Hurricane of short-term rentals: Dubai's expatriates reap gains from Airbnb's surge, boosting their earnings
In the vibrant city of Dubai, the short-term rental market is becoming increasingly competitive, with service, reviews, and pricing strategy playing a crucial role. Dubai's status as a global tourist hub makes it an attractive destination for short-term rentals, according to industry experts.
Younger residents like Cheyne Hogan, a 23-year-old from the UK, and Mohammed, a Dubai-based finance worker, have turned to Airbnb as a new source of income. Mohammed, who dreams of becoming an Airbnb "superhost," runs his side hustle alongside a 9-to-5 job. Cheyne, on the other hand, came to Dubai with no job or plan and now manages nearly 10 Airbnb properties.
However, the road to becoming a successful Airbnb host in Dubai is not without its challenges. Compliance is the biggest hurdle, requiring an understanding of rules, working with building security and management, dealing with cleaners, and handling guest expectations.
To start an Airbnb rental in Dubai, the first step is registering with Dubai's Department of Economy and Tourism (DET) and applying for a holiday home licence. This is followed by signing a tenancy contract or purchasing a property, obtaining a no-objection certificate (NOC) from the building management, and furnishing the apartment to guest-ready standards.
Furnishing an Airbnb rental can be costly, but investing in good furnishings can help save money in the long run. For instance, Mohammed rented a studio in Jumeirah Village Circle for around Dh61,000 annually and spent approximately Dh26,000 on furnishing, appliances, and décor.
The demand for short-term rentals is strong in tourist-heavy areas like Dubai Marina, Downtown, and Palm Jumeirah, with returns potentially exceeding long-term rental income by 20 to 30 per cent. In peak season, hosts like Mohammed can earn between Dh7,000 and Dh9,000 a month on their Airbnb rental unit, with summer being slower but overall returns being higher than long-term rent.
Those who treat short-term rentals as a business do well, while those who view it as passive income often face disappointment, according to property consultant Amir Shihab. To help others navigate the Airbnb business, Cheyne Hogan runs a TikTok page, @airbnbdiariesdxb, where she shares tips and insights and offers one-on-one guidance calls.
In Dubai, some residents are even buying properties specifically for short-term rentals. Despite the challenges, the allure of additional income and the potential for high returns continues to attract many to the short-term rental market in Dubai.
