Dubai Short-Term Rental Calculator
Project holiday home / Airbnb revenue and net yield for any Dubai property.
How much does a Dubai Airbnb make in 2026?
A typical 1-bedroom Dubai Marina apartment rented as an Airbnb at AED 650/night with 75% occupancy generates approximately AED 178,000 annual gross revenue. After cleaning (~AED 10k), 22% management fee (~AED 39k), and STR-tier utilities (~AED 22k), net annual income is around AED 107,000 — roughly 7.1% net yield on an AED 1.5M apartment. That's about 30–40% higher than long-term rental yield in the same building.
Benchmarks for Dubai STR (2026)
Average daily rates (ADR) and occupancy by area, based on aggregate Airbnb/Booking.com data and major Dubai STR operators' published reports:
| Area | Unit type | ADR (AED) | Occupancy | Est. gross annual |
|---|---|---|---|---|
| Palm Jumeirah | 1BR luxury | 900–1,400 | 70–80% | 280–390k |
| Downtown Dubai | 1BR Burj-view | 600–900 | 78–85% | 190–270k |
| Dubai Marina | 1BR canal/marina | 500–800 | 75–82% | 160–230k |
| JBR | 1BR beachfront | 550–900 | 72–80% | 170–250k |
| Business Bay | 1BR | 400–550 | 68–75% | 110–150k |
| Bluewaters Island | 1BR | 700–1,000 | 75–82% | 200–290k |
| City Walk | 1BR | 550–800 | 73–80% | 160–230k |
| JVC | 1BR | 250–400 | 55–65% | 55–90k |
STR vs Long-Term Rental — head-to-head on AED 1.5M Marina 1BR
Long-term rental
Short-term rental (STR)
STR delivers a ~14% net-yield uplift on this Marina property — better but not the 2× that gross numbers suggest. In Palm Jumeirah or Downtown the gap is wider (often 20–30% net uplift). In JVC or Discovery Gardens, STR usually underperforms LTR.
STR licensing in Dubai (DTCM)
Holiday home rentals are regulated by the Dubai Department of Economy and Tourism (DTCM). You need a Holiday Home License per unit (AED 1,520 annual + service fees). Steps:
- Register the property under your name on the DTCM Holiday Home portal.
- Submit title deed + Ejari + Emirates ID + photos of all rooms.
- Pass DTCM physical inspection — fire safety, fully furnished, working appliances, smoke alarms, fire extinguisher.
- Receive license certificate (15 working days typical).
- Collect 10% Tourism Dirham from every guest (AED 7–15/night by tier) and remit quarterly.
Operators (Frank Porter, GuestReady, Maison Privée, etc.) can run the entire licensing + operations end-to-end for owners who don't want the admin work.
STR cost structure — what eats your margin
- Management fees (20–25% of gross revenue) — the largest single deduction.
- STR-tier utilities (2–3× LTR) — guests leave AC on, wash more.
- Cleaning (AED 100–200 per stay) — adds up at 70+ turnovers/year.
- Furniture replacement (~5% of furnishing cost annually) — STR wear is higher.
- Booking platform fees (Airbnb 3%, Booking 15% — usually absorbed by operator).
- DTCM license + tourism dirham collection — license AED 1,520/year, tourism dirham passed to guests but you handle remittance.
Compare against long-term: Rental Yield Calculator. Pair with the Dubai ROI calculator for full cash-on-cash including financing.
Dubai STR / Holiday Home — FAQ
Is short-term rental (STR) legal in Dubai?+
Yes. Dubai allows holiday home rentals under DTCM (Department of Economy and Tourism) licensing. You need a Holiday Home License (AED 1,520 + service fees) and must register each property. Sharjah and Abu Dhabi have separate frameworks; this calculator targets Dubai.
What is a good STR occupancy rate in Dubai?+
Dubai average STR occupancy is 65–75% annually. Premium areas (Marina, Downtown, Palm Jumeirah, JBR) run 75–85%. Peak season (Nov–Mar) can exceed 90% in tourist-corridor buildings. Summer months (Jun–Aug) drop to 50–60% for non-air-conditioned outdoor amenities.
How much does STR management cost in Dubai?+
Full-service STR management (cleaning, check-in, guest comms, listings, dynamic pricing) typically charges 20–25% of revenue. Premium operators (Frank Porter, Maison Privée, GuestReady) charge 22–28%. Self-managed STR saves costs but requires significant time — minimum 5–10 hours/month per unit.
STR vs long-term rental — which is more profitable in Dubai?+
STR can deliver 1.5–2× the gross income of long-term rental in premium tourist areas (Marina, JBR, Downtown). After management fees, utilities, higher wear-and-tear, and vacancy, net advantage is typically 20–40% — but with more operational work. STR underperforms in non-tourist areas like JVC or Discovery Gardens.
What is ADR (Average Daily Rate) in Dubai?+
ADR is the average nightly rate guests actually pay (revenue ÷ booked nights). Dubai ADRs by area in 2026: Palm Jumeirah AED 700–1,400, Downtown AED 600–900, Marina/JBR AED 500–800, Business Bay AED 400–550, JVC AED 250–350. ADR varies by season — winter months can double summer rates.
How do I get a Holiday Home License in Dubai?+
Apply through DTCM (Dubai Department of Economy and Tourism). Steps: (1) Register on the DTCM portal, (2) submit property title deed + Ejari + Emirates ID, (3) pay AED 1,520 license fee per unit (annual), (4) pass DTCM property inspection for amenities and fire safety, (5) collect 10% Tourism Dirham from guests on every booking.
Do I need to pay tax on STR income in Dubai?+
No personal income tax in the UAE on STR income for individual landlords. From June 2023, UAE corporate tax of 9% applies to entities with profits above AED 375k. STR through a company (LLC) above that threshold pays 9%. You also collect (not pay) 10% Tourism Dirham from guests, remitted to government quarterly.
How much higher are utility bills for STR vs long-term rental?+
STR utilities run 2–3× higher than LTR per month due to guests leaving AC on, washing more, charging devices, etc. Typical 1BR Dubai apartment: AED 600–900/month LTR vs AED 1,400–2,100/month STR. Most STR managers pass utilities to owners; some include a cap.
What are the best Dubai areas for STR in 2026?+
Top STR areas by net yield: Dubai Marina (waterfront + tourist visibility), JBR (beach-front), Downtown Dubai (Burj Khalifa proximity), Palm Jumeirah (luxury segment), Business Bay (corporate + tourists). Best avoided: JVC, Discovery Gardens, International City — low tourist demand makes STR underperform LTR.
Can I do STR on a mortgaged property?+
Yes, but some UAE banks include a "no STR" clause in their mortgage terms (Emirates NBD, HSBC have been stricter). Check your loan documents before listing. If not allowed, breaking the clause can trigger early-loan-recall in extreme cases. Most banks treat STR as fine as long as Holiday Home License is in place.
How long does it take to start STR in Dubai?+
From property handover to first booking: 4–8 weeks. License application + inspection takes 2–4 weeks. Furniture + setup another 2–4 weeks. Photography + listings 1 week. Total budget: AED 30,000–60,000 for full furnishing of a 1BR apartment.
What is the 10% Tourism Dirham in Dubai?+
The Tourism Dirham is a fee per night, per guest collected by holiday home operators and remitted to Dubai government. It scales by property tier: studio AED 7/night, 1BR AED 10/night, 2BR AED 15/night. Operators add this to guest invoices — it does NOT come out of your revenue.
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