Dubai has firmly established itself as a top tourist and business destination – and where travelers go, short-term rental opportunities follow.
As the CEO of MYS Real Estate, I’ve seen a surge of investors interested in Airbnb-style rentals. Interestingly, the star of Dubai’s short-term rental market is the one-bedroom apartment. It’s the perfect package: easy to manage, in high demand by visitors, and capable of earning fantastic returns. If you’re considering investing in a property for platforms like Airbnb or Booking.com, here’s why a one-bedroom unit in Dubai should be on your radar.
One-Bedrooms are the Market Sweet Spot:
Did you know that about 70% of Dubai’s short-term rental listings are one-bedroom units shosty.com ?
That’s a staggering share. It tells us that both hosts and guests find one-beds to be the ideal balance between space, cost, and profitability. From a guest’s perspective, a one-bedroom offers more comfort than a studio for couples or solo travelers who want a separate living area, without the higher price of a two-bedroom. For an investor, this means a massive pool of potential guests actively searching for the type of property you own. Whether it’s tourists coming for a week of sunshine or a business traveler in town for a conference, one-bed apartments hit the sweet spot of their requirements. In popular districts (think Downtown Dubai, Dubai Marina, JBR, Business Bay), a well-furnished one-bed can stay booked solid for much of the year. In fact, Dubai’s short-term rentals boast higher occupancy than global averages. Even in the slower summer months, the city’s short-let occupancy was about 3% higher than the worldwide average air-dxb.com.
During peak season (October through April), occupancy rates for short-term lets can reach 80-95% in high-demand areas gogold.realestate. This means for roughly 9 or 10 months a year, your one-bedroom could be occupied almost every single night – effectively turning it into a full-time cash-generating asset.
High Returns (That Often Beat Long-Term Leasing):
Let’s talk numbers. One reason investors flock to short-term rentals is the potential for higher income compared to a traditional year-long lease. In Dubai, this gap is significant. A well-managed one-bedroom Airbnb can yield 30-50% higher annual revenue than it would on a standard long-term contract gogold.realestate.
How? Nightly rates. Tourists and short-stay visitors are willing to pay a premium per night for a furnished, flexible stay. For example, a one-bedroom in Downtown might rent long-term for, say, AED 100,000 a year (~AED 8,300/month). But on Airbnb, that same apartment might fetch AED 500 per night in high season and perhaps AED 300 in off-season uniqueproperties.ae.
Even with some vacancy between bookings, you might average ~20 nights booked per month at, say, AED 400/night across the year. That’s AED 8,000 per month – almost the same as the long-term rent – but recall that high season months will see far more bookings. Over a full year, you could pull in AED 140,000-150,000 in gross revenue. In fact, data shows a “typical” short-term rental in Dubai earns around AED 147,000 per year with ~69% occupancy (about 252 nights booked) airbtics.com.
That’s roughly 12-15% gross yield on a property worth ~AED 1 million – nearly double what a long-term rental yield would be on that same property phoree.ae.
And all this is before considering that Dubai has no tax on rental income, making those extra earnings even sweeter. Tourism Powerhouse – Consistent Guest Demand: Dubai’s tourism numbers are off the charts. In 2023, Dubai welcomed about 14.5 million international visitors uniqueproperties.ae – and 2024 is on track to grow even more, with an 18% increase projected due to events and the legacy of Expo 2020 uniqueproperties.ae. The city has been ranked the world’s most popular tourist destination for the second year running air-dxb.com, and Dubai International Airport is famously the busiest in the world for international traffic air-dxb.com.
What does that mean for you as a short-term rental host? A huge, diverse, and year-round stream of potential guests. Leisure travelers come for winter sun, shopping festivals, beaches, and attractions like the Burj Khalifa. At the same time, business travelers and convention-goers flock to Dubai for numerous conferences, exhibitions (think GITEX, Expo events, Arab Health, etc.), and corporate meetings. There’s rarely an “off-season” – even in the hot summer, Dubai now promotes itself as a summer vacation spot with great deals, and occupancy only dips temporarily. Plus, long public holidays in neighboring countries see regional tourists driving or flying in. The bottom line: demand for short-term stays is robust and growing, which underpins the high occupancy and rates you can achieve with a one-bedroom rental. As an investor, you’re aligning with a city that’s actively attracting more tourists every year (and making it easy for them with visa-on-arrival for many nationalities, world-class infrastructure, etc.). It’s hard to beat that tailwind.
Ease of Management and Flexibility:
Some worry that short-term rentals mean more work – managing bookings, cleanings, guest inquiries. While it’s true that it’s a more active management model than a long-term lease, Dubai offers solutions for that. There’s a thriving industry of professional holiday home management companies that handle everything for a cut of the revenue. They’ll do marketing, pricing adjustments, guest communication, check-in/checkout, and housekeeping. Many of our clients use these services to make their investment truly hands-off. And despite those management fees, they still come out well ahead of long-term leasing in terms of net income.
Another plus: flexibility. You, as the owner, can block off dates for your own use. Imagine having your very own Dubai pad to enjoy whenever you want, while renting it out the rest of the time for profit. I know investors who love that they can spend two weeks in “their” apartment during the holidays and then let it earn money the other 50 weeks. You can’t do that with a long-term tenant in place! Also, you have the flexibility to adjust pricing as you see fit – maybe jack up rates during Expo or New Year’s (peak times when hotels charge a fortune), and lower them a bit in the quieter months to keep occupancy up. Over the course of the year, this kind of dynamic pricing can really maximize your revenue. One specialist short-let firm reported achieving 97% occupancy in June (off-season) by smart pricing and active management, which was 55% higher than the market average occupancy air-dxb.com. That shows how, with attentive management, you can outperform even the strong averages.
One of my clients, Julia, turned her Marina one-bedroom into what she fondly calls her “mini-hotel.” Initially, she was unsure about doing short-term rentals – it sounded complicated. We connected her with a reputable management company. They helped furnish the apartment stylishly, took professional photos, and listed it on 3-4 booking platforms. The result? In the first year, Julia earned about AED 135,000 from bookings, whereas a long-term tenant would have paid her about AED 90,000. Even after all costs – management fees, utilities, cleanings – she netted roughly AED 110,000. She was thrilled, to put it mildly. Guests gave her place great reviews (the view from the balcony helped!), and it became a Superhost listing on Airbnb. Now Julia’s only problem is finding slots when she can use her apartment for a staycation, because it’s almost always booked! It’s a good problem to have as an investor.
In summary, a one-bedroom apartment in Dubai can be your personal goldmine in the short-term rental market. The combination of high tourist demand, premium nightly rates, and strong occupancy makes for a compelling business case. And Dubai’s pro-investor regulations (lenient short-term rental laws and easy licensing) airbtics.com mean you’re operating in a friendly environment.
Interested in riding the Airbnb wave in Dubai? Let’s transform that interest into a concrete plan. Reach out to me, and I can guide you on picking the right location, navigating the holiday home permit process, and connecting with trusted management services. We’ll help set you up so that your investment doesn’t just sit pretty – it works 24/7 generating income. 🌴🏙️✈️
