- Affordable Areas for Monthly Short-Term Rental Apartments
- Luxury Areas for Monthly Short-Term Rental Apartments
- Affordable Areas for Daily Short-Term Rental Apartments
- Luxury Areas for Daily Short-Term Rental Apartments
- Popular Areas for Monthly Rental Villas
Since Dubai is a business and tourist hub, short-term rentals have always garnered interest. These properties are generally located near popular amenities, facilities and tourist attractions. Moreover, individuals and groups on business visit rent apartments or villas for daily or monthly stays.
In this Dubai Short-term Rental Property Market Report 2023, we’ve covered insights into the popular communities for affordable and luxury short-term rentals. Also, we discuss the daily and monthly asking rent and facilities that make these areas a top choice for tourists, travellers, event attendees and digital nomads.
As per the user trends on dubizzle, monthly and daily rent of short-term rental properties in some areas has increased. On the contrary, a few neighbourhoods have shown a price decrease due to the addition of new properties and ready projects available as short-term rentals.
Here are the key highlights covered in this report according to the 2023 Dubai short-term rental property market trends.
- In 2023, International City, JVC and Deira have shown a moderate increase in rent as popular neighbourhoods for monthly short-term rental flats.
- Meanwhile, luxury neighbourhoods have seen a slight drop in monthly rental apartments compared to 2022.
- Al Barsha has received a 5.94% uptick in daily rental apartments, whereas other top areas with non-luxury flats for daily short-term rental have seen a drop in average rent.
- Apartments in Downtown Dubai stand out with a soaring increase of 17.98% in daily rent.
- In the popular monthly short-term rental villas, DAMAC Hills 2 and Palm Jumeirah remained the consistent choice in the affordable and luxury categories, respectively.
- Monthly rent in DAMAC Hills 2 and Palm Jumeirah have dropped 9.05% and 1.25%, respectively.
As we move into 2024, let’s take a detailed look at how the short-term rental market in Dubai has fared in 2023.
MOST POPULAR AREAS FOR AFFORDABLE AND LUXURY MONTHLY RENTAL APARTMENTS IN DUBAI
In 2023, the short-term rental market in Dubai has witnessed a drop in asking rent. To attract tourists and business travellers post-COVID, the Dubai Economy and Tourism Authority (DET) took initiatives regarding the tourism industry. Besides, the regulations, such as obtaining a holiday home permit, further regularised the market.
In 2023, the supply of monthly and daily short-term rentals also increased, catering to the rising demand. Moreover, the total available rooms have increased to 149,685, which is 20% more than in 2019 as per the tourism performance report for January to November 2023 by DET.
After the increase in short-term rentals, the asking rent decreased. This decline in rent has continued since Q1 2023.
That said, many investors chose to offer their apartments and villas as holiday homes in Dubai. These became some of the reasons for a drop of 4.55% in the average monthly asking rent overall. However, Dubai, a tourist hub, continued flourishing with more tourists, business individuals and digital nomads arriving in the country.
Let’s go through the most popular areas for affordable and luxury monthly rental apartments in 2023 and the asking rent according to the listings and user trends on dubizzle.
TOP NEIGHBOURHOODS FOR AFFORDABLE MONTHLY RENTALS
Overall, the asking rent in the short-term rental market has dropped amid rising holiday homes and the influx of tourists. That said, affordable monthly rental apartments have shown an opposite trend, with a slight increase of 1.17% in the asking monthly rent.
Let’s explore the popular neighbourhoods and their price trends for short-term monthly rental apartments in Dubai.
International City
A mixed-use community, International City has stood at the top among the user’s preferences for affordable short-term rentals. Contrary to the overall decrease, monthly short-term rental apartments in International City have shown a moderate increase of 5.14% in rents.
Moreover, the location of International City is quite convenient. As one of the popular areas to rent flats near Global Village or buy them, the monthly asking rent in this area has averaged AED 3,007 in 2023, compared to AED 2,860 in 2022.
- With a nominal increase of 2.45%, the studio flats for monthly short-term rent in International City have an average rental value of AED 2,714.
- The short-term rental 1-bedroom flat has also witnessed a 2.72% increase, taking the rental price to AED 3,697 per month.
- On the contrary, the monthly rent for 2-bedroom apartments has averaged AED 6,125, depicting a 5.77% drop from the previous year.
Jumeirah Village Circle (JVC)
JVC is home to several high and mid-rise residential buildings. With top amenities and facilities, JVC is among the popular areas for renting affordable apartments.
Additionally, several complete projects have added to the neighbourhood’s rising popularity. Jumeirah Village Circle have been one of the few areas with a rise in asking rent. After an uptick of 2.03%, the average rent for monthly rental apartments in JVC has inclined to AED 7,103.%.
- During 2023, the rent for monthly studio rentals in JVC has averaged AED 5,647, showing a nominal increase of 2.60
- Compared to last year, the average rent for 1-bed monthly short-term rentals has also increased to AED 7,849.
- On the contrary, 2-bed short-term rentals have seen a nominal decrease of 1.91% to AED 10,567.
Bur Dubai
Bur Dubai is one of the oldest neighbourhoods in the city. It is home to souks and several historic attractions, such as the Dubai Museum and Saeed Al Maktoum House. Plus, one can take an Abra from Bur Dubai to another old area, Deira or visit the other parts of Dubai via Metro.
As per the monthly rentals listing on dubizzle, the asking rent in Bur Dubai has dropped to AED 8,111, compared to AED 9,077 in 2022. This price drop has made Bur Dubai an even more affordable option for monthly short-term rental apartment seekers.
- The rent for monthly studio rentals in Bur Dubai has dropped to AED 4,504.
- In 2023, the asking rent for 1-bed monthly short-term rentals has averaged AED 8,374, showing a minute decrease of 1.16% from 2022.
- In contrast, the average asking rent of 2-bed short-term rentals in Bur Dubai has jumped to AED 14,572, reporting a significant increase of 7.78%.
Following Bur Dubai, Discovery Gardens and Deira offer affordable monthly short-term rental apartments. As per the user trends on dubizzle, monthly short-term rental apartments in Discovery Gardens have an average rent of AED 6,485, recording a minute drop from 2022.
On the contrary, the asking rents in Deira have shown a whopping increase of 19.25%, taking the average rent of monthly short-term rental apartments in Deira to AED 7,887.
TOP NEIGHBOURHOODS FOR LUXURY MONTHLY RENTALS
The luxury monthly rental apartments have seen an overall drop of 6.85% in 2023. This decline is attributed to the rising number of hotels and holiday homes in high-end neighbourhoods, such as Downtown Dubai and Dubai Marina. While the prices have dropped, the popularity of luxury short-term apartment rentals in Dubai has remained intact.
Let’s explore the trends in popular neighbourhoods for luxury monthly rental apartments in Dubai.
Dubai Marina
Dubai Marina has remained a top neighbourhood among tenants interested in luxury apartment rentals in the Emirate. The influx of hotels and hotel apartments in this waterfront neighbourhood resulted in a drop. Besides, the asking rent for monthly rental apartments in Dubai Marina has averaged AED 14,553 after a decline of 9.29%.
- According to the Dubai short-term rental property market trends, monthly studio flats for rent in Dubai Marina have seen a drop in average asking rent, amounting to AED 8,261.
- After a 7.49% decrease, the asking monthly rent for 1-bed flats has averaged AED 12,155.
- Moreover, the 2-bed monthly rentals in Dubai Marina have shown a drop, with the average asking rent standing at AED 18,952 in 2023.
Business Bay
New projects surrounded by world-class amenities and facilities have been the driving force in the rising popularity of Business Bay. With new projects and short-term rentals on offer, the rent for monthly rental apartments has seen a nominal drop, averaging AED 12,905.
- The asking monthly rent of studio flats has averaged AED 9,191 after a drop of 4%.
- 1-bed monthly rentals in Business Bay have also recorded a drop in asking rent, averaging AED 11,579 in 2023.
- The asking rent for 2-bed monthly rentals in Business Bay has averaged AED 17,249, after a minute drop of 3.96%.
Downtown Dubai
Home to skyscrapers such as Burj Khalifa, Downtown Dubai is another popular area with luxury short-term rental apartments in Dubai. As per the user trends, a drop of 9.64% has been observed in monthly rents amid rising short-term rental apartments. The average rent of monthly short-term rentals has dropped to AED 20,792.
- During 2023, the rent for monthly studio rentals in Downtown Dubai has averaged AED 10,206, showing a major decrease of 8.24%.
- Compared to last year, the average rent for 1-bed monthly short-term rentals has also decreased to AED 14,456.
- On the contrary, 2-bed short-term rentals have seen a significant drop of 12.97% to AED 22,144.
In the list of popular areas for luxury monthly short-term rentals in Dubai, DIFC and JBR stand at the fourth and fifth. Both have witnessed a drop in average asking monthly rents. DIFC has monthly short-term rentals listed at an average asking price of AED 12,854, after a 4.21% drop. On the other hand, monthly rental apartments in JBR have seen a decline of 4.30% in asking rents, averaging AED 21,417.
MOST POPULAR AREAS FOR AFFORDABLE AND LUXURY DAILY RENTAL APARTMENTS IN DUBAI
Dubai saw 14.36 million tourists in 2022, whereas the number has already risen to 15.3 million until November, with December to spare in 2023. Amid the rising demand, the rents of short-term rentals usually jump up. However, that was not the case in 2023.
More landlords have registered their properties as short-term rentals and holiday homes in Dubai. Homeowners can learn more from this guide to holiday homes in Dubai.
The increase in short-term rental units resulted in a price drop and attracted more tourists. Let’s go through the 2023 Dubai short-term rental market trends and learn about popular neighbourhoods for daily rentals.
TOP NEIGHBOURHOODS FOR AFFORDABLE DAILY RENTALS
The neighbourhoods with affordable daily rentals have witnessed an overall 2.72% drop in asking rents. However, only Al Barsha saw a nominal increase in average daily rents among these areas.
Bur Dubai
Bur Dubai is a historic district known for its vibrant cultural heritage, attracting tourists interested in the traditions and history of the country. Plus, the neighbourhood is well-known for its affordable rental options. In 2023, daily rental apartments in Bur Dubai saw a decline of 5.54% in asking rents, averaging AED 290.
- In 2023, the average daily rent of studio apartments has declined by 12.92% to AED 236.
- Compared to last year, the average rent for 1-bed daily short-term rentals in Bur Dubai has also decreased by 1.45%.
- Meanwhile, the asking rents for two-bedroom daily rental apartments in this old neighbourhood have increased by 1% to AED 606.
Al Barsha
A mixed-use community offering luxury hotels, Al Barsha is the second most preferred choice of tenants looking for daily affordable rentals in Dubai. Besides, it’s the only affordable area which has seen a rise in average daily rents. After a 7.43% increase, the daily apartment rentals have an average rent of AED 448.
- After a decrease, the studio flats for daily short-term rent in Al Barsha have an average rental value of AED 247.
- Meanwhile, the daily rent for a 1-bedroom flat has averaged AED 361.
- Besides, the daily rent for 2-bedroom apartments has averaged AED 536, depicting a 1.71% increase from the previous year.
Jumeirah Village Circle (JVC)
As a community offering several amenities and facilities nearby, tenants can find non-luxury apartments for daily rent in Jumeirah Village Circle. With the asking rent dropping to AED 386 per day, the area has garnered the attention of tourists looking for affordable daily rentals. Moreover, JVC is the most popular area to rent apartments near Global Village, a famous tourist attraction, or buy a flat.
- During 2023, the rent for daily studio rentals in JVC has averaged AED 356.
- Compared to last year, the average rent for 1-bed daily short-term rentals has also decreased to AED 374, depicting an 11.58% decrease.
- On the contrary, 2-bed short-term rentals have seen an increase of 6.66% to AED 625 per day.
Fourth on our list is Jumeirah Lake Towers (JLT), a waterfront community with top buildings and hotels. The average asking rent for daily rental apartments in JLT has also recorded a 6.61% drop to AED 452.
TOP NEIGHBOURHOODS FOR LUXURY DAILY RENTALS
The luxury daily rentals market has fared well as per the 2023 Dubai short-term rental market trends observed on dubizzle. Daily rents have seen a very slight drop. That said, Downtown Dubai has witnessed a surge in daily rents due to the ultimate luxury hotels and apartments.
Dubai Marina
Home to several hotel apartments, Dubai Marina is a popular tourist destination in the Emirate. The neighbourhood is also famous for activities, such as boat or yacht renting on offer. With the launch of Vida Dubai Marina and Yacht Club, the community saw an influx of daily rentals.
For that reason, the asking rent for daily rental flats in Dubai Marina has dropped slightly to AED 725, compared to AED 729 in 2022.
- The rent for daily studio rentals in Dubai Marina has dropped to AED 407.
- In 2023, the asking rent for 1-bed short-term rentals has averaged AED 588 per day, showing a decrease of 3.76% from 2022.
- Moreover, the average asking rent of 2-bed daily rentals in Dubai Marina has jumped to AED 907, reporting a slight decline of 1.52%.
Downtown Dubai
This neighbourhood has seen a surge in asking rents. As a tourist destination and home to Burj Khalifa and other skyscrapers, the average rent for daily rental apartments in Downtown Dubai has increased 17.98% to AED 1,896. Plus, the area has several popular buildings to rent flats near Burj Khalifa.
- With a surge of 32.66%, the studio flats for daily short-term rent in Downtown Dubai have an average rental value of AED 849.
- The short-term rental 1-bedroom flat has also witnessed a 0.51% increase, taking the rental price to AED 978 per day.
- The daily rent for 2-bedroom apartments has averaged AED 1,906, depicting a 12.38% uptick from the previous year.
Business Bay
In 2023, the daily rent for apartments has stabilised in Business Bay. As a home to commercial and residential projects, daily rental flats in Business Bay have remained a popular choice with an average rent of AED 567.
- The asking daily rent of studio flats has averaged AED 448 after a 3.70% increase.
- 1-bed daily rentals in Business Bay have also recorded an increase in asking rent, averaging AED 490 in 2023.
- On the contrary, the asking rent for 2-bed daily rental flats in Business Bay has averaged AED 725, after a drop of 7.29%.
Following Business Bay, JBR and Palm Jumeirah are popular among luxury daily rental seekers. In 2023, the asking rent for a short-term rental apartment in JBR has averaged AED 852 per day, after a significant decrease of 11.16% from 2022. Moreover, new developments in Palm Jumeirah have also resulted in a drop of 3.99% to AED 1,083 per day asking rent for short-term rental flats.
MOST POPULAR AREAS FOR MONTHLY VILLA RENTALS IN DUBAI
Users looking for short-term rental villas in Dubai have searched DAMAC Hills 2 and Palm Jumeirah for affordable and luxury houses for monthly rent, respectively. Both neighbourhoods have shown a downward trend in average monthly rents.
The average rent for affordable monthly rental villas in DAMAC Hills 2 has averaged AED 14,044 in 2023 after a significant drop of 9.05%. Moreover, rent for luxury short-term rental villas in Palm Jumeirah has averaged AED 146,671 per month in 2023, with a 1.25% drop.
This Dubai Short-term Rental Market Report 2023 by dubizzle represents the trends and includes a detailed analysis for landlords and short-term rental seekers. All-in-all, Dubai continued to see more overnight tourists and demand for short-term rentals. However, new hotel apartments and holiday homes met the demand, with average rents dropping in popular areas.
Stay tuned to the dubizzle Property blog for an in-depth analysis of the real estate market trends in the UAE.
Disclaimer: The trends mentioned in the Dubai short-term rental market report 2023 depend upon the short-term rental apartments and villas listed on dubizzle. It doesn’t represent the actual real estate transactions in the Emirate.
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