Short-Term Rentals in Dubai Compete with Hotels on Price

Dubai residents looking for staycations this summer are in luck, as hotels and short-stay rentals offer attractive rates. Hotels are providing per-night rates starting from Dh100, with some even lower. Short-stay apartments and villas are also competing, with daily rates ranging from $70 (Dh256) to $350 (Dh1,284), significantly lower than winter peak rates.

The abundance of short-stay rental options, with an estimated 40,000 units by the end of 2025, is driving down prices. New landlords are willing to offer lower rents to secure bookings and build positive customer ratings. This trend is influenced by the summer slowdown in tourism and corporate travel.

Property owners in the short-stay market face pressure to maintain occupancy, as low occupancy rates lead to financial losses. The focus during the summer shifts from maximizing rates to boosting occupancy and preparing for the upcoming busy season. Despite the current price drops, industry experts anticipate a strong rebound in rates during the peak season from September to January/early February.

Property owners considering rental options face the choice between one-year rentals and short-stay leasing. While one-year rentals are seeing rate stability, short-stay rents depend on the high-demand period. Ultimately, the emphasis for short-term rentals remains on maximizing occupancy to ensure profitability during the summer months.