As of 2025, Dubai is estimated to have over 800 hotels with a total of 150,000 rooms. Back in
1993, the city had only 167 hotels and around 10,000 rooms. However, due to the country’s
rapid development and the increasing number of tourists, the city has made significant progress
in the hospitality sector. Especially since the early 2000s, the number of tourists visiting the city
has reached millions, with hotels operating at an average occupancy rate of 70%, serving these
visitors. The growing number of tourists has also led to an improvement in hotel service quality.
However, with the rise of daily rental platforms like Airbnb, both the tourism and real estate
sectors in the city have been significantly affected. Many visitors who prefer more private living
spaces have turned to rental apartments. This trend has driven property values upward,
attracting real estate investors aiming to benefit from high returns. As a result, Dubai recorded
a property transaction volume of $207 billion in 2024, and a new record volume of $220 billion
is expected in 2025.

In 2025, nearly 20 million tourists are expected to visit the city of Dubai. When including
travelers who arrive at the airport and use the city as a transit hub, the actual number may be
significantly higher (Graph 1). This immense tourism potential also contributes to the
development of rental property opportunities. Additionally, the city stands out with its unique
offerings and is home to some of the world’s most luxurious hotels. One of the most important
considerations for rental property investors is the annual return on investment. Depending on
the location of the purchased property, an annual rental yield of around 5–7% is generally
achievable. However, investors who enter the short-term rental market and list their properties
on platforms like Airbnb can generate returns above this range. In particular, proximity to the
airport or city center offers the potential for even higher income.

When looking at average prices, daily rentals in Dubai are around $170. Monthly income can
increase depending on the location of the investment property. It is known that more than 35,000
properties in Dubai are currently listed on Airbnb. Annual Airbnb revenues range between
$45,000 and $50,000. With an average occupancy rate of 70%, short-term rental properties
generate higher returns compared to traditional long-term rentals and have become a new
favorite in the city. By 2030, the number of tourists visiting Dubai is expected to reach nearly
30 million, many of whom may prefer short-term rental properties over hotels. As Parcel
Estates, we aim to assist you not only in your real estate investment journey but also in
maximizing your rental income potential. We invite you to explore the exciting investment
opportunities that Dubai has to offer.