Dubai’s holiday homes market surges in 2025, offering licensed short-term rentals, high-yield investment, and premium stays for travellers.
Dubai’s holiday homes and short-term rental market is experiencing record growth in 2025, driven by increased tourism, investor interest, and regulatory support. The trend highlights Dubai as one of the most attractive destinations for both travellers and property investors seeking licensed short-term rentals.
Key Highlights of Dubai Holiday Homes Market 2025
Rapid Market Expansion: The number of licensed short-term rental properties in Dubai has grown by over 35% compared to last year, with more than 22,000 fully licensed apartments and villas now available for tourists, business travellers, and families.
Tourism Surge Fuels Demand: Dubai welcomed 1.94 million overnight visitors in January 2025, a 9% increase over 2024. This growth directly boosts demand for holiday homes and serviced short-term rentals across key areas including Downtown Dubai, JBR, Palm Jumeirah, and Bluewaters Island.
Stricter Regulations Ensure Safety & Compliance: The Dubai Department of Economy and Tourism (DET) has implemented robust rules for holiday homes, including mandatory licensing, guest registration, and data compliance, making Dubai a safe and reliable market for short-term rental investments.
Strong Investment Opportunities: High-yield returns make Dubai holiday homes attractive for investors. Popular areas like JBR and Bluewaters Island report average monthly rental revenues ranging from AED 12,930 to AED 17,403, making short-term rentals a lucrative addition to investment portfolios.