UAE Holiday Homes 2025: revenue snapshot and what’s coming in 2026

The UAE’s short-term rental (holiday homes) sector had a strong 2025 — supported by record tourism inflows, high winter demand, and improving operational data for well-managed listings. But the market is maturing, competition is increasing, and 2026 looks more like a year of normalization than runaway growth. Below is a concise review of 2025 performance, the forces shaping revenue, and practical outlook & tips for hosts heading into 2026.

2025 at a glance — demand and performance

• Visitor growth: Dubai reported nearly 9.9 million international overnight visitors in H1 2025, continuing the recovery and growth trend that followed the pandemic rebound. This rising arrival base supported accommodation demand across hotels and non-hotel stays. dubaidet.gov.ae
• STR occupancy & seasonality: Market trackers show that top short-term rental listings in Dubai have reported robust occupancy — with some dashboards indicating an average occupancy near 70% over a trailing 12-month period for well-positioned properties (Sept 2024–Aug 2025). The market remains highly seasonal: peak winter months (November–March) deliver the bulk of revenue, while summer months can see occupancy drop sharply. Airbtics | Airbnb Analytics+1
• Hotels & wider hospitality context: Hotel performance across the region was positive in H1 2025, and broader hospitality metrics (RevPAR, ADR) were generally improving — an important signal because hotels and holiday homes compete for many of the same international guests, especially event and business travellers. STR

What drove revenue in 2025

1. High international arrivals: More tourists = more nights sold. Large events, expanded flight routes, and resumed business travel funneled guests into both hotels and holiday homes. dubaidet.gov.ae
2. Premium/experience demand: There’s stronger demand for larger family-style units, villas, and serviced apartments offering privacy — properties that can command premium nightly rates in peak months. Airbtics | Airbnb Analytics
3. Dynamic pricing & professional management: Listings using dynamic pricing and professional operators captured outsized revenue gains versus unmanaged listings. Occupancy and ADR optimization matters. Airbtics | Airbnb Analytics

Risks and headwinds to revenue

• Rising supply: Many investors entered short-term rental and serviced-apartment segments in 2024–2025, increasing available nights and pressuring average rates in some segments. That means owners who don’t optimize can see yields compress. Reuters
• Seasonality and summer troughs: Summer months remain a weak spot — if a property is not positioned to capture long-stay deals or winter bookings in advance, annual revenue can be volatile. PriceLabs
• Regulatory and market shifts: As the sector grows, expect continued refinement of licensing, registration and platform policies (especially in Dubai and Abu Dhabi). These can affect how and where holiday homes operate.

Outlook for 2026 — normalization, not collapse

• Slower but steadier growth: Multiple industry signals point to 2026 being a year of stabilization rather than explosive growth. With more supply coming online and some forecasts predicting moderation in price growth for residential markets, average growth in holiday-home revenues will likely moderate. In short: more supply + consistent (but not exponentially growing) demand → normalization. Reuters+1
• Opportunity in segmentation: Demand will favor differentiated, high-quality units (premium villas, curated family stays, and professionally managed city apartments). Owners who invest in guest experience, review management, and dynamic pricing should outperform the market average. Airbtics | Airbnb Analytics
• Events & diversification: Major events, conferences, and returning business travel will continue to create calendar spikes. Hosts who diversify channels (OTAs, direct booking, corporate partnerships) and target event windows can secure higher revenue share.

Practical recommendations for owners & managers

1. Use data-driven pricing year-round. Winter months can subsidize summer; dynamic rules and minimum-stay strategies are essential. Airbtics | Airbnb Analytics+1
2. Invest in differentiation. Better photos, clear family/remote-work amenities, and a small local-experience concierge raise ADR. Airbtics | Airbnb Analytics
3. Control costs & plan for volatility. Higher management fees, utilities, and platform commissions reduce net yield — build contingency buffers and evaluate whether switching some stock to mid/long-term leasing during low season makes sense. (Many owners have already been switching some units to longer lets for predictability.) Reddit+1
4. Monitor supply trends by area. New project deliveries in 2025–2026 can change local rental dynamics quickly—price and positioning must respond. Reuters
5. Prepare for regulation & registration. Keep permits and insurance up to date and monitor emirate-level guidance for holiday-home operations.

2025 was a strong year for UAE holiday homes due to continued tourism growth and resilient demand for private stays. Heading into 2026, expect a more competitive, normalized market: returns will increasingly depend on professional operations, smart pricing, and differentiated guest experiences rather than simple market tailwinds. Owners who treat their listings like operating businesses (data, marketing, cost control) will capture the best share of revenue as the market matures.

Sources & further reading

Key sources used for figures and market signals above: Dubai Department of Economy & Tourism H1/2025 visitor figures; Airbtics data dashboards on Dubai STR occupancy (Sept 2024–Aug 2025); PriceLabs / market seasonality observations; STR regional hotel performance; Reuters reporting and market commentary on supply and price normalization. Reuters+4dubaidet.gov.ae+4Airbtics | Airbnb Analytics+4