Top Neighborhoods For Short-Term Rentals In Dubai

Dubai is a global business and tourism hub. Businessmen, entrepreneurs, and visitors frequently come to Dubai for business trips and the exploration of this magnificent city. Considering this, the demand for short-term rentals in Dubai increases over time as these living options allow people to stay for a brief period in the city based on their preferences without long-term commitments. 

Short-term rentals provide perfect accommodation solutions to people who visit the city for a brief period. Properties offering short-term rental options normally generate high rental yields, inviting property investors to capitalize on this niche of the real estate sector. If you also intend to invest in such properties for profit purposes then keep reading this blog because it will help you find the most suitable area for investment based on your specific objectives. 

What Defines A Short-Term Rental Property?

A short-term property is primarily a residential unit that is rented out for a brief period. The rental term can range from a few nights to a few months. Tourists and business professionals who seek temporary accommodations can consider such properties for their stay. Unlike traditional rented properties, these rental spaces are fully furnished and are laced with modern amenities, offering temporary accommodation. 

Why Dubai for Short-Term Rentals?

Dubai is not only a business hub but also a global tourism attraction. It welcomes millions of visitors each year. Given the data, around 14.5 million people visited Dubai in 2023 and this number only grew in 2024. The charm and captivation of the city attract people from all over the world, reflecting the scope of the short-term rental business in Dubai. 

The number of visitors is increasing day by day, growing the demand for such rental options. Also, investors in this particular domain also generate significant returns on investment (ROI). In the first place, there is no income tax in Dubai and also Dubai offers 8-10% ROI in short-term rentals as compared to the global average which is 4-6% ROI. Considering this, Dubai becomes the obvious destination to start a short-term rental business. 

Benefits For Short-Term Rentals In Dubai

Benefits For Landlords

• Unlike long-term leases, short-term rentals normally generate high returns mainly when these properties are located in popular areas
• Landlords can seamlessly adjust rental rates based on market trends
• Landlords can also use these properties for their personal use whenever they want
• The risk of non-payment or legal dispute is quite low because tenants normally stay for a brief period
• Property owners can keep their properties in good conditions

Benefits For Tenants

• Short-term rental options allow visitors and business professionals to stay for a short period based on their requirements
• These properties are fully furnished, and equipped with furniture, appliances and amenities
• Tenants can find these properties in key areas of the city such as Downtown Dubai, Dubai Marina, Palm Jumeirah, etc.
• Tenants are not required to pay for utility bills and maintenance costs
• Based on their specific needs, tenants can explore a variety of options such as villas and serviced apartments.

Top Communities for Airbnb Investments in Dubai

The iconic skyline, global landmarks such as Burj Khalifa, the city’s dynamic nightlife, luxurious resorts, a range of entertainment options and business opportunities attract both tourists and professionals. Let’s explore the best areas for short-term rentals in Dubai!

Downtown Dubai

Home to the Burj Khalifa, Dubai Mall and Dubai Fountain, Downtown Dubai is one of the most popular neighborhoods in Dubai. This area is known for its lavish living and premium business spaces. Only Burj Khalifa attracts around 3.6 million visitors each year, leaving aside its other features. This area is also located adjacent to other popular areas and road networks, attracting both business professionals and tourists. Investors normally get around 8.5% ROI from short-term rentals in this area. The average cost of a 1-bed-room apartment in this area is AED 2.5 million and normally AED 250-300 are charged per night for short-term stays in Downtown Dubai.

Dubai Marina

Dubai Marina is one of the most sought-after waterfront destinations in Dubai. Located in proximity to key areas and road networks, this community is known for offering amazing living experiences. Luxury living spaces, restaurants and a range of entertainment facilities make it a preferable choice for visitors. The average cost of a 1-bedroom apartment in Dubai Marina is AED 1.8 million and the rental rate remains somewhere between AED 200 to AED 400 per night in Dubai Marina. Investors can expect a 9% ROI from their temporarily rented properties.

Palm Jumeirah

Palm Jumeirah by Nakheel Properties is the largest man-made island in Dubai. It is a palm-tree-shaped community that is developed to introduce new yet exciting ways of living. It is a luxurious development that offers the ultimate extravagance and opulence. Both residential and commercial properties are available here. Palm Jumeirah normally offers 10% ROI on short-term rentals. The cost of a 1-bedroom apartment in this man-made development is AED 3.8 million and the living cost per night is AWS 400-800.

Business Bay

Business Bay is a mixed-use development in Dubai. It is located close to Downtown Dubai and DIFC. It is a freehold mixed-use development, featuring both residential and commercial real estate investment opportunities. Considering its business potential and living facilities, the demand for short-term rentals is growing in this area. It offers normally 8% returns on short-term rentals. The cost of a 1-bedroom in Business Bay is AED 1.6 million and the charges per night remain somewhere between AED 150 to AED 300.

Jumeirah Village Circle

Jumeirah Village Circle (JVC) by Nakheel Properties is a family-friendly community in Dubai. It is a freehold development and is located at a prime location between AL Khail Road (E44) and Sheikh Mohammed Bin Zayed Road (E311). Its proximity to Downtown Dubai, Dubai Marina and Dubai Mall and its lavish offerings make it a decent choice for living. Families and people who come for long-term tourism prefer living in JVC because it is considered a comparatively affordable area. The average cost of a 1-bedroom apartment in JVC is AED 750,000 and it costs around AED 100-200 per night in JVC. Investors can expect to earn 9.5% ROI.

Jumeirah Beach Residence (JBR)

Jumeirah Beach Residence is a freehold self-contained community in Dubai. This family-oriented community is located at a prime destination near The Walk and The Beach. Over 40 residential and hotel towers make it a popular destination for living in Dubai. People who are passionate about a lively atmosphere also consider JBR for living in Dubai. 

Expo City Dubai

Expo City Dubai in Jebel Ali Area is being built on the legacy of Expo 2020 Dubai. It is a vibrant and sustainable neighborhood that offers both business and living opportunities. Located at a prime destination, it is considered a vibrant and sustainable community, offering a plethora of investment opportunities including short-term rental business options. Considering its vibrancy and the interests of investors, this neighborhood has the potential to generate considerable returns in this particular domain.

Understanding Short-Term Rental ROI in Dubai

The short-term rental market in Dubai offers lucrative yields. Given the increasing number of visitors and professionals in Dubai and tax benefits, investors can expect high returns. If you invest in a holiday home business in Downtown Dubai, you can expect an 8.5% ROI. Dubai Marina offers 9% ROI, JVC offers 9.5%, Business Bay extends 8% and Palm Jumeirah normally allows investors to generate 10% ROI in short-term rentals.

Conclusion

Dubai is a global business and tourism hub. Investors, professionals and business people from all across the globe come to Dubai for various reasons. The number of visitors is also increasing, given the captivation of the city, signifying the importance of short-term rental business in Dubai. Tax advantages, surge in tourist numbers and exceptional returns make Dubai one of the best locations to choose for short-term rental business. Areas such as Downtown Dubai, Dubai Marina, Palm Jumeirah, Jumeirah Village Circle and Jumeirah Beach Residences are some of the key areas to consider for starting your holiday home business.

Invest Smart, Live Grand – Get Expert Assistance Today!

Kelt and Co Realty is a prominent real estate agency in Dubai. This property company comes with a range of investment opportunities. Its professional team of real estate agents helps investors to find their dream properties. No matter whether you are looking for a property to live in or start your business in Dubai, we can explore the most suitable option for you because we believe in delivering value and tailor-made investment solutions.