Business Bay
Central business district, strong corporate demand, mid-range positioning
STR (Airbnb)
4.2%
1BR annual yield
LTR (Long-Term)
4.3%
1BR annual yield
Winner
LTR
2.2% delta
STR Analysis (1BR)
Nightly RateAED 380
Avg Occupancy76%
Annual Nights277 nights
Gross Annual RentAED 105,412
Fees & Costs (Annual)
Tourism Dirham (277 nights)AED 5,540
Cleaning (277 stays)AED 23,545
Platform Fee (Airbnb 12%)AED 12,649
Property Management (17%)AED 17,920
Net Annual IncomeAED 45,715.52
Yield4.2%
LTR Analysis (1BR)
Annual RentAED 55,000
Gross Annual RentAED 55,000
Costs (Annual)
Maintenance, agent fees, vacancy loss (15% of rent)AED 8,250
Net Annual IncomeAED 46,750
Yield4.3%
Break-Even Analysis
To match the LTR net yield of 4.3%, your STR would need:
Minimum Occupancy
34%
Current market: 76%
Annual Nights
123
At 380 AED/night
Status
STR Wins
42.3% margin
Why Choose STR?
- •Higher potential yield (4.2% vs 4.3%)
- •Pricing power during peak season
- •Flexibility to live in property or adjust strategy
- •Direct guest feedback and experience control
Why Choose LTR?
- •Hands-off income stream
- •No DET license, DTCM registration required
- •Tenant stability and predictable cash flow
- •Lower management friction and regulations
Important Regulatory Notes
- 1.DET License Required: All STR must be licensed. Application process takes 4-6 weeks. Non-compliance risks fine or property impounding.
- 2.DTCM Registration: Property must be classified and registered. Tourism Dirham collected upfront or via platform remittance.
- 3.Occupancy Realism: 76% is market average. Expect variance based on location, listing quality, pricing strategy.