Short-Term Rentals Boom as Tourism Hits New Highs

Dubai’s thriving tourism sector has fueled a parallel boom in short-term rental properties, making platforms like Airbnb and Booking.com a significant part of the city’s real estate ecosystem.

Tourism Growth Driving Demand

Dubai welcomed over 17 million visitors in 2024, and projections for 2025 suggest an even higher number as global travel rebounds. Events at Expo City, international conferences, and the city’s year-round appeal are driving visitor numbers, and with them, demand for short-term rental housing.

Benefits for Investors

Short-term rentals often deliver higher yields than traditional long-term leases. A one-bedroom apartment in Downtown Dubai, for instance, can generate 20–30% more income annually when rented short-term to tourists compared to long-term tenants. Investors also enjoy flexibility, with the option to use properties personally during off-peak seasons.

Regulatory Clarity

Dubai’s government has embraced the short-term rental sector by introducing a licensing system that ensures compliance and quality. This regulatory framework reassures both investors and visitors, positioning Dubai as a premium short-term rental destination.

Outlook

As tourism continues to grow and global events bring new waves of visitors, the short-term rental market is set to remain a highly lucrative segment. For investors seeking quick returns and flexibility, this sector is becoming increasingly attractive.