Dubai’s new Rental Index and building star rating system are reshaping landlord strategies, with many now favoring long-term rentals over short-term stays.

According to market sources, the number of new homes entering the short-stay rental market has slowed in 2024. Real estate agents report that several landlords, impressed by strong returns on long leases, are pulling back from holiday rentals.

One agent revealed that three landlords switched around 30–40 units from short-term to annual leases—and quickly secured tenants at above-market rates.

Buildings with higher star ratings under the new system can demand premium rents. As new, higher-rated buildings continue to be delivered, experts expect more landlords to take advantage of long-term lease opportunities for better income stability and returns.