Curious about the performance of short-term rentals in Dubai, United Arab Emirates? Over the last year, the average occupancy rate was 68% with an ADR (Average Daily Rate) of 159€. Hosts earned on average 2800€ per month.

90-day occupancy forecast for Dubai so you can update rates and stay ahead of competitors.
Key metrics to optimize your pricing strategy
Avg. Monthly Revenue
2800€
$2548 USD
YoY Revenue Change
-28%
vs. previous year
Occupancy Rate
68%
~20 days/month
Average Daily Rate
159€
$145 USD
Seasonality Index
94%
demand variation
Best Months
November, December
peak season
Worst Months
May, April
low season
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Over the analysis period 2025-06 to 2026-05, Dubai posts 68% average occupancy with an ADR of 159 euros and around 2,800 euros in monthly revenue across roughly 245 booked nights a year. Against the only other measured UAE market, Abu Dhabi (60% occupancy, 125 euro ADR), Dubai runs about 8 points above the national occupancy average of 64% and well above the 142 euro country ADR average, ranking first nationally on both occupancy and nightly rate.
The figure to read carefully is the -28% revenue year on year. Despite record city-wide tourism, private-rental returns fell sharply, a classic signal of supply outpacing demand as new holiday-home licences and towers flood the market and compress rates. The 94% seasonality index confirms how concentrated earnings are in the November-December peak, so the headline averages mask a steep winter-versus-summer gap.
These figures reflect real-time demand in Dubai, helping you plan and price strategically.
📌 Historical trends reveal seasonal highs – plan accordingly.
Dubai is one of the world's most concentrated short-term rental markets, fed by a record 19.59 million international overnight visitors in 2025 (a third consecutive record year, up 5% year on year). Demand is unusually diversified by source market: Western Europe leads at roughly 21%, followed by the CIS and Eastern Europe and South Asia at about 15% each, with the GCC and wider MENA adding a combined 26%. That mix blends winter sun-seekers, shopping and event tourists, Gulf weekend traffic and long-haul business travellers connecting through Dubai International.
For Airbnb operators this means steady year-round bookings rather than a single tourist profile. Holiday-home guests cluster around the beach-and-skyline corridor (Marina, JBR, Downtown, Palm Jumeirah) and increasingly Business Bay, drawn by leisure attractions, duty-free retail, a dense events calendar and a visa regime that makes Dubai easy to reach. The flip side is intense supply: hotels alone hold over 154,000 rooms running at 80%+ occupancy, so private rentals compete hard on location and quality.
Dubai's calendar is sharply split by climate. Peak season runs November through March, when daytime temperatures sit around 20-25C and beaches, desert trips and al-fresco dining all work; the API shows best months of November and December. The Dubai Shopping Festival (5 December 2025 to 11 January 2026) and a packed December events run pushed the city past 2 million visitors in a single month for the first time, and the Dubai Marathon and food festivals extend demand through January to March.
The low season is the summer: April and May are already softening (the API's weakest months), and June to September bring 40C+ heat that pushes occupancy and rates down sharply. With a seasonality index of 94%, Dubai swings hard between the two halves of the year, so operators should plan winter premium pricing and summer minimum-stay or long-let strategies to fill the off-months.
The waterfront corridor drives most holiday-home demand. Dubai Marina and JBR (Jumeirah Beach Residence) are the obvious short-term-rental cores: beach, promenade dining, nightlife and water sports make them easy to fill at strong nightly rates, especially for one- and two-bedroom apartments. Palm Jumeirah commands the highest ADRs but suits premium, lower-turnover stays. Downtown Dubai, anchored by Burj Khalifa and The Dubai Mall, attracts first-time visitors who pay for the iconic location.
Business Bay, just inland from Downtown, offers newer towers and slightly lower rates, capturing business travellers and value-conscious tourists. Each area carries different building-level rules: many developments restrict or ban short-let activity, so a unit's licensability matters as much as its postcode. Operators should verify both location demand and whether the specific tower permits holiday-home use before committing.
Short-term letting in Dubai is fully regulated and actively enforced. Any property rented for stays under one year must hold a valid Holiday Home permit issued by the Department of Economy and Tourism (DET), which absorbed the former DTCM. There are two routes: an Operator licence for companies or individuals managing units on behalf of owners, and an individual owner permit for self-managing a single property.
The permit covers every channel, Airbnb, Booking.com, Vrbo and direct bookings, and requires annual renewal, with fees roughly AED 1,500-3,000 depending on classification plus a Tourism Dirham of around AED 10-15 per room per night collected from guests. Operating unlicensed is illegal and penalised from about AED 10,000 upward, with authorities auditing OTA listings and inspecting buildings. Owners must also confirm their building or developer permits short-let use before applying.
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* Calculations based on 30 days/month. Actual results may vary depending on market, season, property type, and implemented strategy.
Dubai averages about 68% occupancy over the 2025-06 to 2026-05 analysis period, roughly 245 booked nights a year. That is around 8 points above the UAE national average of 64% and the highest of the country's measured markets, ahead of Abu Dhabi at 60%, with an average daily rate near 159 euros.
The peak runs November through March, when temperatures sit around 20-25C; the strongest months in the data are November and December, lifted by the Dubai Shopping Festival (early December to mid-January) and a dense events calendar. Summer (June-September) brings 40C+ heat and the weakest demand, so winter pricing carries the year.
Yes. Every stay under one year requires a Holiday Home permit from the Department of Economy and Tourism (DET, formerly DTCM), either as an operator or individual owner. It renews annually, costs roughly AED 1,500-3,000 plus a per-night Tourism Dirham, and operating unlicensed is illegal with fines from about AED 10,000.
The waterfront corridor performs best: Dubai Marina and JBR for beach, dining and nightlife, Downtown Dubai for the Burj Khalifa and Dubai Mall location, and Palm Jumeirah for premium rates. Business Bay offers newer, lower-priced stock for business travellers. Always confirm the specific building permits holiday-home use before buying or letting.