Dubai Short-Term Rental Trends 2025 Explained
Dubai is having a record tourism year. The city welcomed 9.88 million international overnight visitors in the first half of 2025, up about 6 percent from last year, putting it on track to reach 20 million for the full year. Hotels were 80.6 percent full, with higher average room prices and more money made per room, which shows that when hotels fill up, more people look for holiday homes. Owners who notice these busy times can set better prices and book more nights.
Dubai’s short-term rentals are still doing well. The average nightly price is about US$199 and about 55 percent of places are booked on Airbnb and Vrbo together. Areas like Marina and Downtown often do better than average in winter. The gap between busy and quiet times is still large, so paying close attention to how you manage your property and adjust prices matters more than ever.
Below is what matters in 2025 and how to turn it into revenue.
1) Demand drivers you can bank on
Air access and source markets. DXB handled a record 46 million passengers in the first half of 2025, with India still sending the most visitors. More flights and better connections keep Dubai busy and make hotels fill up during holidays and events. When hotels fill up, prices for short-term rentals go up. Plan ahead for busy weeks and holidays in key markets instead of just reacting to city averages.
Policy and infrastructure support. Dubai’s plan to expand Al Maktoum International (DWC) to handle 260 million passengers in the next ten years will take time, but it shows the city wants to keep bringing in more visitors. For short-term rental owners, this means the market is set up for lots of travelers and different kinds of trips.
2) Price where demand is, not where averages sit
City averages hide the real story. What moves profit is how well you capture spikes and protect floors.
Winter and events. Prices in December and January can be twice as high as in summer. Set higher prices and longer minimum stays around New Year’s and big shows at Expo City. Hold back your best listings for higher prices and avoid letting cheap short stays stop you from getting longer, more profitable bookings.
Lead-time ladders. Most city bookings happen 30 to 45 days before guests arrive, then jump up at the last minute during hot or less busy times. Offer better deals for early bookings, good value in the middle, and stricter rules for last-minute bookings to earn more per room without just lowering prices.
Compression nights. Watch hotel occupancy and flight arrivals. When hotels pass 80 percent, your best listings should move to premium fences, not broad discounts. DET’s H1 hotel occupancy at 80.6 percent is a reminder to build compression logic into your PMS, not just your instincts.
OPS method. We start with typical prices for each neighborhood, then adjust for seasons, special events, and booking timing. We check our progress every week and change our minimum prices when things shift, instead of just following old averages. You can also receive an ROI-based projection on your short-term rental investment to see what your property could achieve.
3) Guest behavior is fragmenting. Design for segments.
Families want multi-bedroom layouts, full kitchens, blackout curtains, and stroller-friendly access near beaches or malls.
Business travelers want good desks, fast Wi-Fi, quiet bedrooms, and easy self check-in near Downtown or DIFC.
Digital nomads stay for one to three months and want weekly cleaning, comfortable chairs, and ways to save on electricity.
The best way to make money is not just having a “nice” design. It is setting up and describing each place to fit a certain type of guest. OPS matches each listing to a main guest type and changes the photos, the first three bullet points, and the headline for that guest. This helps more people click and book, which matters even more now that prices are easier to compare.
Why transparency matters. In April 2025 Airbnb made total price display the default worldwide, so guests see all fees included in the search price before taxes. Listings that used to show low nightly rates but added big fees now show up as expensive. This pushes managers to use simpler fee structures, clearer value, and steady quality. Change your pricing and wording to win on real value, not hidden extra charges.
4) Mobile rules the funnel. Direct needs to feel instant.
More and more people are looking for travel options on their phones. Data shows that most visits come from mobile, but fewer people finish booking on their phones compared to computers. This is often because the checkout process is slow, forms take too long to fill out, or prices are not as good as those on other travel sites. Your own website should be quick, reliable, and offer great prices.
Playbook. Make sure your prices are the same as those on other travel websites, offer a small extra benefit for people who book directly like letting them check in at different times, and keep the mobile booking process to just three steps. Use reminder ads to bring back people who left without booking. Skift Research shows more people are looking for travel options on their phones, and that travel companies can get more mobile bookings by making their sites easier to use.
OPS stance. We make our own booking site quicker and simpler to use, then use tools to bring back guests who have booked before, and do this for less money than other travel websites.
5) Regulation is stable but non-negotiable
Dubai requires a DET holiday home permit, the right type of registration, and collecting the Tourism Dirham fee for each bedroom each night. Following the rules helps keep your property available and easy to find online. If your business grows, set up a regular schedule for renewals and paperwork instead of rushing at the last minute. OPS takes care of permits, renewals, and guest fee steps so your properties stay listed and you have less to worry about.
6) Sustainability and experience are not fluff. They are filters.
More guests are looking for small but thoughtful signs that you care. These details often show up in reviews and can boost your bookings. Dubai Sustainable Tourism program encourages the industry to adopt clear, measurable steps. You do not have to renovate your property to see results. Try using energy-saving bulbs, refillable toiletries, indoor air quality checks, and a welcome guide that highlights local businesses. These simple changes can lower complaints, improve your reviews, and help your listing stand out in search results.
7) Abu Dhabi is the next logical expansion
Abu Dhabi’s short-term rental market is smaller than Dubai’s, but it is growing. There are about 4,000 active listings, with lower average daily prices than Dubai and chances to make rentals better. Owners who move quickly with the right, approved options can stand out. OPS is increasing its presence with a plan that fits Abu Dhabi’s needs and available properties.
What to do now: a tactical checklist
→ Plan your pricing for the next 12 months. Include changes in demand during different seasons, busy events, and set up three different advance booking options in your property management system. Focus on weekly booking trends instead of comparing daily rates.
→ Choose one main guest type to target, such as families, business travelers, or digital nomads. Update your top three selling points and adjust your photo gallery to appeal to them.
→ Make a plan for busy times. When more than 80 percent of rooms are booked, use stricter booking rules, ask guests to stay longer, and show off your best rooms.
→ Adjust your fees so they are easy to understand. Now that Airbnb shows the full price by default, make your fees simple and show the value clearly right away.
→ Make it easier for people to book directly on their phones. Give the same prices as other travel websites, add a clear bonus, make checkout faster, and contact guests who leave before finishing their booking.
→ Set up a system to stay compliant. Schedule renewals, keep documents organized, and handle Tourism Dirham tasks regularly so your business keeps running smoothly.
→ Try out a pilot unit in Abu Dhabi, choosing a location near popular areas like Saadiyat or Yas. Use your Dubai team’s experience to manage costs.
FAQs
What is Dubai’s current STR performance?
Average nightly rates are about $199 and about 55 percent of rooms are filled, with even better numbers in the best areas during winter. You can do better than average if your place looks great, has good reviews, and you adjust your prices quickly.
How far in advance do guests book?
In the city, most guests book about 30 to 45 days ahead, but there are more last-minute bookings during less busy and summer times. Set your prices to match these booking patterns.
What regulations matter most?
You need a DET holiday home permit, classification, and correct Tourism Dirham collection. Keep renewals and documentation on schedule.
Will direct bookings really grow in 2025?
Yes. More people are finding places to stay on their phones. If you make your website easy to use on mobile and show clear benefits, you can get more direct bookings and spend less to get customers.
Is Abu Dhabi worth it now or later?
Now is a good time for those who start early. There are fewer places available than in Dubai, and more people want to stay. Well-run and legal rentals can get noticed.
How OPS aligns to 2025
We set prices based on demand, not just averages. We focus on one guest segment and make sure our listings clearly show who they are for. We see compliance as a core part of our process and use direct bookings, especially on mobile, to grow. We only expand when we can keep our standards high. If you want a performance plan that reflects these principles, we can benchmark your property and outline the next steps.