Dubai’s holiday homes and short-term rental market is experiencing unprecedented growth in 2025, cementing the city’s reputation as a global hub for travellers and property investors alike.
Figures released this year show a 35% increase in licensed short-term rental properties, with more than 22,000 fully licensed apartments and villas now operating across the emirate. The surge reflects booming demand from both tourists and investors, underpinned by strong regulation and high rental yields.
Dubai welcomed 1.94 million overnight visitors in January 2025, a 9% increase on the previous year. Popular districts including Downtown Dubai, JBR, Palm Jumeirah and Bluewaters Island are among the top choices for visitors, pushing occupancy rates and average daily revenues higher for licensed holiday homes.
The Dubai Department of Economy and Tourism (DET) has tightened oversight of the sector, requiring mandatory licensing, guest registration and data compliance. Officials say the measures ensure safety and reliability for guests while providing investors with confidence in the legitimacy of the market.
Short-term rentals in Dubai are offering some of the highest yields in the global property market. Data from prime areas such as JBR and Bluewaters Island show average monthly revenues of between AED 12,930 and AED 17,403 (£2,800–£3,700), with investors seeing lucrative returns compared to long-term leasing.
Industry experts say Dubai’s holiday home sector has matured into a regulated, transparent and highly profitable asset class, attracting both institutional and individual investors.
With global tourism on the rise and Dubai continuing to invest in its visitor economy, the emirate’s holiday homes market looks set to remain a standout performer in 2025 — offering travellers premium stays and investors high-yield opportunities.
