Dubai vs Nice vs Tunis: which short-term rental investment market for your next property?

Choosing between Dubai, Nice and Tunis for a short-term rental investment means choosing between three rulebooks: no night cap in Dubai, 120 days a year for a primary residence in Nice since 1 September 2026, and a Tunisian regime that the official sources we consulted do not spell out for a whole apartment. On the same source and period, average annual revenue per listing ranges from $6,208 in Tunis to $20,441 in Dubai.

Dubai vs Nice vs Tunis: the short-term rental investment comparison in one table

The table sets out, for each market, the rule in force on 3 October 2026 and the latest public figure available. Rental metrics all come from AirROI, over the same period (August 2025 to July 2026), so they stay comparable. ADR is the average price paid per booked night, the occupancy rate is the share of available nights booked, and RevPAR is revenue per available night.

Amounts stay in each source's currency. AirROI figures are market averages, updated on 12 September 2026. They do not describe the income of any given property and deduct no costs.

Short-term rental rules: what each market allows for an investment property

The question that matters to an investor concerns the home they do not live in. The three markets answer it differently.

• Dubai: Decree No. 41 of 2013 sets no maximum number of nights. Each unit gets its own holiday home permit from the DET (Department of Economy and Tourism), with no published quota. The permit is renewed every 3 to 12 months.
• Nice: the 120-day cap only covers a primary residence. A second home needs change-of-use authorisation from the first night. Each owner can obtain a single 5-year temporary authorisation without compensation. From the second property, compensation (converting a space with another use into housing) is mandatory, and from the first for a commercial company. The Métropole is preparing new rules for 1 January 2027.
• Tunis: the official text we consulted is the Tourism Minister's order of 29 July 2013 on family hosting. It covers a host who lives with guests, in up to 5 rooms and for up to 15 people. We found no accessible official text setting the regime for a whole apartment let by the night. Bill no. 031/2025, tabled on 21 April 2025 in the Assembly of the Representatives of the People (ARP), would place furnished rentals under specifications and prior authorisation. On 3 October 2026, it is still under committee review.

For a multi-property owner, Nice's compensation rule from the second property weighs more than the day cap. The three frameworks are detailed in Dubai's absence of a night cap, Nice's 120-day rule and mobility leases and authorisation in Tunisia.

Purchase price per square metre in Dubai, Nice and Tunis: what the sources publish

The purchase price sets the denominator of the yield. The three markets do not publish the same data.

• Nice: the public DVF database (Demandes de valeurs foncières, France's register of property sales) lists recorded sales. In 2025, 7,367 apartments sold in Nice show an average price of €5,151 per m², against €5,038 in 2024, a 2.3% rise. Flatlab calculation from the monthly DVF statistics published on data.gouv.fr.
• Dubai: no accessible official source publishes an average price per m². Property Monitor, a private data company, measures a market average of AED 1,673 per sq ft in December 2025. Bayut publishes AED 2,111 per sq ft in Dubai Marina for H1 2026, calculated on advertised listing prices. ValuStrat measures a 5.3% annual rise in apartment values in August 2026.
• Tunis: the National Institute of Statistics (INS) publishes a price index based on recorded sales. It does not publish a price per m². In Q4 2025, the apartment index rose 5.7% year on year, and the index for all built property in Greater Tunis rose 2.9%. We found no price per m² published by an official source.

One square foot equals 0.0929 m². Conditions for a non-resident buying in Tunisia are not covered here: check them with a Tunisian notary or lawyer before making any offer.

Occupancy and seasonality: three offset calendars

The figure that matters for a portfolio across the three markets is the calendar. According to AirROI, Dubai peaks in winter, when Nice and Tunis are in low season.

• Dubai: December is the strongest month, with 51.1% occupancy and $5,436 of average revenue per listing. July is the weakest, at 25.1% and $1,438.
• Nice: June, August and September lift occupancy to 61.0% and average monthly revenue to $4,028. In January, February and November, it falls to $1,555.
• Tunis: August is the strongest month, with 53.9% occupancy and $1,534. February is the weakest, at 29.5% and $554.

For an owner of two properties, one in Dubai and the other in Nice or Tunis, the slow months of one fall during the busy months of the other. Consolidated revenue therefore varies less from month to month than that of each property alone. The gap between sources remains wide: for Dubai, AirDNA reports 69% occupancy over the 12 months to end August 2026, against 39.9% at AirROI. Always compare figures from a single source.

Short-term rental tax in Dubai, France and Tunisia

The broad lines of taxation in the property's country, for an individual. Your country of tax residence may also tax this income.

• United Arab Emirates: the official u.ae portal states that the UAE does not levy income tax on individuals. 5% VAT applies to short-term accommodation. A non-resident registers from the first night let, with no threshold. Corporate tax of 9%, above AED 375,000 of taxable profit, can apply to an individual whose letting is treated as a business activity.
• France: receipts from a furnished tourist let are taxed as BIC (industrial and commercial profits). Under micro-BIC, the flat allowance is 30% up to €15,000 of receipts for an unclassified property, and 50% up to €77,700 (€83,600 for 2026 income) for a classified one. A long-term furnished let, including a bail mobilité (mobility lease), gets 50% up to €77,700 (€83,600 for 2026 income).
• Tunisia: we could not verify in an accessible official source how short-term rental income earned by a non-resident individual is taxed. This needs advice from a Tunisian tax adviser.

Which market for which investor profile

None of the three markets suits every profile. Five criteria help decide according to your situation:

1. How many homes you already let in France: in Nice, a second tourist let triggers compensation. In Dubai, each unit follows the same permit procedure.
2. The entry ticket: compare the real purchase price of the target property with the expected net income. An average per m² is a benchmark: the transaction price is checked property by property.
3. Revenue per available night: $112 in Dubai, $89 in Nice, $27 in Tunis according to AirROI. Fixed costs (building charges, insurance, utilities) should be compared with this figure.
4. Your portfolio's calendar: a Dubai property fills in winter, a property in Nice or Tunis fills in summer.
5. Your tolerance for missing data: in Tunis, the price per m², the regime for a whole apartment and the tax treatment of a non-resident must be checked with local professionals.

The yield of each option is net income, after commission, platform fees, taxes and running costs, divided by the real purchase price. A market average does not replace that line.

What Flatlab does

We manage 17 properties in Dubai, Nice, Paris and Tunisia. Our fee is 20% all-inclusive, cleaning included, with a 3-month notice period, a monthly line-by-line statement and an owner console open 24/7. Every estimate is sourced from our local portfolio: a DET audit in Dubai, a Loi Le Meur audit in Nice, a local paperwork guide in Tunisia. In Tunisia, the rate can be discounted based on the number of properties entrusted. Our presence in Tunis, La Marsa, Sidi Bou Saïd and Hammamet is described on our Tunisia management page, and the rules by region on our compliance page.

FAQ

Is it better to invest in short-term rentals in Dubai or in France?

It depends on your situation. Dubai sets no night cap and no compensation, but requires a permit per unit and VAT from the first night for a non-resident. In Nice, a second home needs change-of-use authorisation, then compensation from the second property.

What is Airbnb occupancy in Nice compared with Dubai?

According to AirROI, from August 2025 to July 2026: 45.7% in Nice and 39.9% in Dubai. Other sources publish higher rates for Dubai, which is why you should compare with a single source.

Is Airbnb regulated in Tunisia?

Family hosting, where the host lives with guests, is governed by an order of 29 July 2013. For a whole apartment, we found no accessible official text. A bill on furnished rentals is under committee review in the ARP on 3 October 2026: have the regime checked by a local professional.

What is the price per m² in Nice in 2025?

€5,151 on average for apartments sold in 2025, across 7,367 sales, based on our calculation from DVF statistics. The average varies widely from one district to another.

This article is for information only. It does not replace professional legal or tax advice in France, the UAE or Tunisia. Rules change: check the rule in force with local authorities before buying or letting.