Dubai Short-Term Rental Market Records 172% Revenue Growth and 69% Occupancy by August 2026
Dubai's short-term rental sector has shown robust growth, with annual revenue per unit reaching AED 136,600 and an average occupancy rate of 69% for nearly 19,000 units by August 2026, according to AirDNA data.
Dubai's short-term rental market has demonstrated exceptional performance, with recent data from AirDNA indicating significant revenue growth and high occupancy rates through August 2026. The sector, which includes listings on platforms like Airbnb and Booking.com, saw its total annual revenue increase by approximately 172%.
Key Performance Metrics
The analysis reveals that the average annual revenue per short-term rental unit in Dubai reached AED 136,600 ($37,200) over the 12 months leading up to August 2026. The number of available units expanded to 18,902, achieving an average occupancy rate of 69%. The average price per night booked was $178 (AED 654), with the average revenue per bookable unit standing at $123 (AED 451) per night.
Overall, the total estimated revenue for the market is approximately AED 2.582 billion. This growth is not solely driven by higher prices; occupancy rates also increased by 24.2% and revenue per available unit rose by 14.7% from August 2025 to August 2026, indicating a strong demand for short-term accommodations.
Market Strength and Outlook
Dubai scored 85 out of 100 on AirDNA's short-term rental market index, which evaluates factors such as demand, seasonality, revenue growth, and regulatory environment. This high score underscores the market's strength and attractiveness. Short-term rentals offer diverse accommodation options for visitors and provide unit owners with a source of income, similar to the holiday home system.
Complementing this, data from STR Global highlights the resilience of Dubai’s wider hospitality market. Despite expectations for prices to remain close to 2025 levels in 2027, local and regional demand, along with government support and marketing efforts, have helped hotels maintain their price strength. This continuous strong performance across both short-term rentals and traditional hotels reflects robust tourism and business travel demand in the region.
Questions, answered
- What was the average annual revenue per short-term rental unit in Dubai?
- According to AirDNA data for the 12 months leading up to August 2026, the average annual revenue per short-term rental unit in Dubai reached approximately **AED 136,600** ($37,200).
- How many short-term rental units were available in Dubai by August 2026?
- By August 2026, the number of available short-term rental units in Dubai had grown to **18,902**, as per AirDNA's analysis.
- What was the average occupancy rate for Dubai's short-term rentals?
- The average occupancy rate for short-term rental units in Dubai was **69%** during the period leading up to August 2026.
- What was the total estimated revenue for Dubai's short-term rental market?
- The total estimated revenue for Dubai's short-term rental market, based on average unit price and available units, is approximately **AED 2.582 billion**, representing a 172% annual increase.
- Which platforms are included in the short-term rental data?
- The data includes short-term rental units offered through major global booking platforms such as Airbnb, Booking.com, and others. Units are counted only once, even if listed on multiple platforms.
This brief was summarised and rewritten by Gaia Living from public reporting. Figures and details reflect the original sources.