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How Strong is the Short-term Lettings Market in Dubai?

Dubai has become one of the top tourist destinations in the world, attracting millions of visitors every year thanks to luxurious accommodation, world-class shopping,stunning architecture. With the demand for accommodation, Dubai's short term rental market has been booming in the UAE. With the rise of platforms like Airbnb, travellers can now rent apartments, villas, houses for their stay in Dubai. But just how strong is this market? In this post, we’ll explore the short-term lettings market, and answer some pressing questions for Airbnb owners in the country.

Booming short-term rental market
Its boom to meet the increasing demand for accommodation in Dubai.

The Growth of Short-Term Lettings

In recent years, Dubai short term rental market has seen significant growth. According to AirDNA, a leading provider of short-term rental data and analytics, the number of active short-term rental listings in Dubai increased from 2019 to 2020, despite the impact of the COVID19 pandemic on the tourism industry across the world.

One of the driving reasons behind this growth and the demand is the flexibility that short-term lettings offer. Travellers may choose from a wide range of properties in different locations and at different price points, making it easier for them to customise their stay to their specific needs, preferences. Plus, short-term rentals often provide more space and amenities than traditional hotel rooms, making them an attractive option for families and groups of friends travelling together.

The rise of digital platforms that have made it easier than ever for property owners to rent out their homes is another factor driving the growth of short term rentals in Dubai. Platforms like Airbnb offer a user-friendly, easy interface where real estate owners should list their properties, manage bookings, along with providing travellers with a hassle-free booking experience.

Nightly rates in Dubai

Short-Term Lettings Regulations

It is worth noting that Dubai short term rental market is subject to regulation. In 2016, the Dubai Tourism Department introduced regulations requiring all property owners who wish to rent out their homes on a short-term basis to obtain a permit. The regulations also require that properties meet certain health and safety standards, and that real estate owners provide adequate insurance cover.

Although these regulations add an additional layer of complexity for property owners, they also help to ensure that guests have a safe, enjoyable experience in the UAE – increasing the chance they will return.

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The Future of Short-Term Lettings

Despite the impact of the COVID-19 pandemic on the tourism industry, short-term lettings market has showed a lot of resilience and growth over the past few years. With the market for short-term rentals continuing to grow, platforms like Airbnb making it easier than ever for real estate owners to start renting out their homes, the future of the short term rental market is looking bright.

Occupancy rates and nightly rates have been on an upward trend over the past few years, Dubai continues to invest in its tourism industry, leading to more growth in demand for short-term rentals.

Showcasing the ease of starting a short-term rental business with platforms like Airbnb, in a flourishing market
Dubai's tourism investment fuels demand for short-term rentals.

Running an Airbnb in Dubai

Airbnb is a platform that allows people to rent out their homes or properties to travellers. But when it comes to the best site to list Airbnb Dubai, there are several options to consider. Besides Airbnb, hosts can list their properties on a range of sites including Airbnb competitors Dubai such as, Vrbo, and Expedia.

Airbnb is the most popular platform for short-term rentals, with a vast user base and a well-established reputation. Along with this, Airbnb provides hosts with a range of tools and services, such as pricing suggestions, booking management, and guest communication tools that help them optimise their earnings and provide excellent customer experiences.

Before listing your property for rent, it’s best to research the market and choose the platform that best suits your target audience. It’s also worth working with Airbnb management services Dubai such as UpperKey to manage your listing across multiple platforms.

Importance of market research and targeting the right audience before listing a property for rent
Leveraging Airbnb management services in Dubai.

Who Pays Airbnb Hosts?

The payment process for Airbnb is simple and secure. The guests pay Airbnb when they book accommodation, and then Airbnb releases the payment to the hosts. This way, the hosts do not need to worry about collecting payment from their guests.

What Percentage Do Airbnb Take?

If you are considering being an Airbnb host in Dubai, you should note that Airbnb takes a 3% service fee for each booking. Along with this, if you use Airbnb’s payment processing system, you will also be charged a payment processing fee.

How Much Does the Average Airbnb Owner Make?

The average daily rate for an Airbnb rental in Dubai is close to $172, and the average occupancy rate is 60%, according to a report by AirDNA. Based on these figures, an average Airbnb host can expect to earn around $1,940 per month.

However, it’s worth noting that how much you can earn as an Airbnb host in Dubai will depend on a range of factors such as the location of this property, the property size, and the number of bookings received. Along with this, hosts who use Airbnb management services in Dubai can earn more by optimising their listings, managing pricing, and providing an excellent standard of customer service to their guests.

Importance of providing excellent customer service to achieve higher earnings as an Airbnb host in Dubai
The location, size, and number of bookings as key factors impacting Airbnb earnings in Dubai.

Do You Need Insurance for Airbnb?

As an Airbnb host in Dubai, it’s more that essential that you have insurance to protect your property and yourself in case of any accidents or damage caused by your guests. Airbnb offers a Host Protection Insurance program that provides primarily liability coverage. However, you should always carefully read the terms and conditions of the insurance policy to understand the coverage and exclusions and determine if it’s right for you.

Additionally, hosts might want to consider getting additional insurance coverage, such as property damage insurance, personal liability insurance, or landlord insurance to further protect themselves.

The protection of the host's investment through the appropriate insurance coverage as an Airbnb host in Dubai.
Option for hosts to consider additional coverage like property damage, personal liability, or landlord insurance for enhanced protection.

Can You Get Someone to Run Your Airbnb?

Yes, you can hire an Airbnb manager Dubai or an Airbnb agent Dubai to run your Airbnb. These are professionals who are experienced with managing short term rentals Dubai and can help you with everything from setting up your listing to managing guest communications, handling bookings, and ensuring that your property is clean and ready for guests.

Depicting how Airbnb managers in Dubai can optimize rental income for hosts through their expertise in short-term rental management
Dubai's Airbnb managers optimize your rental income.

In Dubai, Upperkey Dubai, one of the best Airbnb management services providers. We offer rental property management services Dubai and expert property management in Dubai, including the best Airbnb concierge Dubai service. Our team of professionals work hard to ensure that you maximise your earnings and provide top-notch customer service to your guests. We can help with check-in and check-out, cleaning and maintenance, and guest communications. We also provide Airbnb arbitrage Dubai services, allowing you to earn money by renting a property on a long-term basis and subletting it on Airbnb.

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Overall, Dubai's short-term lettings market is a promising and lucrative option for the real estate owners and travellers to this country. Short-term lettings offer a unique, personalised experience that’s tailored to the individual needs and preferences of the traveller.

If you’re interested in running an Airbnb in Dubai, UpperKey can help. We offer a range of short-term property management services to help you maximise bookings, increase income, and build the reputation of your short-term rental. Contact us today to discuss your requirements and find out more.

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