City Walk
Mixed-use community, walkable destination, growing residential demand
STR (Airbnb)
4.1%
1BR annual yield
LTR (Long-Term)
4.4%
1BR annual yield
Winner
LTR
5.6% delta
STR Analysis (1BR)
Nightly RateAED 380
Avg Occupancy72%
Annual Nights263 nights
Gross Annual RentAED 99,864
Fees & Costs (Annual)
Tourism Dirham (263 nights)AED 5,260
Cleaning (263 stays)AED 22,355
Platform Fee (Airbnb 12%)AED 11,984
Property Management (17%)AED 16,977
Net Annual IncomeAED 43,309.44
Yield4.1%
LTR Analysis (1BR)
Annual RentAED 54,000
Gross Annual RentAED 54,000
Costs (Annual)
Maintenance, agent fees, vacancy loss (15% of rent)AED 8,100
Net Annual IncomeAED 45,900
Yield4.4%
Break-Even Analysis
To match the LTR net yield of 4.4%, your STR would need:
Minimum Occupancy
33%
Current market: 72%
Annual Nights
121
At 380 AED/night
Status
STR Wins
38.9% margin
Why Choose STR?
- •Higher potential yield (4.1% vs 4.4%)
- •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: 72% is market average. Expect variance based on location, listing quality, pricing strategy.