January 2024

Holiday homes: find the best investment in Dubai on Airbnb

Letting out a property or properties through Airbnb can be a great way to make money and generate, essentially, passive income by choosing to work with a professional co-host. It’s fast, it’s new, and it is exhilarating. Financially speaking, letting properties on the short-term rental market can be a great way to maximise your return on investment, especially with a booming tourism market.

There are many investment opportunities in Dubai from fixer-uppers to new properties, all in the vicinity of tourist, business and relaxation spots. The city is attracting one of the highest numbers of visitors from around the world, and tourist numbers are only expected to rise.

So, when looking to buy a property with the goal of renting it out on Airbnb, how do you identify a property that will perform well as a holiday home rental and ensure you maximum rental yields?

 

What to look for when buying a property for short-term rental

 

 

1. Location, Location, location

Location is a significant factor to consider when renting properties on Airbnb. The most popular places rented in Dubai are near or in Downtown Dubai or Dubai Marina.

Other good spots for Airbnb are those near popular tourist locations, such as the KBmovers museum, or in semi-private areas where people can rest but also go out and enjoy themselves.

Before investing in a property for a short-let, check which transport links, tourist hot spots and business centres are nearby.

 

2. Appeal and Appearance

The properties that have the best results and achieve the most bookings through Airbnb Dubai are holiday homes with high visual appeal.

One of the most important factors influencing Airbnb customers to book property is the photos on the listing.

Great views, lots of light, and neatly styled homes can make all the difference. To ensure that the property is shown in the best light, we recommend working with a professional photographer.

 

3. Facilities

The facilities your property offers can make the difference between a guest choosing to book your property or another. Check to make sure the property offers the following key amenities as your guest will be checking for these:

  • Air Conditioning
  • Washing Machine
  • Dishwasher
  • Hairdryer
  • Iron and ironing board
  • Key to each bedroom so guests can lock their door

 

4. Benchmarking

Research the market, what properties are listed in the vicinity of the property that you are considering investing in? How much are they charging, what amenities do they offer, how is the property presented, etc.

By comparing your property against other listings will give you a good idea of what you can charge per night and calculate your potential rental yield.

If you are new to the short-term rental market, there is also a range of tools available to help you calculate the daily rental rate of your property.

 

Properties in Dubai that do well on Airbnb

 

Dubai Property - Balcony at sunset

 

We have put together information about properties, developments, and areas that tend to do well on Airbnb in Dubai. It’s a good idea to check out similar listings for yourself and to use the Airbnb search bar as a reference point as you look for what is working.

Here are some specific properties in excellent areas in Dubai:

 

Jumeirah Village Circle (JVC)

The JVC area of Dubai offers excellent rental yields, at 8.38% for a studio and 8.24% for a one-bedroom apartment. Situated at the heart of New Dubai, JVC is a family-friendly area close to many points of interest, restaurants, and shopping malls.

There are more than 30 landscaped parks within the JVC, and it is near Dubai Marina, Internet City, and Media City. More than 2,000 units in JVC comprise properties from studios to 5-bedroom villas.

This is an example of a GuestReady studio property doing well on Airbnb in JVC. The host has optimised the listing to show the property’s main selling points, including the stunning city-line view and access to the property’s gym and pool.

The photos are professionally done, showing the class and quality of the fittings within the apartment. It’s easy to see why it’s one of the most popular listings in the JVC area.

 

Downtown Dubai

Though the average property price in Downtown Dubai is expensive, this is a great place for a buy-to-let apartment at the heart of the action. Studios do well in Downtown Dubai, commanding an average rental yield of 6.79%.

Today, Downtown Dubai is a key cultural hub in the city, with attractions like Burj Khalifa, the Dubai Fountain, and the iconic Dubai Mall. As far as location is concerned, it doesn’t get better than Downtown Dubai, and you’re sure of bookings if you market your property well.

This Guest Favourite property at the heart of Downtown Dubai shows what’s possible from a listing in this part of town. Directly across from the Burj Khalifa and with a balcony view of Dubai’s premier attractions, it’s easy to see why guests want to stay here.

The property owner does a brilliant job of capturing this apartment’s USP, which is location, location, location.

 

Business Bay

Dubai’s Business Bay is a great place for property investors in Dubai, delivering yields of between 5.58% and 7.48%, depending on the property type. One-bedroom apartment owners can expect a yield of around 6.55% in this up-and-coming part of the city.

As its name suggests, the Business Bay is a central business district close to Downtown Dubai. As well as serving as a hub for professionals, the Business Bay is connected to the Dubai Metro’s Red Line so that you can visit other areas of the city easily.

The Business Bay is also home to the JW Marriott Marquis Dubai, the tallest hotel in the world with 77 floors.

Given the number of business travellers in this part of Dubai and the high rental yields, it’s a great place to opt for a holiday home for short-term rentals.

This GuestReady favourite property from an Airbnb Superhost is a great example of a top listing in the Business Bay area of the city. It comprises a compelling description and professional photos highlighting the property’s amenities, perks, and key selling points.

Attractive to both business travellers and tourists, this listing is a great example if you’re keen to invest in real estate for short-term rentals in one of Dubai’s business hubs.

 

Dubai Property Investment & Management

 

 

With an overview of the property market in Dubai and a better understanding of what works well on Airbnb. We have included a few useful links below to help you get set-up as a short-term rental in Dubai.

 

 

Statistics show that Airbnb apartments have an occupancy rate of 58% in Dubai, with sky-high revenues that make this iconic city one of the best places to invest in a holiday home.

You can use this article to find the best locations in the city to invest in a holiday home. We recommend JVC, Downtown Dubai, and Business Bay as three areas to look at, given their proximity to POIs and excellent rental yields.

Make sure you also read up on the regulations attached to short-term rentals in Dubai and understand the process of acquiring a DTCM Holiday Home Permit (link supplied above). We leave you with some FAQs to help you plan your Dubai holiday rental.

 

Airbnb Property Investment in Dubai FAQs

 

Is it worth doing Airbnb in Dubai?

Absolutely. Dubai is one of the most visited cities in the world, attracting more than 7 million tourists each year, alongside business travellers. Airbnbs in the city boast high occupancy rates and high potential yields are available. If you market your holiday home well, Airbnb is a great option for Dubai property owners.

 

Where is the best place to invest in an Airbnb in Dubai?

We think JVC is one of the best areas in Dubai for potential Airbnb owners. It offers average yields of 8.24% for one-bedroom apartments and relatively cheap purchase prices. It is centrally located, too, and close to many of Dubai’s biggest attractions, making it a viable choice for anyone looking for a Dubai holiday home.

 

Are holiday rentals taxed in Dubai?

Dubai – and the UAE generally – does not impose personal income tax on its residents. Therefore, if you earn income from a holiday rental while living in Dubai, you are not required to pay any tax on your earnings. If you live abroad, consult an accountant in your country about what it means for your tax situation.

 

What do I need to own an Airbnb in Dubai?

You must meet a couple of requirements before owning a holiday rental in Dubai. First and most importantly, you must obtain a permit from the Dubai Tourism and Commerce Marketing Department (DTCM). You can find out more about the permit application process via the link provided above.

 

Need help? Get in touch!

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