As Dubai’s real estate sector continues to reach new heights and break global records, one segment continues to flourish—holiday homes (aka short-term rentals).
This is unsurprising given the emirate’s stunning architecture, luxurious lifestyle, top attractions, year-round sun, and high public safety.
The Great Demand Behind Holiday Homes in Dubai
The emirate’s tourism sector remains robust throughout the year (perhaps with a dip in July and August), ensuring a steady stream of visitors seeking short term rentals in Dubai.
Also, you have the continuous influx of expats relocating to Dubai, creating a consistent demand for temporary housing options, further boosting the appeal of short-term rentals.
Plus, unlike global cities like New York, London, Singapore, or Hong Kong, Dubai delivers exceptional value for money and quality in the holiday homes market.
Besides, investing in a holiday home in Dubai, which is considered a short-term rental, allows you to tap into the strong demand while maximising your investment potential.
But the question remains: are holiday homes in Dubai as profitable as many would suggest? It’s a slightly complicated answer, so let’s break it down.
1. The Huge Appeal of Flexibility
So many landlords still love short-term rentals, and what makes this market so strong overall is the flexibility they give to owners.
Unlike the commitments of long-term leases, short-term rental agreements empower property owners to maintain control over their investments. Landlords can use their property themselves or host family and friends without the constraints of a fixed tenancy agreement.
Moreover, the property is often managed throughout the year, sparing owners the day-to-day responsibilities of maintenance and guest services.
2. Great ROI and more Freedom
While the profit margins may not be as expansive as in years past, the sheer flexibility and ongoing demand make short-term rentals an attractive proposition for landlords.
In addition, It is also worth noting that short-term rental properties in tourist hotspots often yield around 10-20% more revenue than traditional long-term leases. Again, recent trends show a slight decline in this gap due to the exceptional performance of the long-term rental market—but it’s still impressive.
In the future, we’ll likely see a balanced existence between the short-term and long-term rental segments, each catering to distinct city needs and preferences.
The key for landlords is to understand the sector overall and make decisions based on their investment strategies and individual needs.
3. Strong Appreciation Potential
Dubai real estate generally has a history of appreciating over time, with property values consistently rising.
Given the demand for holiday homes here, coupled with their location and condition, they can potentially appreciate at even higher rates, resulting in a greater potential resale value.
4. The Impact of the New Airport
The new Al Maktoum airport terminal is a recent development that will seriously boost the Dubai holiday rental market in the future.
Set to replace all operations at Dubai International Airport (DXB), the spectacular terminal will be five times bigger and have a capacity of 260 million passengers annually.
Moreover, with over 400 aircraft gates, Al Maktoum International will be well-equipped to handle many flights simultaneously.
Areas with High Demand for Holiday Homes in Dubai
Regarding the best locations for holiday rentals, let’s see which are the most hot spots in Dubai.
1. Dubai Marina
Situated at the heart of ‘New Dubai’, this popular area boasts a breathtaking waterfront setting packed with glamourous yachts.
Here, a landscaped promenade surrounds the artificial canal, creating a picturesque environment and offering direct access to many attractions like JBR and the Ain Dubai.
In addition, the Dubai Marina skyline features prominent skyscrapers with hotel apartments, amenities, and entertainment options.
The area also has excellent connectivity via buses, the Dubai Tram, and the Dubai Metro, ensuring convenience for its residents.
2. Downtown Dubai
Another hot spot is vibrant Downtown Dubai, which remains a sought-after area for holiday rentals thanks to its central city location and prestigious landmarks.
Moreover, this iconic neighbourhood is home to globally renowned attractions, including Dubai Mall and the soaring Burj Khalifa. Tourists can truly experience Dubai’s ‘wow’ factor here, surrounded by architectural marvels and luxury shopping.
3. Palm Jumeirah
No Dubai list is complete without mentioning the world-famous Palm Jumeirah. It’s a man-made palm-shaped island offering luxurious beachfront properties with stunning views, private beaches, and upscale amenities for holidaymakers seeking opulence.
While prices might be higher here for investors, the potential for strong rental income and capital appreciation makes Palm Jumeirah an enticing investment.
4. Jumeirah Beach Residence (JBR)
Another great area for holiday rentals is Jumeirah Beach Residence (JBR). This bustling beachfront community enjoys a lively atmosphere with endless restaurants, shops, and luxury hotels.
A wide range of stylish holiday apartments are available, ensuring you an upscale lifestyle with plenty of things to do right on the doorstep.
Emma Campbell
Director — Short Term Leasing at haus&haus
Moving her experience over from London in the hospitality industry to Dubai, Emma has now been in the Short Term Rental industry since it was legalized in 2014.
Having had the opportunity to watch the market excel in this area and guide property owners in the right way of transforming their unit into a holiday home, her professional advice and friendly nature means she cements long term relationships. The key to her success has been to deliver outstanding customer services whilst managing and sustaining her landlords expectations.
