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Airbnb Hosting in UAE: Is Airbnb legal in Dubai? Discover the profitability & legality of UAE cities!

Last updated on August 16th, 2023

Airbnb legal Dubai

The UAE is not only famous for its sandy deserts or authentic camel experience, but it’s also one of the world’s top destinations for Airbnb.

In fact, Airbnb recently launched a one-stop shop for remote workers in Dubai. It’s perfect for those who are looking to find long-term listings while enjoying the city – live, work, and play.

But the real question boils down to this. Is Airbnb legal in Dubai or other cities in the UAE? 

In this article, we’ll discuss the local laws and regulations of 5 cities in the UAE. Bonus: We also added each Dubai city’s potential Airbnb annual revenue and occupancy rates! Continue reading to learn more.

Is Airbnb Legal Dubai?

Airbnb is definitely legal in Dubai. Similar to other cities that allow Airbnb, hosts will need to register their properties and comply with local regulations. So if you’re wondering, “is Airbnb legal in Abu Dhabi?” – it certainly is! According to the Dubai Department of Economy and Tourism (DTCM), all holiday rentals should be rented as a whole unit. This means that a host can’t share the property with another guest.

How to become an Airbnb host in Dubai?

Now that you know that Airbnb in Dubai is legal, let’s get started to be an Airbnb host! Here are the three requirements that you will need to be an Airbnb host in Dubai:

  1. Register as a homeowner account on the DTCM Holiday Homes website
  2. Submit the necessary documents and pay the fees
  3. Apply for a permit and receive your certificate upon approval

There are also other options if you don’t own the property. Can you still be an Airbnb host? Certainly! As long as the property owner allows you to host short-term guests and follows the local laws. This includes the following:

  • The property owner should still register the property with the Dubai Department of Economy and Tourism (DTCM).
  • Upon the property owner’s approval, there are documents that tenants should have. This includes the lease agreement, a “No Objection Certificate” from the landlord, a title deed, a recent DEWA bill, and a valid government ID.

Why Invest in an Airbnb in Dubai?

Did you know that Dubai is the most profitable city in the world for Airbnb landlords? That’s right! This was based on a recent survey by the CIA Landlord. In fact, the surprising part of their discovery was that property owners will only take 4 short months to earn their money back on their investment.

Check out the other top reasons why you should invest in an Airbnb in Dubai:

1. Excellent Tourism

Let’s not forget that Dubai is well-known for its attractions and luxury living! This city’s excellent tourism industry will make you worry-free about profitability. From business professionals to all kinds of travelers, Dubai will continuously welcome more guests. Due to this, the demand for rental properties in this city is also increasing.

2. Low-interest Rates

According to Trading Economics, the average interest rate in Dubai is only 1.35%. This is why most locals and foreign investors take advantage of property investments in this city. With its transparent property market, Dubai attracts more property investors in the UAE.

3. Work-Life Balance

The best thing about investing in Dubai is that one can certainly enjoy a work-life balance opportunity! Whether you’re a newbie or a pro in the Airbnb business, it’s good to know that this city offers an exciting lifestyle. There are several shopping districts, chic cafes, and luxury restaurants in Dubai.

Airbnb legal Dubai

Top 5 Most Profitable Airbnb Locations in Dubai

Here are the top 5 most profitable Airbnb locations in Dubai! Airbnb Dubai apartments can also be rented (yearly) in case you find the cost to be expensive. Using Airbtics, we were able to feature the annual revenue and occupancy rates of Airbnb apartments in Dubai (1-bedroom properties):

1. Palm Jumeirah
  • Average Property Price (1-bedroom property): $435,500 (AED 1.6 million)
  • Average Annual Revenue in Palm Jumeirah: $27,192 (AED 99,878)
  • Gross Rental Yield: 22%
  • Airbnb Occupancy Rate in Palm Jumeirah: 26%
2. Dubai Marina
  • Average Property Price (1-bedroom property): $424,646 (AED 1,559,770)
  • Average Annual Revenue in Dubai Marina: $34,494 (AED 126,699)
  • Gross Rental Yield: 8.12%
  • Airbnb Occupancy Rate in Dubai Marina: 57%
3. Business Bay

Average Property Price (1-bedroom property): $426,759 (AED 1,567,530)

Average Annual Revenue in Palm Jumeirah: $30,521 (AED 112,106)

Gross Rental Yield: 7.15%

Airbnb Occupancy Rate in Palm Jumeirah: 51%

4. Jumeirah Lake Towers
  • Average Property Price (1-bedroom property): $313,087 (AED 1,150,000)
  • Average Annual Revenue in Palm Jumeirah: $28,161 (AED 103,438)
  • Gross Rental Yield: 8.99%
  • Airbnb Occupancy Rate in Palm Jumeirah: 64%
5. Downtown Dubai

Average Property Price (1-bedroom property): $549,078 (AED 2,016,820)

Average Annual Revenue in Palm Jumeirah: $34,766 (AED 127,698)

Gross Rental Yield: 6.33%

Airbnb Occupancy Rate in Palm Jumeirah: 44%

Wrapping Up

Exploring the neighborhoods in your target city should be a primary step before investing. While Dubai is certainly a profitable city to do Airbnb, it’s always recommended to do thorough research. It’s also important to always consider other markets so that you won’t miss out on better opportunities. For instance, exploring the highest demand areas for Airbnb in the US can be a great way to start!

Before starting a property investment in any city, look at the Airbnb rules & review the complexity of requirements. The necessary information indicated in this article should be your guide to making the best investment decisions.

Now that you have an overview of the most ideal Airbnb investment in Dubai, don’t settle for less!

Using an Airbnb analytics tool like Airbtics, you can discover profitable properties and predict your profitability with an Airbnb profit calculator. Not only that – but you’ll also learn from the competitors within your area and price better than the rest.

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