Dubai Short-Term Rentals Thrive as Market Matures in Mid-2025
Dubai’s short-term rental market is booming in 2025, with growing demand for flexible living arrangements. According to new data from Bayut and dubizzle, demand for monthly and daily rentals remains strong, especially in lifestyle-centric communities like Dubai Marina, Downtown Dubai, Business Bay, and Jumeirah Village Circle.
This surge comes even as the broader long-term rental market begins to stabilize, driven by increased housing supply. Over 72,000 new residential units are expected to be delivered in 2025, creating more options and slightly cooling rent hikes.
Despite this, premium short-term stays remain in high demand. Monthly apartment rents range between AED 7,180 and AED 16,310 in Dubai Marina, Downtown Dubai, and Meydan City. Villa rentals on Palm Jumeirah and Dubai Hills Estate reach up to AED 171,430 per month, reflecting continued appetite for luxury living.
Mid-tier apartments in JVC, Business Bay, and Al Barsha range from AED 4,630 to AED 7,090 monthly, while villas in DAMAC Hills 2 start from AED 12,960 per month. For cost-conscious tenants, International City and Deira offer more affordable options, with apartments renting from AED 3,080 to AED 12,990 monthly.
Daily rental trends mirror monthly demand. Downtown Dubai, JBR, and Dubai Marina top the charts for luxury apartment stays, with nightly rates between AED 516 and AED 762. Villas on Palm Jumeirah can command AED 6,960 per night—a 14.6% YoY increase.
Affordable daily rentals are also flourishing. JVC saw a 5.6% increase, now averaging AED 415 per day. Bur Dubai, Deira, and Dubai Silicon Oasis offer budget options ranging from AED 206 to AED 269 per night.
Bayut’s Smart Rental Index reveals that long-term rent growth is slowing. Affordable apartments saw modest 7% gains, while some units in Bur Dubai and Deira fell by 6.2%. Mid-range rents increased by 1–6%. Luxury apartments declined by 1–5%, although some in Downtown and Marina still saw slight growth.
Villa rents were more volatile. Affordable units grew up to 9%, mid-tier up to 7%, while luxury villas saw mixed trends. Five-bedroom homes in Dubai Hills Estate surged by 53% due to limited supply, while 4-bedroom units dropped by up to 9%.
Area preferences shifted with price movements. Affordable renters gravitated toward Bur Dubai and Arjan, mid-tier tenants focused on JVC and Business Bay, and luxury seekers flocked to Downtown and Dubai Marina. For villas, Damac Hills and Dubai Hills Estate led the high-end segment.
The short-term sector continues to thrive thanks to digital nomads, expats, and tourists drawn to Dubai’s dynamic lifestyle. As tech-driven brokerages and government initiatives like the First-Time Home Buyer programme gain traction, more renters are transitioning to ownership, fostering a more balanced and robust housing ecosystem.
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