Dubai’s tourism sector is booming, with visitor numbers surpassing pre-pandemic levels. This has led many landlords to ask: Should I switch to holiday homes?
The Holiday Home (Short-Term) Advantage
Properties in tourist hotspots like Downtown, JBR, and Palm Jumeirah can generate 20-30% higher gross revenueas short-term rentals compared to yearly leases.
- Flexibility: Owners can use the property themselves when it’s not booked.
- Dynamic Pricing: You can raise rates during peak seasons (New Year’s Eve, Formula 1, GITEX).
The Long-Term (Annual) Stability
While the returns are slightly lower, long-term leasing offers consistency.
- Lower Costs: No DEWA (utilities) or internet bills to pay; the tenant covers these.
- Passive Income: Once the lease is signed, your involvement is minimal compared to the daily management of a holiday home.
The Regulatory Landscape
Dubai’s DET (Department of Economy and Tourism) has strict but clear guidelines for holiday homes. You must register your unit and adhere to quality standards.
Key Takeaway: If your property is in a prime tourist hub and you can manage the turnover (or hire an agency), short-term is the winner. For suburban family communities (like Mira or Arabella), long-term remains the king.
