The UAE’s short term rental market is now amongst the world’s fastest growing in terms of active listings and revenue growth, with Dubai and Abu Dhabi outperforming cities like New York, Sydney, Tokyo, and Singapore, according to property management firm Frank Porter.
Dubai and Abu Dhabi are outperforming cities like New York, Sydney, Tokyo, and Singapore in its short-term rental market. Photos by File Photo
This progress is attributed to pro-investment policies, smooth-running licensing frameworks, and an uptick in tourists visiting the country, its founder and CEO, Anna Skigin, said. She added that the firm sees this momentum daily, with both international investors and returning guests choosing apartments over traditional hotel stays.
Frank Porter, which deals with short-term rentals, manages over 650 properties across the UAE, mainly Dubai. It found that there is a strong demand for these short-term rentals in “established” areas like Dubai Marina, Downtown Dubai, Business Bay, and Palm Jumeirah. At the same time, other lifestyle-led districts such as Dubai Design District showed some potential for the future.
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Higher rates, higher demand
The firm noted that UAE cities are outperforming global cities due to rapid growth in licensed short-term rental units, high occupancy rates, rising visitor arrivals, and also sustained real estate investment flows.
Frank Porter looked at two key performance indicators that highlighted the UAE’s strong short-term rental market: Average Daily Rate (ADR), which measures the average price a guest pays per night, and Revenue Per Available Room (RevPAR), which measures overall revenue performance.
Increasing ADR signals that properties are commanding higher rates because of sustained demand and more confidence in the quality of accommodation, while a higher RevPAR indicates that properties are achieving stronger pricing while maintaining high booking levels.
“The upward movement in both ADR and RevPAR demonstrates a market that is expanding in both value and performance,” Skigin said. “Operators are successfully increasing returns while sustaining strong demand.”
The CEO added that the synergy between the private sector and the UAE government aided in creating an environment where “the sector can expand sustainably,” she said.
Demand for comfy interiors
The firm’s in-house design team reported a growing demand for aesthetically pleasing hotel-inspired interiors. Guests also look for high-speed Wi-Fi for work-from-home functionality, outdoor living spaces, and Instagram-worthy design details.
Short-term rentals should feel cozy and, ultimately, feel like a home, according to Frank Porter, which said that these accommodations can’t afford to be basic and that they must look upgraded to compete in a competitive market.
“Professional management is key,” Skigin added. “Performance increasingly depends on dynamic pricing, hotel-grade housekeeping, guest communication speed, high-quality listing content and strict regulatory compliance - all of which we manage day-to-day for our clients.”
While short-term rentals continue to gain popularity, she emphasised they complement rather than replace hotels. “Hotels continue to dominate corporate and event-driven stays, while short-term rentals capture families, couples, long-stay professionals, remote workers and group travellers,” she explained.
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Hind Aldah
Hind Aldah is a business reporter based in Sharjah. In her spare time, you will find her playing cla...