whatsapp

Dubai Short-Stay Rental Rates Slow as Landlords Rethink Strategy for Summer 2025

  • 0
  • 501
/media/GA_2_1bvNtOc.webp © Image Copyrights Title

Dubai’s short-stay rental market is showing signs of strain as a flood of new residential units tempers rate growth and raises questions for property investors.

While short-term rentals once offered landlords rapid income with minimal vacancy, recent data points to a 15% drop in average daily rates (ADR) and occupancy dips of up to 25%, especially during the recent Eid break. Many UAE residents chose overseas travel this season, pulling down demand.

“The market is oversupplied,” said Vinayak Mahtani, CEO of bnbme. “We saw a lot of units added, but demand didn’t keep up.”

As a result, some landlords are shifting focus. Several have pulled their units from short-term platforms and moved them into one-year leases, where rental growth remains robust. According to CBRE, Dubai's annual rental rates are up 11% year-on-year, bolstered by the new Digital Rental Index, which has empowered landlords to ask for higher rates.

“Summer 2025 will be a turning point,” said a property manager. “With more units completing soon, landlords must decide — short-term flexibility or long-term stability?”

For now, the long-lease market remains strong. But with Dubai's real estate evolving rapidly, investors are watching closely to determine which rental route will deliver the most consistent returns.

Related Posts
© Saudi Arabia Launches New E-Commerce Payment System to Make Online Shopping Easier and Safer

Saudi Arabia Launches New E-Commerce Payment System to Make Online Shopping Easier and Safer

The Saudi Central Bank (SAMA) has introduced a new e-commerce payment system that aims to improve how online payments are made across the Kingdom. This is a big step forward in Saudi Arabia’s push to ...

  • 91
© Buy Gold in UAE, India, or Elsewhere in GCC? What You Need to Know About Prices, VAT, and Design Trends

Buy Gold in UAE, India, or Elsewhere in GCC? What You Need to Know About Prices, VAT, and Design Trends

Gold remains one of the most cherished purchases for residents and travelers alike across the UAE, India, and the broader GCC. But where you buy gold, and under what tax regime, can significantly affe...

  • 81
© United Airlines Flight UA82 Aborts Takeoff to India After Mid-Air Cooling Fault

United Airlines Flight UA82 Aborts Takeoff to India After Mid-Air Cooling Fault

Dubai: A United Airlines flight bound for New Delhi, India, was forced to abort its journey and return to Newark Liberty International Airport following a technical malfunction in the aircraft’s elect...

  • 98
© Dubai Land Department Partners with Crypto.com to Launch Blockchain Real Estate Platform

Dubai Land Department Partners with Crypto.com to Launch Blockchain Real Estate Platform

Dubai: The Dubai Land Department has signed a landmark partnership with global crypto platform Crypto.com to develop a blockchain-based real estate ecosystem that will allow virtual buying, selling, t...

  • 106
© Are Oil Prices Headed for a Slump as OPEC+ Accelerates Output?

Are Oil Prices Headed for a Slump as OPEC+ Accelerates Output?

Dubai: Crude oil prices may be on the verge of a downturn as the OPEC+ alliance ramps up production at a pace that could outstrip global demand. Leading investment banks have warned that benchmark oil...

  • 97
© Saudi Arabia’s Q-Commerce Star Ninja Secures SAR 1 Billion in Funding

Saudi Arabia’s Q-Commerce Star Ninja Secures SAR 1 Billion in Funding

Riyadh: Saudi Arabia’s fast-rising Q-Commerce platform, Ninja, has raised SAR 1 billion in a significant investment round led by Riyad Capital, as the company aims to accelerate expansion across the K...

  • 136
© Will UAE Gold Prices Fall If Trump Strikes Trade Deals?

Will UAE Gold Prices Fall If Trump Strikes Trade Deals?

Dubai: UAE gold prices are under renewed pressure this week, with signs pointing to a potential drop to the Dh360 per gram level, contingent on a geopolitical trigger from Washington....

  • 111
© AirAsia Inks $12 Billion Airbus Deal During Malaysian PM’s Visit to France

AirAsia Inks $12 Billion Airbus Deal During Malaysian PM’s Visit to France

Paris/Kuala Lumpur — AirAsia has signed a tentative $12.3 billion agreement with Airbus SE to acquire up to 70 extended-range A321XLR jets, marking one of the largest commercial aviation deals of the ...

  • 133
© Kuwait Wealth Fund Sells $3.4 Billion AIA Stake in Major Hong Kong Deal

Kuwait Wealth Fund Sells $3.4 Billion AIA Stake in Major Hong Kong Deal

Hong Kong —The Kuwait Investment Authority (KIA) has quietly sold a 3.7% stake in AIA Group Ltd., raising HK$26.8 billion ($3.4 billion) in one of the year’s largest equity deals in Hong Kong....

  • 148
© Gold at $3,336: What Entry Price Should UAE and Gulf Investors Watch?

Gold at $3,336: What Entry Price Should UAE and Gulf Investors Watch?

Dubai — As gold holds steady at $3,336 an ounce, UAE and Gulf investors are closely watching price action, with many identifying $3,250/oz as a key level to build or expand their positions....

  • 170
Commnets 0
Leave A Comment