DIFC

Financial services hub, business traveler focus, premium corporate positioning

STR (Airbnb)

4.4%

1BR annual yield

LTR (Long-Term)

4.4%

1BR annual yield

Winner

LTR

0.9% delta

STR Analysis (1BR)

Nightly RateAED 520
Avg Occupancy74%
Annual Nights270 nights
Gross Annual RentAED 140,452

Fees & Costs (Annual)

Tourism Dirham (270 nights)AED 5,400
Cleaning (270 stays)AED 28,350
Platform Fee (Airbnb 12%)AED 16,854
Property Management (19%)AED 26,686
Net Annual IncomeAED 63,149.38
Yield4.4%

LTR Analysis (1BR)

Annual RentAED 75,000
Gross Annual RentAED 75,000

Costs (Annual)

Maintenance, agent fees, vacancy loss (15% of rent)AED 11,250
Net Annual IncomeAED 63,750
Yield4.4%

Break-Even Analysis

To match the LTR net yield of 4.4%, your STR would need:

Minimum Occupancy

34%

Current market: 74%

Annual Nights

123

At 520 AED/night

Status

STR Wins

40.4% margin

Why Choose STR?

  • Higher potential yield (4.4% 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: 74% is market average. Expect variance based on location, listing quality, pricing strategy.

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