Holiday Homes in Dubai: What Your Apartment Could Earn as a Short Let

Thinking about buying a Dubai flat to rent out by the night? The numbers now back you up. 

A holiday home in Dubai is a flat, apartment or villa, licensed to take guests for short stays with a permit from the Department of Economy and Tourism. 

In the 12 months to August 2026, AirDNA counted 18,902 of them in Dubai. They were fully booked 69% of the time, charged Dh654 a night on average, and took Dh136,600 each across the year. 

On a Dh1.5 million one-bed, that's about 9.1% of the purchase price coming in, against 5.69% average yields on a long let in Business Bay. And the guests keep arriving: Dubai had 19.59 million overnight visitors in 2025, with hotels 80.7% full at Dh579 a night. 

This article will explain what a short let earns, what to budget for, and how to pick a flat that performs.

Key takeaways

• Dubai short-let homes took Dh136,600 each in the 12 months to August 2026, according to AirDNA.

• They charged Dh654 a night on average and were fully booked 69% of the time.

• That's roughly 9.1% of price coming in on a Dh1.5 million flat, against 5.69% average yields on a Business Bay long let.

• Dubai had 19.59 million overnight visitors in 2025, up 5% on 2024.

• Hotels were 80.7% full at Dh579 a night, so short lets are pricing above hotel rates.

• You'll need a holiday home permit from Dubai's Department of Economy and Tourism, and a licensed operator can run the whole thing for you.

What counts as a holiday home in Dubai?

Any home rented to guests for short stays under a permit from Dubai's Department of Economy and Tourism. DET sets out what you need and how to apply. It also licenses holiday home operators, the companies that handle the guests, the cleaning and the calendar for you. It's a regulated, well-trodden path, and the permit is the first step rather than a hurdle.

Your guests pay a Tourism Dirham fee on top of the nightly rate. The UAE government puts it at AED 7 to 20 per room per night, for up to 30 nights in a row, depending on how the property is graded. Ask DET or your operator which rate applies to yours.

How profitable are holiday homes in Dubai?

Over the 12 months to August 2026, the average Dubai short-let home took Dh136,600 while 69% full. The figures come from AirDNA, reported by Emirates 24|7 on 4 September 2026. The average night went for Dh654. Spread across every night on the calendar, booked or not, that still works out at Dh451.

The market as a whole is growing fast. AirDNA put Dubai short lets at about Dh2.582 billion for the year, with revenue up 172% and occupancy up 24.2%, driven by both more homes listed and higher nightly rates. In other words, more owners came in and prices still went up.

Two numbers to plan around. Being 69% full leaves about 113 nights a year to fill, and Dh136,600 is money in before costs. Both are things you can work with, and the sections below show how.

Do short term rentals really beat hotel prices?

According to the numbers, they do. AirDNA put short term rentals at Dh654 a night in the year to August 2026, while Dubai's hotels averaged Dh579 across 2025. 

What these numbers say is useful, though: guests will pay hotel money, and a bit more, for space, a kitchen and a home that feels like one. Hotels sell more of their nights, at 80.7% against 69%, so your job as an owner is the calendar. 

Get that right and you'll be able to charge above hotel rates in a city that fills its hotels most of the time.

How does it compare with a long let?

Let's do the maths on a one-bed flat bought at Dh1.5 million: at the market average of Dh136,600, a short term stay brings in about 9.1% of what you paid. A long let in a central area brings in less: our Business Bay area guide puts yields there at 5.69%, based on Bayut's data, so around Dh85,000 on the same Dh1.5 million.

That's a head start of about 3.4 points. Some of it goes back out again in the operator's cut, furniture, DEWA and internet, cleaning between guests and the permit. 

What's left is still the reason owners keep moving units from annual contracts to nightly ones.

The other difference is control. A long stay locks your home up for a year. A short one keeps the calendar yours, so you can use the place yourself, block the summer, or push rates in peak season when the city is full.

What should you budget for your short term rental apartment?

Set the budget before you list and the rest is easy. The yearly costs are the permit, the building's service charge, bills, internet, cleaning between guests, the small things guests use up, furniture refreshes over time, and the operator's share if you use one.

The service charge is the one to check early. Bayut's guide puts Dubai at AED 3 to more than AED 30 per square foot a year, and you can look up the approved figure for any building in Dubai Land Department's Service Charge Index or the DubaiREST app. On a 750 sq ft one-bed, AED 20 per square foot is AED 15,000 a year. Knowing that number before you buy is what keeps the maths clean later.

Operators take a share of what the home makes, and the rate moves around. Get it in writing, with what it covers: listing, guest messages, cleaning, linen, and whether furniture and restocking sit on top. A good operator earns their cut by keeping the calendar full.

Why does demand hold up?

Visitors, in short. The Government of Dubai Media Office reported that Dubai had 19.59 million overnight visitors in 2025, up 5% from 18.72 million in 2024. Hotels were 80.7% full, up from 78.2%, at Dh579 a night and Dh467 per available room, across 154,264 rooms in 827 hotels. Guests stayed 3.7 nights on average.

Helal Saeed Almarri, director general of DET, said tourism "continues to be a key driver of economic diversification, delivering tangible impact through GDP growth, investment inflows, and global talent attraction."

Here's the part that matters for an owner. Next to 154,264 hotel rooms, 18,902 short-let homes is a small slice of the beds in this city. That's why occupancy held while more homes came on the market, and why there's still room for well-placed stock.

How to work out what your property could earn

The market figures are averages, and an average blends a studio in Deira with a villa on the Palm. Your number depends on the home you choose, which is good news, because it's the part you control.

Build your own version like this:

• Take what comparable homes in the same building actually charge a night. 

• Apply an occupancy you're happy to defend. 

• Subtract the service charge for that building from the Land Department's index, then the operator's cut, the bills, the cleaning and a yearly amount for furniture. 

That gives you a figure to hold against a long let on the same flat, and it tells you quickly whether the building is worth buying into.

Two things lift that number more than anything else: location guests want to walk around, and someone competent running the calendar.

Where do short term rental work in Dubai?

Location beats furniture every time. The homes that perform are the ones guests can walk from: near the Metro, the beach, a mall, or an office district. The areas we get asked about most for short lets are Downtown Dubai, Business Bay, Dubai Marina and Palm Jumeirah, and our Downtown Dubai and Palm Jumeirah guides cover what buying in each costs.

Two things to check on the building itself. Whether the owners association allows short stays, and how many homes in the tower are already listed, since they set the rate you can charge. On the purchase, our guide to buying ready property in Dubai covers what to look at on a resale home, and our guide for international investors covers ownership rules and costs for overseas buyers.

5 things to check before you buy to short-let

1. Confirm the building allows short stays. 

2. Check how many homes in the same tower are already listed. That helps you set your rate.

3. Look up the approved service charge for that building in the Service Charge Index, not just the brochure.

4. Put the furniture package, and a yearly refresh allowance, in your first-year budget.

5. Compare two or three licensed operators on their cut, and on what that cut covers.

Holiday home or long term rental: a comparison

So, is vacation rental for you?

Yes, if you want the bigger number and you'll either run the home properly or hand it to an operator who will. Yes, if your flat sits somewhere guests want to be. And yes, if you'd like to use the place yourself part of the year while it earns the rest of the time.

A long let is the simpler option if you want one payment a year and no involvement at all, or if the building says no to short stays. For the wider market picture behind either route, our Q2 2026 Dubai real estate market report covers prices and yields by segment.

If you're looking at a specific flat for short-letting, we can check the building's approved service charge, what comparable homes nearby are charging a night, and whether the tower allows short stays, before you commit to anything.

Frequently asked questions

What is a holiday home in Dubai?

A home licensed to take guests for short stays, under a permit from Dubai's Department of Economy and Tourism. You can hold the permit yourself or use a licensed operator who runs the home for you.

How much do holiday homes earn in Dubai?

The average Dubai short-let home took Dh136,600 over the 12 months to August 2026, at Dh654 a night, according to AirDNA. On a Dh1.5 million flat that's about 9.1% of the purchase price coming in.

Is a holiday home better than a long let in Dubai?

On revenue coming in, usually yes. The average short let brings in about 9.1% of price on a Dh1.5 million flat, against 5.69% average yields in Business Bay, and you keep control of the calendar. A long let is simpler if you want one payment a year.

Do I need a permit to do short term rental in Dubai?

Yes. Short stays need a holiday home permit from the Department of Economy and Tourism, which publishes the requirements, paperwork and fees for owners and operators.

What’s the occupancy rate for short-term rentals in Dubai?

The market average was 69% over the 12 months to August 2026. Location and a good operator are what move that number for an individual home.

Do short term stay charge more than hotels in Dubai?

On average, yes. Short lets averaged Dh654 a night in the year to August 2026, while Dubai's hotels averaged Dh579 across 2025.

What does a holiday home cost to run in Dubai?

The permit, the building's service charge, bills and internet, cleaning and laundry between guests, consumables, furniture refreshes, and the operator's cut if you use one. Service charges run from about AED 3 to more than AED 30 per square foot a year, so check the exact building.

How many holiday homes are there in Dubai?

AirDNA counted 18,902 in the 12 months to August 2026, next to 154,264 hotel rooms in 827 hotels, so short lets are still a small share of the city's beds.

Conclusion

The short-let figures come from AirDNA for the 12 months to August 2026, as reported by Emirates 24|7 on 4 September 2026. 

The tourism figures are Dubai's official 2025 results, published by the Government of Dubai Media Office on 9 February 2026. Permit rules come from Dubai's Department of Economy and Tourism, and the Tourism Dirham range from the UAE government portal. 

The Dh1.5 million comparison is our own maths using those averages, shown so you can run it on your own purchase price. Permit fees, service charges and nightly rates change, so check current figures before you budget.

Sources 

• AirDNA, Dubai short-term rental data; 

• Emirates 24|7, Dubai short-term rentals in 2026, AirDNA data, 4 September 2026; 

• Government of Dubai Media Office, Dubai tourism 2025 results, 9 February 2026; 

• Dubai Department of Economy and Tourism, apply for a holiday home permit; 

• Dubai Department of Economy and Tourism, register as a holiday home operator; 

• UAE Government, taxes in tourist facilities; 

• Bayut, service charges in Dubai guide; 

• Dubai Land Department, Service Charge Index.