Short-term vs long-term rental in Dubai: the 12-month numbers side by side

Over 12 months, a Dubai Marina 1-bedroom on an annual lease leaves about AED 79,000 to 81,000 after costs, against AED 22,000 to 115,000 as a managed short-term rental across our three scenarios. To beat the annual lease, short-term letting has to bring in about AED 172,000 to 176,000 gross a year.

What does an annual lease earn for a Dubai Marina 1-bedroom in 2026?

Comparing short-term vs long-term rental in Dubai starts with your property's real annual rent. Two portals publish averages for Dubai Marina 1-bedrooms, using two different methods.

• Property Finder, signed contracts: AED 101,015 a year on average for new leases, AED 94,073 for renewed leases (data accessed 3 October 2026).
• Bayut, H1 2026 report: AED 103,000 a year for a Marina 1-bedroom. This figure covers advertised asking prices, with extreme values trimmed out.

Both sources converge around AED 100,000 for a new lease. Renewals let for 7% less on average. At renewal, rent increases are capped by Decree 43 of 2013, according to how far your rent sits below the Dubai Land Department rental index.

• Rent up to 10% below the index: no increase.
• 11% to 20% below the index: 5% maximum.
• 21% to 30%: 10%. 31% to 40%: 15%. More than 40%: 20%.

An increase must be notified at least 90 days before the lease expires. Since January 2025, the benchmark has been the Dubai Land Department's Smart Rental Index, calculated building by building.

Who pays what on an annual lease in Dubai

On an annual lease, a large share of running costs moves to the tenant. The owner keeps the building service charge and maintenance.

• Service charge (the building's annual owners' charges, billed per square foot): yours under either option. Your tower's figure is on the Dubai Land Department index.
• DEWA (electricity, water, cooling): the tenant opens the account and pays the bills. The municipality housing fee, 5% of the registered annual rent, is added to the tenant's DEWA bills in 12 instalments.
• Ejari (the mandatory registration of the lease with the Dubai Land Department): registration is the landlord's duty, the fees are the tenant's unless the contract says otherwise. Budget AED 177.75 online or about AED 220 at an approved centre.
• Maintenance: unless agreed otherwise, Law 26 of 2007 makes you responsible for works and repairs that affect the tenant's use of the property.

As a short-term rental, all of these costs stay with you, plus VAT, platform fees, the management commission, internet and the holiday home permit. The line-by-line detail is in our Marina 1-bedroom calculation.

Short-term vs long-term rental in Dubai: the 12-month table, costs included

The table compares the same 800 sq ft 1-bedroom in Dubai Marina, with a service charge of AED 16 per sq ft. On the annual lease side, two cases: a renewal with no void, and a new tenant found after one empty month. On the short-term side, the three scenarios from our reference calculation, for a non-resident owner, every booking made through Airbnb, 20% management commission.

• Renewed lease: Property Finder's average rent on renewals, lease managed by you. If you delegate the lease, deduct your manager's fees.
• New lease: Property Finder's average rent on new contracts over 11 months, plus one month of DEWA bills during the void (AED 750, the monthly average used for short-term letting).
• Ejari: counted as your cost to show the floor, although the law places it on the tenant unless the contract says otherwise.
• Short-term: low scenario at AED 550 a night and 40% occupancy (the share of nights booked), central at AED 700 and 55%, high at AED 900 and 70%. Cleaning is paid by the guest and left out of the calculation.
• DET permit: AED 370 for a studio or 1-bedroom. Dubai's relief package of 21 May 2026 announces an exemption from permit fees, with timing set by each authority.
• VAT on the annual rent: the table counts none. Ask your adviser to confirm the VAT treatment of your lease.

Both sides share the same exclusions: furnishing, insurance, major maintenance, mortgage payments and tax. An annual lease can be signed unfurnished. Short-term letting requires a furnished, equipped property, an upfront cost the table does not count.

What gross income must short-term letting reach to match an annual lease in Dubai Marina?

After VAT, platform fees and commission, each gross dirham earned from short-term letting leaves about AED 0.61. That then has to cover AED 26,838 of fixed costs a year. To match an annual lease netting AED 79,000 to 81,000, short-term letting therefore has to bring in AED 172,000 to 176,000 gross over 12 months.

• At AED 700 a night: about 246 to 251 nights let, or 67% to 69% occupancy.
• At AED 900 a night: about 191 to 195 nights let, or 52% to 53% occupancy.

Market data places this threshold. According to AirROI, from August 2025 to July 2026, average occupancy for Marina listings is 41.1%, and 27.3% from June to August. The observed median annual revenue is about AED 107,000, and the top quartile exceeds AED 173,000. The AED 172,000 to 176,000 threshold therefore sits at the level of the top quartile of Marina listings. The number of nights needed to cover fixed costs alone is worked out in the Marina break-even nights.

1. Note the rent on your current lease, or the average rent on new contracts in your tower.
2. Subtract your tower's service charge and the fees you pay as landlord: that is your annual lease net.
3. Add the fixed costs of short-term letting to that net: service charge, 12 months of DEWA, internet, DET permit.
4. Divide the total by the share of each gross dirham left after VAT, platform fees and commission: the result is the gross income to reach.

Switching from an annual lease to short-term letting: what Dubai law says

A current annual lease continues at expiry unless the law provides a ground to end it. Article 25 of Law 26 of 2007, as amended by Law 33 of 2008, lists four grounds for eviction at expiry: demolition or reconstruction, major restoration certified by the municipality, recovery for the owner's own use or a first-degree relative's, and sale of the property. Each ground requires 12 months' notice, served through a notary public or by registered mail.

• Short-term letting is not among these four grounds. In practice, the switch therefore depends on the tenant leaving.
• A tenant who wants to let the property short-term must hold the right to sublet under the lease and obtain their own DET permit.
• The property must then be registered as a holiday home with the Department of Economy and Tourism. The steps are set out in the DET permit process and in Dubai's legal framework.

Timing matters as much as the calculation. The 12 months' notice, then furnishing and listing, push the first short-term income back by at least one season.

What Flatlab does

Flatlab was founded in Dubai in 2019. In Dubai, we handle the DET permit, distribute your property on Airbnb, Booking, Bayut and Dubizzle, and charge 20% all-in, cleaning and linen included. You receive a monthly line-by-line statement, and the mandate has a 3-month notice period. Our estimate gives you a 12-month net projection to set against the rent on your current lease.

FAQ

Airbnb vs long-term rental in Dubai: which earns more?

For an 800 sq ft 1-bedroom in Dubai Marina, the annual lease leaves about AED 79,000 to 81,000 net over 12 months. Managed short-term letting leaves AED 22,000 to 115,000 depending on the scenario, and beats the annual lease above about AED 172,000 to 176,000 of gross income.

What is the annual rent for a 1-bedroom in Dubai Marina?

Property Finder records an average of AED 101,015 for new contracts and AED 94,073 for renewals. Bayut's H1 2026 report gives AED 103,000, based on asking prices.

Can my tenant sublet my Dubai apartment on Airbnb?

Only if the lease gives the tenant the right to sublet, and with a holiday home permit issued by the Department of Economy and Tourism.

How long does it take to get a let property back in Dubai?

At expiry, notice is 12 months, through a notary public or by registered mail, and only on one of the four grounds set by law: demolition, major restoration, own or family use, sale.

This article is for information only. It does not replace professional legal or tax advice.