreement.

Sources (accessed: 22.09.2025)

  • DET — Register to operate Holiday Homes (registration process) — dubaidet.gov.ae. Dubai Department of Economy & Tourism
  • DET — Apply for a Holiday Home Permit (requirements, FAQ) — dubaidet.gov.ae. Dubai Department of Economy & Tourism
  • Holiday Homes FAQ (DET): “Do I need to pay 10% Dubai Municipality fees? — No …” (Holiday Homes units). hhpermits.det.gov.ae
  • Tourism Dirham for Holiday Homes: Standard AED 10, Deluxe AED 15 per bedroom/night — industry summaries. Houst
  • Airbnb fees (current model): Host ~3%, Guest ~14.1–16.5%. Airbnb
  • Airbnb single-fee (announced): host ~15.5%, guest 0% (regional rollout). Beyond Pricing

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Disclaimer. This material is for information only and does not constitute investment, legal, or tax advice. Holiday Home (DET) rules, OA/HOA requirements, platform terms (Airbnb, etc.), and DLD/RERA regulations change; all figures and examples are indicative as of 22.09.2025 and do not guarantee future returns. Before any deal, confirm: the regime’s permissibility for the specific building (house rules/OA decision); current DET/DLD/RERA requirements and fees, Tourism Dirham, and platform commissions; discuss tax implications with a qualified advisor.