Dubai’s short-term rental market set for 18 per cent surge

Dubai’s short-term rental market is poised for an 18 per cent surge in 2025, fuelled by booming tourism, investor confidence, and regulatory tailwinds, according to industry forecasts.

  Amid this growth, local proptech pioneer Monty Holiday Home has unveiled a subscription-based property management model that promises to revolutionise how homeowners maximise profits in the lucrative sector. 

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 Dubai’s short-term rental market continues to outpace long-term leasing, with property conversions to vacation units jumping 30 per cent year-over-year. The trend reflects soaring demand from tourists and business travellers, with Dubai welcoming over 20 million visitors in 2024 — a figure expected to climb further in 2025. Government initiatives, such as streamlined licensing for holiday homes and visa reforms, have further cemented the city’s reputation as a short-term rental hotspot.  

 Financial incentives are equally compelling. A two-bedroom apartment in Dubai Marina now generates up to Dh25,000 monthly as a short-term rental during peak seasons, compared to Dh12,000–15,000 for long-term leases. “Owners are recognising the potential for higher returns, especially in prime areas like Palm Jumeirah and Downtown Dubai,” said a market analyst familiar with the data.  

 Despite the sector’s profitability, traditional property management models have drawn criticism for eroding homeowner profits. Most firms charge commissions between 15 per cent and 25 per cent of rental income — a significant cut given Dubai’s premium rental rates. For a property earning Dh25,000 monthly, this translates to up to Dh6,250 in fees.  

 Property market analysts said homeowners want transparency and control over their earnings. The old commission system is unsustainable in a market this competitive.  

 Set to launch on March 1, 2025, Monty Holiday Home’s subscription-based model eliminates variable commissions entirely. Instead, homeowners pay a fixed monthly fee starting at Dh1,500 for access to the company’s tech-driven services, including AI-powered pricing optimization, 24/7 guest support, and automated maintenance coordination.  

 The model allows owners to retain 100 per cent of their rental income while leveraging Monty’s expertise in dynamic pricing, marketing, and regulatory compliance. For example, a Dubai Marina homeowner paying Dh1,500 monthly would save approximately Dh4,750 compared to a 25 per cent commission structure—boosting annual profits by over Dh57,000.  

  Abir Chammah, co-founder and managing director of Monty Holiday Home, said new AI tools analyse market trends in real time, adjust pricing strategies, and ensure properties stay booked at optimal rates.

 “With our new subscription-based model, we are giving homeowners the power to keep their profits while still enjoying world-class management and AI-driven automation,” said Chammah.“This is the future of short-term rentals.”

A 2024 survey by Dubai-based Property Monitor found that 68 per cent of short-term rental owners prioritised “fee transparency” and “predictable costs” when selecting property managers — factors Monty’s model directly addresses.  

 Analysts note that the approach could pressure traditional firms to rethink pricing. They argue that as the market grows, innovation in management services will separate leaders from laggards. “For now, Dubai’s homeowners have a clearer path to capitalising on the city’s rental boom—without sacrificing profits to middlemen.”

 With Dubai’s tourism authority targeting 25 million annual visitors by 2026, demand for short-term rentals shows no signs of slowing. Monty Holiday Home plans to expand its subscription services to Abu Dhabi and Saudi Arabia by late 2025, betting on regional growth in leisure and business travel.

Issac John

Staff Writer

issacjohn@khaleejtimes.com

Issac John is Managing Editor at Khaleej Times and has over 45 years of experience in top-tier newspapers across UAE. A seasoned business writer and economic analyst, he brings unmatched insight into the geopolitics and geoeconomics shaping the Gulf and India.