Short Term Rental ROI in Dubai: Real Numbers for 2026

Short term rental ROI Dubai remains one of the most searched topics among property investors in 2026. With rising property prices and strong tourism demand, many owners want to know whether Airbnb-style rentals truly deliver higher returns than traditional long-term leasing.

In this guide, we break down real numbers, operating costs, and net yield comparisons so you can calculate realistic return on investment for your property.

What Is Short Term Rental ROI Dubai and How Is It Calculated?

Return on Investment measures how much income your property generates compared to its purchase price.

Basic ROI formula:

Annual Net Income ÷ Property Purchase Price × 100

Example:

If a property costs AED 1,500,000
And generates AED 150,000 net annually

ROI = 10%

Short-term yield varies significantly depending on:

• Management quality
• Location
• Property type
• Occupancy rate
• Management quality

Real Short Term Rental ROI Dubai Example: 1 Bedroom in Marina

Property Purchase Price: AED 1,400,000

Long-Term Rental Scenario

Annual Rent: AED 120,000
Minimal expenses

Estimated Net: AED 115,000

ROI: ~8.2%

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Short-Term Rental Scenario

Annual Gross: AED 240,000

Expenses:

• Cleaning: AED 25,000
• Utilities: AED 12,000
• Maintenance: AED 10,000
• Management (20%): AED 48,000

Estimated Net: AED 145,000

Short Term Rental ROI Dubai: ~10.3%

That’s a 2%+ yield difference in prime areas.

For area-specific breakdowns, see:
👉 Airbnb Income Dubai Marina

Rental Yield Comparison by Area in Dubai

Dubai Marina

Estimated ROI: 9–11%

Downtown Dubai

Estimated ROI: 8–10%

Business Bay

Estimated ROI: 9–11%

Palm Jumeirah

Estimated ROI: 7–9% (higher capital value, strong luxury returns)

Each area has different price-to-income ratios.

For a full market overview, read:
👉 How Much Can You Earn from Airbnb in Dubai?

What Impacts Short Term Rental ROI in Dubai?

1. Purchase Price vs Income Ratio

Buying below market value increases yield immediately.

2. Occupancy Rate

Properties maintaining 75%+ occupancy perform best.

3. Dynamic Pricing

Manual pricing reduces potential revenue.

4. Professional Management

Optimized listings often outperform self-managed units.

5. Interior Presentation

Modern, hotel-style units achieve stronger nightly rates.

Even small improvements can increase annual ROI by 1–2%.

Hidden Costs That Reduce Dubai Airbnb ROI

Short-term rental ROI in Dubai is affected by:

• DTCM registration fees
• Tourism Dirham compliance
• Cleaning and laundry
• Utility bills
• Maintenance reserve
• Platform service fees

All short-term rentals must comply with Dubai holiday home regulations issued by the Dubai Department of Economy and Tourism.

Ignoring expenses can lead to unrealistic ROI projections.

Is Dubai Short-Term Rental ROI Sustainable in 2026?

Dubai benefits from:

• Growing tourism numbers
• Global investor demand
• Tax-free rental income
• Continued infrastructure development

While competition has increased, demand remains strong in prime communities.

ROI sustainability depends on choosing the right building and pricing strategy.

Short-Term Rental Yield vs Long-Term Rental in Dubai

Long-term rental:

• Stable
• Lower effort
• Lower ceiling

Short-term rental:

• Higher potential yield
• Slightly more volatility
• Higher operational involvement

For full comparison, see:
👉 Holiday Home vs Long Term Rental in Dubai

Final Verdict: Is Short Term Rental ROI in Dubai Worth It?

In prime locations, short-term rental typically generates 1–3% higher yield compared to long-term leasing.

However, success depends on:

• Accurate forecasting
• Building selection
• Professional management
• Cost control

Before investing or switching strategies, calculate projected ROI based on your specific unit.

Casa Elan operates on an 80/20 revenue share model — aligning our success with yours.