Buying real estate in the UAE?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

How profitable are Airbnb rentals in the UAE? (2026)

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Authored by the expert who managed and guided the team behind the United Arab Emirates Property Pack

buying property foreigner The United Arab Emirates

Everything you need to know before buying real estate is included in our United Arab Emirates Property Pack

If you're thinking about running an Airbnb in the UAE in 2026, you're looking at a market that welcomed over 17.5 million tourists to Dubai alone by November 2025.

The short-term rental landscape is evolving fast, with new Abu Dhabi licensing requirements taking effect January 1, 2026, and Dubai maintaining its regulated holiday homes framework requiring both operator registration and per-unit permits.

In this constantly updated guide, we cover Airbnb profitability, legal requirements, and market competition in the UAE for 2026.

And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in the UAE.

Insights

  • Dubai's short-term rental market has over 57,000 listings, yet the top 10% of properties achieve occupancy rates above 86%, showing that quality matters more than market saturation.
  • The average nightly rate for an Airbnb in Dubai sits around AED 600 to 850 ($165 to $230 USD), but prime locations like Downtown Dubai and Palm Jumeirah regularly command rates above AED 1,000.
  • Abu Dhabi's DCT Circular No. 8/2025 requires all holiday home operators to be fully licensed by January 1, 2026, with fines up to AED 100,000 for non-compliance.
  • Dubai homeowners can register up to 8 holiday home units under the owner pathway; scaling beyond requires a trade license and operator registration.
  • Seasonality creates a 40 to 50% revenue swing between high season (October to April) and low season (June to August), with December and January being most lucrative.
  • The VAT registration threshold is AED 375,000 in taxable supplies over 12 months, which many multi-unit operators will exceed, requiring them to collect and remit 5% VAT.
  • One-bedroom apartments dominate the market at 68% of listings, yet 2-bedroom family-ready units often achieve higher total revenue per booking.
  • Professional property management costs 15 to 25% of gross revenue but achieves 15 to 20% higher occupancy rates, often making the fee worthwhile.
  • Dubai expects approximately 120,000 new residential units in 2026, which analysts predict will moderate price growth to 5 to 8% annually.
photo of expert jean-charles salvin

Fact-checked and reviewed by our local expert

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Jean-Charles Salvin 🇫🇷

Co-Founder, Best Dubai Condos

With over 13 years of real estate expertise, Jean-Charles co-founded BestDubaiCondos to help clients navigate the dynamic property market across the UAE. Whether it’s Dubai, Abu Dhabi, or any other thriving emirate, Jean-Charles is a trusted advisor for making smart, strategic property investments in the UAE. We spoke with him at the final stage of writing this blog posts and used his ideas to fix, expand, and personalize the content.

Can I legally run an Airbnb in the UAE in 2026?

Is short-term renting allowed in the UAE in 2026?

As of early 2026, short-term renting through Airbnb is legal in Dubai and Abu Dhabi when you follow emirate-level holiday homes regulations.

Dubai operates under Decree No. 41 of 2013, supervised by the Department of Economy and Tourism (DET), while Abu Dhabi uses the Department of Culture and Tourism (DCT) licensing system.

The key requirement is registering as a holiday home operator and obtaining a permit for each unit before listing on any platform.

Operating without proper licensing can result in fines up to AED 100,000 ($27,000 USD or €25,000 EUR) in Abu Dhabi, plus potential property closure.

For a more general view, you can read our article detailing what exactly foreigners can own and buy in The United Arab Emirates.

If you are an American, you might want to read our blog article detailing the property rights of US citizens in The United Arab Emirates.

Sources and methodology: we triangulated the primary legal text from the Dubai Legislation Portal with guidance from Dubai DET's registration page. We also reviewed DCT Abu Dhabi's official portal and combined these with our own analyses.

Are there minimum-stay rules and maximum nights-per-year caps for Airbnbs in the UAE as of 2026?

As of early 2026, the UAE does not impose a citywide "90-night cap" style rule, focusing instead on licensing, quality standards, and compliance.

These rules don't differ by property type or residency status at the emirate level, though individual buildings or HOAs may impose their own restrictions.

In practice, many hosts set 2 to 6 night minimums during peak season, while over 40% in Dubai target 30+ night stays for monthly income.

Sources and methodology: we reviewed materials from Dubai DET and DCT Abu Dhabi's Holiday Homes Manual. We cross-referenced with AirDNA Dubai data on actual minimum stay settings.

Do I have to live there, or can I Airbnb a secondary home in the UAE right now?

There is no primary residence requirement for operating an Airbnb in the UAE; you can legally rent out a secondary home or investment property.

Dubai's DET owner registration pathway is designed for homeowners registering units they don't live in, and Abu Dhabi's DCT framework similarly focuses on licensing the unit.

Requirements for secondary homes are identical to any holiday home: proper registration, unit permits, safety compliance, and tourism fee collection.

There is no regulatory distinction between renting your primary residence versus a secondary home in the UAE.

Sources and methodology: we reviewed requirements from Dubai DET's operator registration page and DCT Abu Dhabi's portal. We also consulted Airbnb's Dubai hosting guidance to confirm these requirements.

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housing market the UAE

Can I run multiple Airbnbs under one name in the UAE right now?

Yes, you can operate multiple Airbnb listings under one name in the UAE, but practical limits apply.

In Dubai, homeowners can register up to 8 holiday home units through DET's owner pathway before needing to shift into a formal operator model with a trade license.

Scaling beyond 8 units requires establishing a licensed company with vacation homes rental activity, involving additional setup costs and regulatory requirements.

Sources and methodology: we sourced the 8-unit limit from Dubai DET's registration guidance and verified through DCT Abu Dhabi's framework. We also consulted mr.alfred vacation rental software on scaling implications.

Do I need a short-term rental license or a business registration to host in the UAE as of 2026?

As of early 2026, yes, you need operator registration and a per-unit permit to legally host in Dubai and Abu Dhabi, with DCT Circular No. 8/2025 enforcing licensing from January 1, 2026.

The process involves registering through DET's online portal, uploading documents, paying registration fees, then applying for permits per unit.

Required documents include Emirates ID or passport, property title deed (or tenancy contract with landlord's NOC), recent DEWA bill, and property details.

In Dubai, registration costs approximately AED 1,520 ($415 USD or €380 EUR), with permit fees of AED 370 to AED 1,200 depending on unit size, renewable annually.

Sources and methodology: we obtained costs from Dubai DET's permit page and DCT Abu Dhabi's Circular No. 8/2025. We also reviewed mr.alfred's guide for current fee structures.

Are there neighborhood bans or restricted zones for Airbnb in the UAE as of 2026?

As of early 2026, there are no emirate-wide neighborhood bans for Airbnb in the UAE.

However, individual buildings, developers, and HOAs can restrict or prohibit short-term rentals even if emirate-level regulations allow them.

Dubai's Decree 41/2013 applies broadly, including special development zones and free zones, so being in a "special area" doesn't provide exemption.

The practical advice: verify building rules before purchasing, especially in dense tower communities where management may have anti-STR policies.

Sources and methodology: we reviewed Dubai's Decree No. 41 of 2013 regarding zone applicability. We also consulted DET's legislative library and our research on building-level restrictions.
infographics comparison property prices the UAE

We made this infographic to show you how property prices in the UAE compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

How much can an Airbnb earn in the UAE in 2026?

What's the average and median nightly price on Airbnb in the UAE in 2026?

As of early 2026, the average nightly rate in the UAE is AED 850 to 860 ($230 to $235 USD or €215 to €220 EUR), while the median is closer to AED 600 ($165 USD or €150 EUR) for typical studios and 1-bedrooms.

Roughly 80% of UAE listings fall between AED 450 and AED 1,500 ($120 to $410 USD or €110 to €380 EUR), with apartments at AED 550 to 750 and villas from AED 1,500 to over AED 6,000.

Location is the single biggest pricing factor, with Downtown Dubai, Palm Jumeirah, and Dubai Marina commanding 30 to 50% premiums over emerging areas.

By the way, you will find much more detailed profitability rent ranges in our property pack covering the real estate market in the UAE.

Sources and methodology: we aggregated pricing from AirDNA Dubai and Airbtics revenue data. We cross-referenced with AirROI's Dubai analysis and our own research.

How much do nightly prices vary by neighborhood in the UAE in 2026?

As of early 2026, nightly prices vary dramatically: Palm Jumeirah averages AED 1,200+ ($325 USD, €300 EUR) while JVC or Al Nahda averages AED 350 to 450 ($95 to $120 USD), a 3x to 4x difference.

The three highest-priced neighborhoods are Palm Jumeirah (AED 1,200 to 1,800), Downtown Dubai (AED 800 to 1,100), and Dubai Marina/JBR (AED 700 to 950).

The three lowest-priced are JVC (AED 400 to 550), Dubai Sports City (AED 350 to 500), and International City (AED 300 to 450); guests still choose these for value and longer stays.

Sources and methodology: we compiled neighborhood pricing from AirDNA Dubai and AirROI's neighborhood reports. We also referenced our neighborhood analysis.

What's the typical occupancy rate in the UAE in 2026?

As of early 2026, typical occupancy for UAE Airbnb listings averages 55% to 70%, with Dubai's market average around 60% including less-optimized listings.

The realistic range covering most listings is 45% to 75%, with well-managed prime apartments at the higher end and villas or weaker properties at the lower end.

Dubai ranks in the top 1% for occupancy among Middle East and North Africa markets.

The biggest factor for above-average occupancy is professional operations: listings with 4.8+ ratings and smooth self check-in achieve 15 to 20% higher occupancy.

Sources and methodology: we sourced benchmarks from AirDNA Dubai and Airbtics. We also reviewed Holiday Homes in Dubai's analysis.

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What's the average monthly revenue per listing in the UAE in 2026?

As of early 2026, average monthly revenue per UAE Airbnb listing is AED 13,000 to 17,000 ($3,500 to $4,600 USD or €3,200 to €4,300 EUR) for typical apartments.

The realistic range covering 80% of listings is AED 8,000 to AED 25,000 ($2,200 to $6,800 USD), with studios at the lower end and well-positioned 2-bedrooms at the higher end.

Top performers in prime locations achieve AED 30,000 to AED 100,000+ monthly. A well-managed 2-bedroom in Downtown Dubai with AED 900 ADR and 75% occupancy generates approximately AED 20,250 per month.

Finally, note that we give here all the information you need to buy and rent out a property in the UAE.

Sources and methodology: we calculated revenue using ADR × Occupancy × 30 nights with data from AirDNA Dubai. We validated against Airbtics and Dubai DET tourism data.

What's the typical low-season vs high-season monthly revenue in the UAE in 2026?

As of early 2026, high season (October to April) revenue ranges from AED 16,000 to AED 25,000 ($4,350 to $6,800 USD) for apartments, while low season (June to August) drops to AED 8,000 to AED 15,000 ($2,200 to $4,100 USD), a 30 to 50% swing.

Peak months are December and January due to pleasant weather, winter holidays, and the Dubai Shopping Festival; low season runs June through August when extreme heat drives down demand.

Sources and methodology: we derived seasonality from AirDNA Dubai and Dubai DET tourism reports. We also analyzed Reliant Surveyors' 2025 report.

What's a realistic Airbnb monthly expense range in the UAE in 2026?

As of early 2026, monthly expenses range from AED 3,000 to AED 7,000 ($820 to $1,900 USD) for self-managed apartments, and AED 6,000 to AED 15,000+ ($1,630 to $4,100+ USD) for professionally managed properties or villas.

The largest expense is typically cleaning and laundry at AED 600 to AED 2,500 monthly, followed by utilities (especially DEWA cooling charges in summer).

UAE hosts should expect 30% to 45% of gross revenue to go toward operating expenses.

If you want to go into more details, we also have a blog article detailing all the property taxes and fees in the UAE.

Sources and methodology: we compiled expenses from industry reports and AirDNA Dubai. We also reviewed UAE FTA guidance on VAT and DET information on Tourism Dirham.

What's realistic monthly net profit and profit per available night for Airbnb in the UAE in 2026?

As of early 2026, realistic monthly net profit ranges from AED 4,000 to AED 12,000 ($1,090 to $3,270 USD) for well-managed apartments, with profit per available night averaging AED 150 to AED 400 ($40 to $110 USD).

The range covering most listings is AED 3,000 to AED 15,000 monthly ($820 to $4,100 USD), with prime villas capable of AED 20,000 to AED 60,000+.

UAE hosts typically achieve net profit margins of 35% to 55% of gross revenue.

The break-even occupancy rate is approximately 35% to 45%, meaning 11 to 14 booked nights per month to cover costs.

In our property pack covering the real estate market in the UAE, we explain the best strategies to improve your cashflows.

Sources and methodology: we derived net profit by subtracting expenses from revenue using AirDNA Dubai and Airbtics. We validated against Reliant Surveyors' analysis.
infographics rental yields citiesthe UAE

We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UAE versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.

How competitive is Airbnb in the UAE as of 2026?

How many active Airbnb listings are in the UAE as of 2026?

As of early 2026, there are approximately 57,000 to 62,000 active listings in Dubai on Airbnb and Vrbo combined, while Abu Dhabi has around 4,800 to 5,000, making Dubai the dominant UAE market.

Listings have grown 5% to 8% year-over-year through 2025, continuing a multi-year trend driven by strong tourism and favorable holiday home regulations.

Sources and methodology: we obtained counts from AirDNA Dubai (57,141 properties) and AirDNA Abu Dhabi (4,853 listings). We cross-referenced with AirROI data.

Which neighborhoods are most saturated in the UAE as of 2026?

As of early 2026, the most saturated neighborhoods are Dubai Marina, Downtown Dubai, Business Bay, JBR, and JVC, all with high listing concentrations and intense competition.

These areas became saturated because they combine tourist appeal with dense tower developments, and were among the first to embrace holiday home activity after regulations were established.

Relatively undersaturated neighborhoods include Dubai Hills Estate, Al Furjan, Creek Harbour, and Abu Dhabi's Al Raha Beach and parts of Yas Island.

Sources and methodology: we identified saturation using AirDNA Dubai and AirROI's analysis. We also reviewed Savills' Q2 2025 report for emerging areas.

What local events spike demand in the UAE in 2026?

As of early 2026, main demand-spiking events include the Dubai Shopping Festival (December to January), New Year's Eve celebrations, the Formula 1 Abu Dhabi Grand Prix, and major exhibitions at ADNEC and Dubai World Trade Centre.

During peak events, bookings increase 20% to 40% and nightly rates jump 30% to 100%, with New Year's Eve and Abu Dhabi Grand Prix rates doubling or tripling.

Hosts should adjust pricing 30 to 60 days before major events, as booking lead times for these periods average 30+ days.

Sources and methodology: we analyzed event demand using Dubai DET tourism data and AirROI's lead time patterns. We also referenced AirDNA seasonality metrics.

What occupancy differences exist between top and average hosts in the UAE in 2026?

As of early 2026, top-performing hosts achieve 70% to 86% occupancy, with the top 10% maintaining 86%+ year-round through superior operations and dynamic pricing.

Average hosts achieve 44% to 60%, meaning top performers book 10 to 25 more nights monthly, translating to significantly higher revenue.

New hosts typically need 6 to 12 months to reach top-performer levels, assuming they invest in professional photos, competitive amenities, and responsive communication.

We give more details about the different Airbnb strategies to adopt in our property pack covering the real estate market in the UAE.

Sources and methodology: we derived tier breakdowns from AirROI's performance analysis and Holiday Homes in Dubai's research. We also reviewed AirDNA Dubai.

What amenities do nearly all competitors offer in the UAE right now?

Nearly all competitive UAE listings offer air conditioning, fast Wi-Fi, a fully equipped kitchen, and in-unit laundry as baseline expectations.

UAE-specific must-haves include smooth self check-in with smart locks, explicit parking information, blackout curtains, and a proper workspace for business travelers.

Properties with pool access, gym, high-floor views, and metro proximity command 15% to 25% higher rates.

Sources and methodology: we identified amenities using AirDNA Abu Dhabi and AirDNA Dubai. We also reviewed Airbnb's Dubai hosting standards.

Which price points are most crowded, and where's the "white space" for new hosts in the UAE right now?

The highest listing concentration is AED 400 to AED 800 ($110 to $220 USD), the mid-market studio and 1-bedroom segment where competition is fiercest.

Most crowded price points are AED 450 to 650 for studios and AED 600 to 900 for 1-bedrooms; white space exists at family-focused 2-bedrooms (AED 1,000 to 1,500) and genuine luxury (AED 2,000+).

New hosts can compete by focusing on family-ready 2-bedrooms with kid-friendly amenities, "business traveler perfect" 1-bedrooms near metro, or true luxury where operations match pricing.

Sources and methodology: we analyzed distribution using AirDNA Dubai and AirROI's tier analysis. We also referenced Reuters' Fitch outlook.

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What property works best for Airbnb demand in the UAE right now?

What bedroom count gets the most bookings in the UAE as of 2026?

As of early 2026, 1-bedroom apartments get the most bookings, accounting for 68% of all UAE Airbnb listings and capturing majority booking volume.

The breakdown: 1-bedroom at 68%, 2-bedroom at 22%, 3-bedroom at 6%, and 4+ bedroom at 4%.

One-bedrooms perform best because they hit the sweet spot of guest affordability, operational simplicity, and alignment with the dominant traveler profile of couples and business visitors.

Sources and methodology: we obtained bedroom distribution from AirDNA Dubai and AirDNA Abu Dhabi. We also reviewed Reliant Surveyors' 2025 report.

What property type performs best in the UAE in 2026?

As of early 2026, apartments and condos are the best-performing property type, offering optimal balance of 60% to 75% occupancy, manageable operations, and strong demand from leisure and business travelers.

Occupancy by type: apartments 58% to 70%, townhouses 50% to 60%, villas 45% to 60% with higher variability.

Apartments outperform because of easier operations, better transit alignment (especially Dubai's metro), and more consistent year-round demand versus seasonal villas.

Sources and methodology: we compared performance using AirDNA Dubai showing 95% entire home listings. We analyzed Airbtics' property type data and Reliant Surveyors' report.

What location traits boost bookings in the UAE right now?

In Dubai, key traits are metro proximity, walkability to major attractions, clear parking, easy building access with self check-in, and landmark views.

In Abu Dhabi, proximity to Yas Island (theme parks, F1), Saadiyat Island access, straightforward airport connections, and clear parking logistics matter most.

Across both emirates, beach access, pool facilities, or waterfront views command 20% to 40% higher rates, while complicated guest access consistently underperforms.

Sources and methodology: we identified factors using Dubai DET tourism data and AirDNA Dubai and AirDNA Abu Dhabi neighborhood performance.

What sources have we used to write this blog article?

Whether it's in our blog articles or the market analyses included in our property pack about the UAE, we always rely on the strongest methodology we can … and we don't throw out numbers at random.

We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.

Source Why it's authoritative How we used it
Dubai Legislation Portal - Decree No. 41 of 2013 It's the primary legal text from the Government of Dubai establishing the holiday homes framework. We used it to define holiday homes and legal operation requirements. We also used it to understand central versus building-level regulation.
Dubai DET - Holiday Home Operator Registration It's the official licensing workflow from Dubai's tourism regulator. We used it to confirm registration requirements, costs, and the 8-unit homeowner limit.
Dubai DET - Holiday Home Permit Application It's the official per-unit permit process showing required documents. We used it to list documentation needs and make compliance practical for first-time hosts.
Dubai DET - Tourism Performance Report Jan-Jun 2025 It's the official tourism statistics publisher for Dubai. We used it to ground demand in real visitor numbers and connect seasonality to tourism flows.
DCT Abu Dhabi - Holiday Homes e-service It's the official Abu Dhabi regulator's service page. We used it to confirm Abu Dhabi's active licensing framework and direct readers to official permits.
DCT Abu Dhabi - Holiday Homes Manual (PDF) It's the regulator's operating manual for holiday home activities. We used it to translate requirements into practical safety and compliance checklists.
DCT Abu Dhabi - Circular No. 8/2025 It's a formal regulatory circular with January 2026 enforcement dates. We used it to explain 2026 changes and why platform listing doesn't equal legal compliance.
UAE Federal Tax Authority - VAT Threshold It's the UAE's official tax authority documentation. We used it to state the AED 375,000 VAT threshold and explain when hosts become VAT-liable businesses.
AirDNA - Dubai STR Market Overview It's a widely used STR analytics provider with consistent methodology. We used it to estimate ADR, occupancy, and supply figures for Dubai market benchmarks.
AirDNA - Abu Dhabi STR Market Overview It's the same consistent dataset for direct UAE market comparison. We used it to estimate Abu Dhabi averages and identify baseline amenities.
Airbtics - Dubai Airbnb Revenue Data It's a specialized analytics platform with median performance metrics. We used it to obtain median rates and occupancy representing typical listings.
Savills Research - Dubai Residential Q2 2025 It's a major global real estate consultancy with institutional credibility. We used it for macro drivers like population growth and supply pipeline affecting STR feasibility.
Cavendish Maxwell - Dubai H1 2025 It's a respected regional real estate research firm. We used it to triangulate price and rent momentum with supply context.
Reuters - Dubai Real Estate Outlook (Fitch) It's a top-tier wire service citing a major ratings agency. We used it as a risk scenario for 2026 pricing pressure and conservative underwriting.
The National - UAE Prices 2026 Outlook It's a respected regional outlet with access to analysts and officials. We used it to frame 2026 expectations and 120,000 unit delivery impact.
Gulf News - Dubai 17.5M Visitors 2025 It's a leading UAE news source with direct access to official data. We used it to confirm 17.55 million visitors through November 2025.
AirROI - Dubai STR Analysis It's a specialized STR investment analytics platform. We used it to understand top-performer versus average-host gaps and pricing tiers.
Reliant Surveyors - Dubai Airbnb 2025 It's a professional surveying firm with STR-specific research. We used it to validate seasonality and property type performance differences.
Airbnb - Dubai Hosting Guidelines It's official Airbnb guidance on platform and local requirements. We used it to cross-reference regulations with platform policies.
Dubai Land Department - RPPI It's the official residential price index from Dubai's property authority. We used it to anchor purchase price reality and assess yield compression risks.
infographics map property prices the UAE

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the UAE. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.