Recent data from U.S.-based AirDNA, a company specializing in short-term rental market analysis, showed strong performance in Dubai’s tourist rental market over the past 12 months, with average annual revenue per unit rising to $37,200, equivalent to approximately AED 136,600, through August 2026.

The figures reflect continued strength in this type of accommodation, supported by steady demand for residential units available for short stays and the wide range of tourism options Dubai offers its visitors.

18,900 Short-Term Rental Units Available in Dubai

According to AirDNA data, the number of units available for short-term rental in Dubai reached approximately 18,902 as of August 2026.

The average occupancy rate for these units stood at around 69%, while the average booked nightly rate reached $178, equivalent to approximately AED 654.

Average revenue per available rental unit reached $123 per night, a metric that reflects both pricing levels and occupancy rates.

An occupancy rate of 69% means that roughly seven out of every 10 available nights were booked, highlighting continued demand for short-term tourist rentals in Dubai.

Average Revenue Approaches AED 2.582 Billion

Based on average annual revenue per unit and the total number of units available in the market, overall average revenue is estimated at approximately AED 2.582 billion over a 12-month period.

The data showed that revenue increased by 171.9% between August 2025 and August 2026, alongside a 24.2% rise in occupancy.

Revenue per available rental unit also increased by around 14.7% over the same period.

This increase is particularly significant because revenue growth was not driven by higher prices alone. It was also accompanied by an increase in the share of nights actually booked, indicating a clear improvement in demand levels.

These indicators reflect the strong performance of Dubai’s short-term rental units, particularly as occupancy continues to rise and the market benefits from a broad base of visitors looking for a variety of accommodation options.

Dubai Scores 85 on the AirDNA Index

Dubai received a score of 85 out of 100 on AirDNA’s index for evaluating short-term rental markets.

The index combines several factors used to assess market performance, including rental demand, seasonality, revenue growth, and the regulatory environment.

These components are calculated using market data tracked by the company, providing a broader picture of a destination’s attractiveness for short-term rentals.

Dubai’s high score reflects the strength of the market, continued demand for this type of accommodation, and the wide range of lodging options available to visitors.

What Is Included in Short-Term Rental Revenue?

AirDNA said the average annual revenue of $37,200 represents the amount earned by a typical unit over the past 12 months before deducting expenses and costs borne by the property owner.

Revenue includes income from booked nights, along with cleaning fees and other charges paid by guests during the booking process.

The data covers short-term rental units listed on major global booking platforms, including Airbnb, Booking.com, and others.

If the same property is listed on more than one platform, it is counted only once in the market data to avoid duplication.

Tourist Rentals Expand Accommodation Options in Dubai

The short-term rental market is one form of accommodation that allows residential units to be rented to visitors for limited periods, with bookings typically made through specialized digital platforms.

This type of accommodation gives travelers additional choices alongside hotels and hotel apartments, allowing them to select units based on their preferred size, location, and length of stay.

For property owners, short-term rentals also provide an opportunity to generate income by renting out their units for limited periods, similar to the holiday home model.

Growing demand for these units is in line with the nature of Dubai’s tourism market, which attracts a wide range of visitors traveling for leisure, business, exhibitions, events, and other purposes.

Dubai Hotel Market Maintains Its Strength

In a related development, data from STR Global, a company specializing in hotel research and consulting, showed that Dubai’s hospitality sector continues to demonstrate a high degree of resilience, supported by strong pricing and both domestic and regional demand.

In its latest outlook for hotel markets across the Middle East, the company said domestic demand and travel between countries in the region provided support for Dubai hotels during the summer months.

STR Global also raised its expectations for an occupancy recovery next year, reflecting continued confidence in the performance of Dubai’s hospitality market.

These developments further indicate that Dubai’s accommodation market continues to benefit from diversified demand across both hotels and short-term tourist rental units.

Hotel Rates Support the Competitiveness of Dubai’s Hospitality Market

STR Global expects hotel rates in Dubai to remain relatively close to 2025 levels in the coming years.

According to the data, the difference between the average rate expected in 2027 and the level recorded in 2025 is no more than approximately AED 19.8.

These figures reflect the ability of Dubai’s hospitality market to maintain its pricing strength, even amid certain challenges that may affect regional travel activity.

Domestic and regional demand, along with the performance of luxury hotels, has also supported the market, while government initiatives and tourism marketing efforts have helped hotel operators maintain rates at stronger levels than some earlier forecasts had suggested.

The corporate events and exhibitions calendar also remains active, while regional business travel is expected to continue supporting hotel demand through the end of the year.