What you need to know about Dubai's booming holiday rental market

Tourism in Dubai is rocketing, offering a fantastic opportunity for landlords and investors alike in short term rentals. With the growing demand for vacation rentals in Dubai, there's never been a better time to get involved. In 2024, Dubai saw a remarkable 9.31 million international visitors in the first half of the year, marking a 9% increase from 2023. This surge is expected to continue into 2025, further driving up demand for vacation home rentals in Dubai. This boom has led to a significant rise in short term rental properties across the city, creating a lucrative market for property owners.

As a result, Dubai's short-term rental market has seen an uptick, with active rentals increasing by 58% compared to last year. Renting out homes to holidaymakers offers landlords up to 30% more profit than long-term leasing, depending on the area. Another advantage of short term property rental in Dubai is the flexibility it offers owners, allowing them to use their homes between tenants and adjust prices based on market conditions and seasonal trends.

However, as the market evolves, there are several important new real estate initiatives and factors property owners need to consider. In this article, we’ll explore key aspects of Dubai’s booming short term rental market and how you can take advantage of this exciting opportunity.

New QR code initiative for short term property rentals Dubai

The DET recently launched a new initiative for Dubai vacation rental homes. Dubai landlords will now be required to show a QR code on the main entrances of their short term rental properties.

Guests can scan the code and access essential information about the operator of the holiday home and contact details of the DET. This will also facilitate inspections conducted by the Dubai Corporation for Consumer Protection and Fair Trade.

Rent Now Pay Later: changing the short term rental market in Dubai

Could this be the end of rental cheques? Digital real estate investment management platform Keyper announced a Rent Now Pay Later (RNPL) service, launching in July 2023. Dubai tenants will be able to pay their annual rent in monthly instalments using a credit card, an initiative that aims to bring more financial ease to residents.

This may mean a decrease in demand for the short term rental market, as one of the main reasons why relocating expats choose holiday homes is because of the payment flexibility.

That being said, the RNPL scheme will only be available for UAE residents – so holidaymakers, travellers and those waiting for their visa will likely stick to a holiday stay instead.

Understanding seasonality in the short term rental market Dubai

This might not be news to some, but it's important to mention the impact of seasons in Dubai's short term rental market. There's usually less tenant demand for vacation rental homes in Dubai during the summer months, but that doesn't mean the sector goes quiet.

"Our low season is from May to August. However, we still see things picking up in August due to families relocating before the kids go back to school," said Emma Campbell, Short Term Leasing Director at haus & haus.

"We also have small peaks in the summer when travellers from local GCC countries flock to Dubai for national holidays. Once winter comes, Christmas and New Year are always the busiest times," she added.

The impact of off-plan developments on vacation rentals Dubai

With new developments launching almost every week, Dubai's off plan projects continue to boost the emirate's real estate market. "With the ongoing construction of new buildings and properties, clients have more options for their stay which pushes the competition even further," Campbell notes. "They will generally want to be in these new projects with nice facilities, and this certainly reflects in the short term rental market".

The undergoing constructions include the giant Palm Jebel Ali and Al Habtoor Tower, the world's largest residential building.

FAQs About Short Term Rentals in Dubai and Vacation Rentals Dubai

What are short term rentals in Dubai?

Short term rentals Dubai refer to properties that are rented out for brief periods, typically less than six months, offering flexibility for travellers and tourists. This includes vacation rentals Dubai and Dubai vacation rental homes.

Are short term rentals in Dubai profitable?

Yes, rental properties in Dubai UAE, especially short term rental market properties, can be highly profitable due to the high demand from tourists and business visitors. Landlords can earn up to 30% more in profit than with long-term rentals.

Do I need a license to rent my property short term in Dubai?

Yes, landlords offering short term property rental Dubai must register their properties with the Department of Economy and Tourism (DET) and adhere to specific regulations, including the display of a QR code for guest access.

Are there any restrictions on short term rentals in Dubai?

Yes, regulations for short term rentals Dubai include requirements for landlords to provide guests with necessary information via QR codes, ensure their properties are up to code, and follow DET guidelines for inspections and consumer protection.

What is the impact of seasonality on the short term rental market in Dubai?

Short term rental properties in Dubai tend to experience lower demand during the summer months, but high seasons like Christmas, New Year, and major events like COP28 lead to increased bookings. Understanding the seasonality trends is essential for maximizing profit.

How haus & haus can help with short term rentals Dubai and vacation rentals Dubai

As Dubai's tourism sector continues to thrive, the short term rental market will likely remain a strong investment opportunity for property owners. Whether you're looking for vacation rentals Dubai or exploring options for vacation home rentals Dubai, it's important to stay informed about the latest regulations and market trends.

For assistance with short term leasing or to discuss your investment options, contact us at haus & haus or learn more about our short term leasing services here.