Dubai Short-Term Rentals & Airbnb
Short-term letting in Dubai is legal, licensed and regulated by the Department of Economy and Tourism (DET). A licensed holiday home typically grosses 20–40% more than a long-term lease, but operating costs and vacancy erase much of that gap — the honest uplift is closer to 1.5–2.5 percentage points of net yield.
Key takeaways
- You need a DET holiday-home permit; unlicensed listings are fined.
- Expect 75–85% occupancy in prime tourist areas.
- Management fees run 15–25% of gross booking revenue.
- Tourism Dirham fee is charged per bedroom per night.
Short-let vs long-let: the real numbers
| Line (900 sqft 1BR, Marina) | Long-term | Short-term |
|---|---|---|
| Gross annual revenue | AED 95,000 | AED 138,000 |
| Occupancy assumption | 100% | 80% |
| Management | 5% | 20% |
| Utilities / internet / cleaning | Tenant pays | AED 22,000 |
| Licence + tourism fees | — | AED 4,500 |
| Furnishing amortised | — | AED 8,000 |
| Net to owner | ~AED 90,000 | ~AED 76,000 + upside in peak season |
How to get a holiday-home licence
- Register as an owner on the DET holiday-homes portal.
- Upload title deed or Ejari, passport copy and DEWA account.
- Pay the annual permit fee (tiered by unit size and classification).
- Obtain the unit's classification (Standard or Deluxe) after inspection.
- Register each guest stay and remit the Tourism Dirham fee.
Where short-lets actually work
- Dubai Marina and JBR — beach and walkable dining
- Downtown Dubai — Burj and Mall proximity
- Palm Jumeirah — premium nightly rates, strong European winter season
- Business Bay — corporate mid-week demand plus weekend tourism
Frequently asked questions
Is Airbnb legal in Dubai?
Yes, provided the unit holds a valid holiday-home permit from the Department of Economy and Tourism. Operating without one attracts fines and delisting.
How much can you earn from Airbnb in Dubai?
A prime one-bedroom typically grosses AED 130,000–150,000 a year at 80% occupancy, netting roughly AED 75,000–85,000 after management, utilities and fees.
Do buildings allow short-term rentals in Dubai?
Not all. Some owners' associations restrict holiday homes. Confirm the building's policy before buying with a short-let strategy in mind.