On the numbers we measured, a typical professionally run holiday home in Dubai leaves the owner less per year after costs than the average long-term asking rent in every zone, and so does the top quarter in every zone shown. A holiday home still makes sense if you want to use the home yourself, keep the freedom to sell or move in, or your unit performs in the top quarter. Get a free estimate that compares both for your unit.
The numbers, stated plainly
Gross revenue is the headline figure on most holiday home pages, but it is not what an owner keeps. The table takes the median and the upper quartile (p75) for professionally run units, deducts costs, and sets the result next to the average long-term asking rent for the same unit type. The method: gross revenue, less 15.5 % platform commission, less a 20 % management fee (a neutral example, the mid-point of the 15-25 % market range), less utilities of AED 1,300 a month for a 1-bed and AED 1,800 for a 2-bed, less consumables at 4 % of gross. Building service charges are excluded, since the owner pays them under either model. All amounts are AED a year, rounded to the nearest AED 1,000.
| Area | Unit | Median gross | Owner net, median | Owner net, top quarter | Long-term asking rent |
|---|---|---|---|---|---|
| Dubai Marina | 1-bed | AED 131,000 | AED 68,000 | AED 86,000 | AED 102,000 |
| Dubai Marina | 2-bed | AED 162,000 | AED 81,000 | AED 112,000 | AED 156,000 |
| Downtown Dubai | 1-bed | AED 150,000 | AED 80,000 | AED 100,000 | AED 133,000 |
| Downtown Dubai | 2-bed | AED 220,000 | AED 118,000 | AED 143,000 | AED 223,000 |
| Business Bay | 1-bed | AED 112,000 | AED 56,000 | AED 66,000 | AED 104,000 |
| Business Bay | 2-bed | AED 181,000 | AED 94,000 | AED 125,000 | AED 148,000 |
| Palm Jumeirah | 1-bed | AED 146,000 | AED 77,000 | AED 93,000 | AED 169,000 |
| Palm Jumeirah | 2-bed | AED 209,000 | AED 111,000 | AED 135,000 | AED 249,000 |
| Dubai Hills Estate | 1-bed | AED 118,000 | AED 59,000 | AED 68,000 | AED 107,000 |
Sources: AirDNA market data, 12 months October 2025 to September 2026, converted from USD at the fixed rate of AED 3.6725. Asking rents are the average asking rent in dubizzle Market Report H1 2026. Dubai Hills Estate is shown for the 1-bed only. JLT and Al Barsha South are not shown because we have no asking rent for them.
The result is plain. In every zone shown, the median owner net is below the average asking rent. The top quarter is below it in every row too: for example, a Palm Jumeirah 2-bed in the top quarter nets AED 135,000 against an asking rent of AED 249,000. The asking rents themselves are before the agency fee (typically a single payment) and before any months the home sits empty, and achieved rents can be lower than asking. That narrows the gap; by how much depends on the building and the tenancy.
The gap is smallest for two unit types. For a Dubai Marina 1-bed and a Business Bay 2-bed, median owner net is about two thirds of the asking rent, and the top quarter reaches about 84 %. It is widest in Palm Jumeirah, where rents are highest. AirDNA estimates revenue from Airbnb and Vrbo listings. Nights sold through Booking.com or direct bookings are not always captured, so multi-channel operators can earn more than these figures; we do not know by how much, so we do not assume it.
When a holiday home still makes sense
The numbers above are one side of the decision. Several reasons can still point to a holiday home.
- You want to use the home yourself. A 12-month tenant means you cannot stay for some weeks a year. A holiday home lets you block dates.
- You want flexibility. With no tenancy in place, you can sell, or move in, without waiting for a lease to end.
- The unit is already furnished. Furnishing to holiday-home standard is an up-front cost; our estimate is AED 35,000-50,000 for a 1-2 bed starting from empty. If the home already carries that cost, the comparison is more favourable.
- The unit performs in the top quarter. The upper-quartile column above shows how much that moves the result. Location, view, floor and condition all matter.
- The unit type has the smallest gap. Dubai Marina 1-beds and Business Bay 2-beds are closest to the long-let figure in our data.
If none of these applies to you, a long let is likely to pay more on these numbers, and we would rather say so. Our estimate compares both options for your unit. If a long let pays you more, we will tell you.
Costs to include
- Platform commission. Airbnb and Booking.com typically take 15-18 % of the booking value; it varies by plan and channel.
- Management fee. Roughly 15-25 % for full service. Compare operators on what is included; see Airbnb management fees in Dubai.
- Utilities. DEWA, district cooling where applicable, internet and TV: our estimate is roughly AED 1,300 a month for a 1-bed and AED 1,800 for a 2-bed when run as a holiday home. It varies by building.
- Consumables and small maintenance. About 4 % of gross revenue (our estimate).
- Service charges. Paid by the owner in either model, and they vary widely by building.
- Furnishing. AED 35,000-50,000 for a 1-2 bed from empty (our estimate).
- Permits and insurance. Every unit needs a DET permit and the operator needs liability insurance. Permit and licence fees were waived under a 2026 support package; check the current position with DET.
Rules in brief
- Nobody may carry on holiday home rental activity in Dubai without a licence from DET (Executive Council Decree No. 41 of 2013, art. 3). The official site is dubaidet.gov.ae.
- An operator needs Initial Approval, then the licence, then a permit for each unit. The permit number must appear in each advert with the operator's approved trade name (Administrative Resolution No. 1 of 2020, art. 14).
- The fine for operating without a licence is AED 5,000, and without insurance AED 2,000 (Executive Council Resolution No. 49 of 2014, Annex 2).
- Many buildings and owners' associations restrict holiday homes or require a no-objection certificate. Check with the building and, if the property is mortgaged, with the bank.
- For tax on rental income, speak to a tax adviser in your country of residence. We do not give tax advice.
Decision checklist
- Do I want to use the home some weeks a year? If yes, that favours a holiday home.
- Is my unit a Dubai Marina 1-bed or a Business Bay 2-bed, or in the top quarter for its area? If yes, the gap to a long let is smaller.
- Is the home already furnished to holiday-home standard?
- Does the building allow holiday homes, and does my bank?
- Have I asked for the management fee, the fee base, set-up costs and minimum term in writing?
- Can I accept a lower and more variable annual income in return for flexibility?
For area detail see income by area and the Dubai overview. We are launching in Dubai with a DET-licensed operating partner; our own operator licence is in progress, and we do not operate homes in Dubai ourselves today.
Frequently asked questions
Is a holiday home in Dubai more profitable than a long let?
On the numbers we measured, no: after costs, a typical professionally run unit leaves the owner less than the average long-term asking rent in every zone shown, and the top quarter is below it as well. Reasons to choose a holiday home are mainly flexibility and personal use.
Which units come closest to long-let income?
A Dubai Marina 1-bed and a Business Bay 2-bed. In our worked example, median owner net is about two thirds of the asking rent and the top quarter reaches about 84 %.
What costs does a holiday home owner pay in Dubai?
Platform commission, the management fee, utilities, consumables and small maintenance, building service charges, and furnishing if starting from empty. Each unit also needs a DET permit and the operator needs liability insurance.
Are the long-term rents real or asking figures?
They are average asking rents from the dubizzle Market Report H1 2026, before the agency fee and void periods. Achieved rents can be lower than asking, which narrows the gap to a holiday home.
Do I need a licence to rent out my apartment short term?
Yes. Holiday home rental activity needs a DET licence, and each unit needs its own permit. Owners can appoint a DET-licensed operator or check the options with DET at dubaidet.gov.ae.
Sources
- AirDNA market data, 12 months October 2025 to September 2026, converted from USD at the fixed rate of AED 3.6725.
- dubizzle Market Report H1 2026, average asking rent by area and bedrooms.
- Department of Economy and Tourism (DET), Dubai: dubaidet.gov.ae.
- Executive Council Decree No. 41 of 2013; Executive Council Resolution No. 49 of 2014; Administrative Resolution No. 1 of 2020.
- Dubai Media Office announcement of 21-05-2026 on the support package.
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