whatsapp
Source: Freepik
Published on 04/06/2025

Dubai Landlords Shift to Long-Term Leases as Star Rating System Boosts Rental Yields

30–40 Units Shifted to Annual Leases as Dubai’s Star-Rated Buildings Command Higher Rents, Short-Term Market Slows in 2024

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.

INNER - 2025-04-04T133104.005

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.