1 YEAR RENTALS POPULAR THAN SHORT TERM RENTALS IN 2025?

In the past few years, short term rentals have climbed to the top of Dubai’s property market as one of the hottest sources of demand and return on investment (ROI). However, in 2025, the market presents something interesting; longer-term rentals (primarily one-year leases) are now in higher demand while the short-term ‘staycations’ have seen a 20-25% drop in occupancy, with rental rates failing by around 15%.

Short-term rentals became a favourite among Dubai landlords due to the rising number of tourists and new residents arriving for tourism, business or work. However, the decline in this trend stems from two key factors. First, the initial surge in demand led to a flood of short-term rental units entering the market, which eventually saturated supply, causing landlords to reduce their rates. Second, the duration of visits and stays by tourists and new residents has increased-thanks to the UAE’s exceptional tax benefits, safety and many other world-class advantages.

With more reasons to stay in Dubai long-term, many residents and extended visitors have shifted their focus from short-term to long-term rentals. To adapt to this market shift, a considerable number of properties initially listed as short-term rentals are now being offered for long-term leases. With the market holding strong and the population steadily rising, long-term rentals continue to provide investors with solid and recurring ROI.

What does this mean for the short-term rental market in Dubai?

As some landlords exit the short-term rental space, there may be concerns about the future of this segment. But in reality, the short-term rental market in Dubai will always exist. With global events, business travel, and consistent tourism, demand will naturally surge during certain times of the year-maintaining its relevance in the market.

How do I decide if I should put my property in the market for short-term or long-term rentals in Dubai?

While market demand is a major influence, other key factors-such as location, property type, and community-play a vital role in determining your property’s performance. To ensure the best ROI, it’s essential to assess the market, study trends, and align with the right investment strategy.

This is where our expert property consultants come in. With years of experience studying Dubai’s property market, Anarock Middle East delivers some of the most reliable and strategic real estate solutions in Dubai. From initial consultation to furnishing and managing your property, we offer end-to-end services at the most competitive rates in Dubai’s market.

Understanding your property and the market gives you clarity and confidence in choosing the best path forward. With informed decisions, you won’t have to worry about uncertainty-just transparency and trust. Contact us to share your requirements, or visit our offices. Let’s raise the standard of your investment in one of the world’s most dynamic property markets.