As of mid-2025, Dubai’s short-term rental market is experiencing significant growth, driven by increasing demand for flexible and lifestyle-centric living. Fresh insights from Bayut and dubizzle highlight that daily and monthly rental options continue to gain traction, particularly in vibrant districts such as Downtown Dubai, Dubai Marina, Business Bay, and Jumeirah Village Circle (JVC).
This rise in short-term rental interest comes at a time when the city’s long-term rental sector begins to stabilize, thanks in part to an expanding housing inventory. More than 72,000 new residential units are projected to be handed over by the end of the year, easing the pressure on long-term rents and enhancing choice for tenants.
Despite a slight cooling in long-term rental growth, premium short-term properties remain in strong demand. In sought-after neighborhoods like Downtown, Marina, and Meydan, monthly apartment rents range from AED 7,180 to AED 16,310. Villas on Palm Jumeirah and Dubai Hills Estate are commanding up to AED 171,430 per month, underscoring a sustained appetite for luxury accommodations.
More budget-friendly options are available too. Mid-range apartments in areas like JVC, Business Bay, and Al Barsha are available for AED 4,630 to AED 7,090 per month. Meanwhile, villas in DAMAC Hills 2 start from AED 12,960 per month. For cost-conscious renters, International City and Deira present apartments at competitive monthly rates between AED 3,080 and AED 12,990.
Daily rental patterns reflect similar preferences. Premium apartment stays in JBR, Downtown, and Marina command nightly rates from AED 516 to AED 762. Luxury villas on Palm Jumeirah can reach as high as AED 6,960 per night, marking a 14.6% year-on-year increase.
Affordable daily rentals are seeing growth as well. JVC has recorded a 5.6% rise, averaging AED 415 per night. Locations such as Deira, Bur Dubai, and Dubai Silicon Oasis remain popular among budget travelers, offering rates between AED 206 and AED 269 per night.
Bayut’s Smart Rental Index suggests that growth in long-term rents is moderating. Affordable apartment rents rose about 7%, though some localities like Bur Dubai and Deira recorded slight declines. Mid-range properties saw modest gains of 1–6%, while luxury units experienced mixed performance, with some areas like Downtown Dubai seeing minor increases while others dropped 1–5%.
Villa rental prices have shown more volatility. Affordable and mid-tier units have increased up to 9% and 7% respectively. However, luxury villa trends were inconsistent: while five-bedroom homes in Dubai Hills Estate soared by 53% due to supply shortages, some four-bedroom units saw declines of up to 9%.
Shifts in tenant preferences are evident. Those seeking affordability are gravitating towards Arjan and Bur Dubai, mid-tier renters are favoring Business Bay and JVC, while premium renters continue to prioritize Downtown and Dubai Marina. On the villa side, areas like DAMAC Hills and Dubai Hills Estate dominate high-end choices.
Dubai’s short-term rental market remains buoyed by demand from digital nomads, expatriates, and tourists attracted to its vibrant lifestyle. With continued support from digital platforms, property technology innovations, and government initiatives such as the First-Time Home Buyer program, more residents are expected to transition from renting to ownership, contributing to a balanced and sustainable property ecosystem.