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.
Source: Freepik
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.