Dubai short-term rentals boom in 2026: Revenue up 172%, occupancy at 69% and nearly 19,000 units on the market

Dubai: Recent data from AirDNA, a US company specialising in short-term rental market analysis, showed strong performance in Dubai’s tourist rental market, with average annual revenue per unit reaching $37,200 (about Dh136,600) during the past 12 months up to August 2026. According to the company’s data, the number of units available for short-term rent in Dubai reached 18,902 units until August 2026, while the average occupancy rate of these units reached 69%, and the average price per night booked reached $178 (about Dh654). The average revenue per bookable unit was $123 (Dh451) per night, an indicator that combines price level and occupancy rate. Based on the data, the total average revenue recorded, based on the average unit price multiplied by the number of available units, is estimated at approximately Dh2.582 billion, representing an annual increase of approximately 172%. The data includes short-term rental units offered through global booking platforms, including Airbnb, Booking.com, and others, with the unit being counted only once if it is offered on more than one platform. The increase in occupancy is important when reading revenue growth, as the figures not only reflect higher prices, but also come with an increase in the proportion of nights booked. From August 2025 to August 2026, revenue increased by 171.9%, while occupancy increased by 24.2%, and revenue per available unit rose by 14.7%. These figures indicate strong revenue growth in Dubai's short-term rental market, coupled with high occupancy rates, reflecting continued demand for this type of accommodation. The occupancy rate of 69% suggests that approximately seven out of every ten available nights were booked, according to company data. Dubai also scored 85 out of 100 on the AirDNA short-term rental market index, which combines a range of factors including rental demand, seasonality, revenue growth, and regulation. Scores for these components are calculated based on market data monitored by the company. AirDNA explains that the average annual revenue of $37,200 (Dh136,600) is what a typical unit has generated over the last 12 months, before deducting expenses incurred by the unit owner, and includes revenue from booked nights, cleaning fees, and other fees paid by the guest. It is noted that the short-term rental market is a type of accommodation that allows the rental of residential units to visitors for short periods, often through digital platforms, and gives visitors diverse accommodation options, as well as providing unit owners with a source of income from renting their properties for short periods, similar to the holiday home system. Dubai hotel prices reveal market strength Data from STR Global, a hotel research and consulting firm, shows that Dubai’s hospitality market continues to demonstrate resilience, with prices and local and regional demand emerging as the key drivers of the sector’s performance, according to the firm’s latest forecast for Middle East hotel markets. The company stated in a report that local demand and travel between countries in the region were a positive factor for Dubai during the summer months, and contributed to supporting demand for hotels. The company also raised its forecast for occupancy recovery next year. Conversely, the company expects prices to remain relatively close to 2025 levels, with the average expected price in 2027 being separated from the 2025 level by only Dh19.8. According to the report's indicators, these figures reflect the ability of Dubai's hospitality market to maintain its price strength amid challenging regional travel conditions, benefiting from local and regional demand, and the performance of luxury hotels. The report stated that government support and marketing efforts, along with local and regional demand, helped hotels maintain their prices better than previously expected. This comes at a time when the corporate events calendar is still open, while regional business travel is expected to continue supporting demand through the end of the year, according to the STR Global report.