Rental in Dubai: Short or long term, a growing market
Understanding the rental market in Dubai
Dubai's real estate market is booming. In 2024, according to figures from the DLD (Dubai Land Department), the number of transactions will have increased by around 36% compared with 2023.
There are several reasons for these figures. Firstly, Dubai is a secure, investment-friendly hub with an advantageous tax policy. In addition :
Demographic growth is real, with almost 4 million people living in Dubai by 2025.
In 2024, Dubai welcomed 18.72 million international visitors. This represents a 9% increase on 2023.
Faced with this influx of people, the housing supply has to be up to the task.
Which profiles rent in Dubai?
There are two types of property rentals in Dubai. On the one hand, there are short-term rentals. These are particularly popular with tourists, who are just passing through for a few days (or weeks, at most). Friends, couples, families and digital nomads are all catered for.
The second type of property rental in Dubai is long-term rental. This is mainly for expatriates. Often, it's young professionals or families looking for a new professional and personal challenge. Long-term rentals are spread over several months or years.
Short-term rental in Dubai: fast-growing potential
In Dubai, short-term rentals are well established, and AirBnb is a well-established platform. This type of rental generates returns, as rates are often higher per week, and with Dubai attracting more and more people, short-term rentals often boast very high occupancy rates.
But beware. Renting an apartment in Dubai with AirBnb isn't as simple as all that. In order to rent out your accommodation on this or any other short-term rental platform, you need to obtain a Holiday Homes Permit. This permit comes at a cost. It costs 370 AED for a one-bedroom apartment and is valid for one year (renewable).
Last but not least, short-term rentals in Dubai, while profitable, also require constant management. Furnishings and decoration, cleaning and concierge costs, problems with tenants or neighbors, as well as high turnover, you need to know how to anticipate and manage to make your rental project a success.
Ideal neighborhoods for short-term rentals
Tourists tend to prefer Dubai's central or most sought-after districts for their vacations.
Rather than out-of-the-way, inaccessible neighborhoods, they'll prefer well-connected neighborhoods close to all amenities and major tourist attractions.
These districts are :
- Downtown
- Dubai Marina
- JBR
- Business Bay
- The Palm
These are also the neighborhoods in which some of Dubai's finest real estate residences can be found. They offer beautiful views of the Burj Khalifa, the sea or the marina, and exceptional services.
Long-term rental in Dubai: a stable, secure market
Long-term apartment rental in Dubai is a simpler, faster and more energy-efficient way of renting out your home. The studio or apartment is rented to a single person or family for an initial period of 12 months, renewable.
The fact that only one person or family rents the property greatly simplifies its management. There's virtually nothing to do, apart from being able to respond to the tenant's needs in the event of an emergency.
Note, however, that this implies lower profitability. It is estimated that the return on a long-term apartment is between 6% and 8%.
Advantages of long-term leasing
Long-term apartment rental in Dubai offers other advantages, such as :
- recurring income and secure rents, as rents are paid in a single lump sum for the next 12 months.
- limited turnover,
- lower costs, because there's no concierge to pay or costs associated with furnishing.
Strategic areas for long-term rentals
Depending on your target market, certain neighborhoods may be more strategic than others. If you're targeting young, active expatriates, whether single or in a couple, investing in a studio or apartment in the neighborhoods on this list could be an excellent idea:
- Downtown
- Dubai Marina
- JBR
- Business Bay
- The Palm
If you are targeting families, who are looking for a home in a quiet and secure environment, then neighbourhoods such as Arjan or Jumeirah Village Circle could prove very attractive.
Short-term vs. long-term: which strategy is best for investing?
What to choose between short- and long-term investment? Here's a table comparing the two strategies:
| Short-term rental | Long-term rental | |
| Return on investment | 10 to 12% profitability | 6 to 8% profitability |
| Risks | Controlled, thanks to a strict rental policy | Controlled, thanks to a strict rental policy |
| Management efforts | Very high (management of rentals, dates, in conjunction with platforms) | None, since everything can be managed by a real estate agency |
| Additional expenses | Very high (janitorial services, cleaning, furnishings, repairs) | None, except in the case of delegated management (5% of annual rent) |
| Taxation | No tax on rental income, no property tax, no capital gains tax, double taxation agreement between France and the UAE. | No tax on rental income, no property tax, no capital gains tax, double taxation agreement between France and the UAE. |
What type of property should I choose?
For short-term rentals, one- or multi-bedroom apartments in central districts are preferred. It's quite rare for people to rent in Dubai on their own, except for digital nomads, who represent a tiny proportion of the target. They are mostly groups of friends or families visiting Dubai, who need space and an apartment or even a villa with several bedrooms.
If you decide to invest in long-term rentals, you should know that in Dubai, studios are the easiest to rent. They are affordable and are aimed at single people or couples who are in the expatriation phase.
You can also opt to buy and market a 1 or 2-bedroom apartment, targeting expatriate families. If this is the case, opt for quiet neighborhoods such as Jumeirah Village Circle, especially if they have children. These neighborhoods are close to all amenities (healthcare, sports and education).
In any case, to give yourself the best chance of success,buy a property in a good location, close to public transport (metro, bus), schools and health centers. You should also opt fornew, recentproperties in residences with premium services (private swimming pool, gym, cinema, lounge, coworking space).
Why use a real estate agency for rental management?
Whether you opt for short or long term rental, using a real estate agency in Dubai can be a strategic and reassuring choice for rental management. An experienced agency is familiar with the specifics of the Dubai market, masters current regulations and has a solid network to ensure that your property is rented quickly. It will also take care of all the administrative, legal and technical tasks involved: drawing up the contract, collecting the rent and following up any incidents. For non-resident investors, this is a real time-saver and a guarantee of professional, compliant management. What's more, some agencies offer tailor-made services, including property maintenance, tenant relations and regular reporting on rental performance. A turnkey solution, ideal for investing remotely with complete peace of mind.
Market trends for the years ahead
Dubai's real estate market is set to continue growing. For example, the number of transactions in the first quarter of 2025 was 23% higher than in 2024, which was already a record year. Growth prospects are positive for 2026, with 48,400 new units expected.
This high level of supply is complemented by impressive political and financial stability. For the time being, there is no indication that the Emirates will change their real estate policy. This situation is extremely reassuring for investors, who can look forward to the medium to long term.
Guillaume Giroux, Dubai Immo founder and real estate expert, Dubai, UAE
As founder of the Dubai Immo Group and a real estate investor, I bring you daily updates on the Dubai market. My aim is to provide you with all the keys you need to invest wisely and securely, by sharing my in-depth analysis and strategic advice.
