Dubai Airbnb Market Analysis– 2025

A comprehensive snapshot of Dubai’s short-term rental market performance in 2025 featuring key indicators including rising tourism demand, strong occupancy levels, resilient pricing trends, and updated investment benchmarks across Dubai’s prime and emerging residential destinations.

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Dubai Hospitality Market Overview

Years Occupied Room Nights (in Million) Growth Rate (%)
Jan to Sep 2025 32.7% 5%
Jan to Sep 2024 31.28% 5%
Years Revenue per Available Room AED Length of Stay (Nights)
Jan to Sep 2025 401 3.6
Jan to Sep 2024 372 3.6
Years Average Daily Rate (AED) Growth Rate (%)
Jan to Sep 2025 509 5%
Jan to Sep 2024 487 5%

Things That Matter This Quarter – Q3 2025

  1. Dubai welcomed 13.95 million overnight visitors between January and September 2025, marking a 5% increase compared to the same period in 2024.
  2. Room demand rose 5% YoY, driven by solid tourism fundamentals and business travel rebound.
  3. Average stay remained stable at 3.6 nights, balancing leisure and corporate travel.
  4. ADR (+5%) and RevPAR (+8%) growth outpaced inflation, highlighting strong pricing power and profitability.
  5. Occupancy improved to 79% (from 76% in 2024), reflecting efficient absorption of existing room supply.
  6. Western Europe leads arrivals (21%), supported by winter tourism and strong air connectivity.
  7. GCC and South Asia markets (31% combined) continue to drive repeat and regional travel demand.
  8. CIS, MENA, and East Asia contribute to a well-balanced visitor mix, reducing regional dependence.

Demand and Supply

Categories Number of Establishments Total Available Rooms Supply to the % of Inventory Average Occupancy
5 Star 169 54,316 36% 77%
4 Star 194 43,219 28% 79%
1-3 Star 276 29,294 19% 79%
Hotel Apartment (Deluxe/Superior) 81 14,054 9% 81%
Hotel Apartment (Standard) 99 11,459 8% 82%
2025 Sep 819 152,342 100% 79%
2024 Sep 826 152,048 76%
  • The hotel inventory remained stable year-on-year (819 vs 826 in 2024), reflecting measured supply control amid growing demand.
  • 5-star hotels lead in supply share (36%), reinforcing Dubai’s luxury hospitality positioning, while maintaining healthy 77% occupancy.
  • Mid-scale (4-star) and budget (1–3 star) segments together account for nearly half of total rooms, balancing affordability with accessibility.
  • Hotel apartments (17% of supply) show the highest occupancy levels (81–82%), underscoring growing demand for extended and family stays.
  • Overall market occupancy at 79% demonstrates efficient capacity utilization, an indicator of a mature, well-balanced hospitality ecosystem.

Key Dubai Airbnb Performance Metrics Overview

Metrics AED
Avg. Daily Rate (ADR) AED 992
Occupancy Rate 45.80%
Median Annual Revenue AED 111,673.4
Revenue Growth YoY 36.10%
Peak Revenue Month December
Lowest Revenue Month September
STR Regulation Level High
Active Airbnb Listings 13,884
Average Daily Rate (ADR) Trend by Month in Dubai
  • Dubai’s STR sector grew 36% YoY, supported by tourism rebound and event-led demand.
  • Despite a highly regulated market, listing activity remains strong, showing investor confidence.
  • Median annual earnings per host (AED 111K) indicate healthy yields in comparison to global STR markets.
  • ADR approaching AED 1,000 positions Dubai as a premium short-term stay destination.
  • Review scores above 4.8 correlate with 20–25% higher annual revenue.
  • Mid-priced units (AED 700–1,200 per night) achieve the best occupancy and ROI balance.
  • Tech integration (smart locks, dynamic pricing) significantly improves guest satisfaction and yield.
Average Monthly Airbnb Earnings Trend in Dubai
Average Monthly Occupancy Rate Trend in Dubai

Revenue fluctuation is less steep than occupancy, indicating that hosts are able to mitigate periods of lower occupancy through higher ADRs during peak demand months.

Operational optimization strategies, including minimum stay adjustments and targeted seasonal promotions, can materially lift returns during mid-year demand dips.

Tourism calendar dependency remains evident, with December, January, and March emerging as the most lucrative months for STR performance across Dubai.

Overall, the curve reflects a mature market structure rather than volatility, demonstrating predictable seasonal cycles that support informed decision-making for investors and asset managers.

Impact of Seasonality on the Airbnb Market

Metrics USD AED
Peak Season (Dec, Feb, Jan)
Revenue Averages 5,439 19,975
Occupancy Rates 53.40% 53.40%
Daily Rates Average 321 1,179
Shoulder Season
Revenue Averages 4,003 14,701
Occupancy Rates 49.90% 49.90%
Daily Rates Average 270 992
Low Season (July, August, September)
Revenue Averages 2,263 8,311
Occupancy Rates 38.70% 38.70%
Daily Rates Average 213 782
  • December–February delivers the highest occupancy (53%), reflecting winter tourism and event season.
  • Summer months (Jul–Sep) see ~15% occupancy decline, as heat and lower travel volumes impact short stays.
  • Price optimization during low season (ADR down to AED 782) helps sustain revenue flow.
  • Overall seasonal gap remains below 20%, highlighting Dubai’s growing year-round appeal driven by global connectivity and MICE events.
Key Observations
  • Nearly all listings (95%) are entire units, reinforcing Dubai’s privacy-oriented rental preference.
  • Minimal shared or private room listings (<5%) highlight the premium positioning of Dubai’s Airbnb market versus budget-sharing economies.
  • The dominance of full-unit rentals suggests a professional hosting environment, catering to tourists and short-term corporate travelers.
  • This structure enhances yield potential but also indicates higher regulatory and maintenance standards required for hosts.
Distribution of Listings by Number of Bedrooms and Composition
Listing Type Split
Property Type Split
Listings by Guest Capacity
  • Studio and 1BR formats yield highest occupancy rates and best per-night ROI.
  • 2–3 BR units, though fewer, deliver higher total revenue per booking due to family/group demand.
  • Suggests investors balance portfolios between volume-driven small units and high-ticket large units.
  • Over 70% of guests are under 35, indicating a youth-dominated user base.
  • Gen Z travelers prioritize affordability, centrality, and experience-oriented stays.
  • Millennials remain key drivers of repeat bookings.
  • The trend supports investing in modern, tech-enabled apartments over traditional villas.
Composition of Guests by Age Group
Pre-1950s (Silent Gen) 3.30%
1960s (Boomers) 2.70%
1970s (Gen X) 7.40%
1980s (Millennials) 15.40%
1990s (Older Gen Z) 21.30%
Post-2000s (Gen Z/Alpha) 50%

Top Performing AirBnB Hosts in Dubai

Host Name Properties Grossing Revenue (in AED) Stay Reviews Avg Rating
Deluxe Holiday Homes 557 55,444,585 3451 4.25/5.0
Vacationer 286 36,794,877 2938 4.82/5.0
Mint Stay 107 33,610,786 1382 4.78/5.0
First Class 107 31,420,136 3840 4.88/5.0
LUX Holiday Home 111 29,799,289 2732 4.76/5.0
First Class 102 23,149,938 4620 4.88/5.0
Suitable 140 21,388,284 2131 4.68/5.0
Irina GoodStay 78 20,986,013 3309 4.91/5.0
Elite Royal Apartments 41 18,219,478 2285 4.66/5.0
Alexander / GUESTA 93 17,287,669 2166 4.70/5.0
Key Areas for AirBnB Investments
Downtown Dubai
Dubai Marina
Jumeirah Beach Residences
Palm Jumeirah
Al Fahidi Historical Neighbourhood
Dubai Healthcare City
Bur Dubai
City Walk
  • Central and waterfront districts continue to outperform emerging zones.
  • Bur Dubai and City Walk show growing mid-term rental potential (1-3 month stays).
  • Location diversification is key for stable annual occupancy.
  • Top 10 operators manage a large share of total listings, a move toward professionalized hosting.
  • Deluxe Holiday Homes leads in volume; Irina GoodStay leads in guest satisfaction (4.91/5).
  • Brand consistency and guest service quality are strong differentiators in the competitive STR market.