Downtown Dubai
Ultra-luxury positioning, Burj Khalifa views, premium nightly rates
STR (Airbnb)
4.2%
1BR annual yield
LTR (Long-Term)
4.4%
1BR annual yield
Winner
LTR
3.8% delta
STR Analysis (1BR)
Nightly RateAED 500
Avg Occupancy75%
Annual Nights274 nights
Gross Annual RentAED 136,875
Fees & Costs (Annual)
Tourism Dirham (274 nights)AED 5,480
Cleaning (274 stays)AED 30,140
Platform Fee (Airbnb 12%)AED 16,425
Property Management (19%)AED 26,006
Net Annual IncomeAED 58,856.25
Yield4.2%
LTR Analysis (1BR)
Annual RentAED 72,000
Gross Annual RentAED 72,000
Costs (Annual)
Maintenance, agent fees, vacancy loss (15% of rent)AED 10,800
Net Annual IncomeAED 61,200
Yield4.4%
Break-Even Analysis
To match the LTR net yield of 4.4%, your STR would need:
Minimum Occupancy
34%
Current market: 75%
Annual Nights
122
At 500 AED/night
Status
STR Wins
41.5% margin
Why Choose STR?
- •Higher potential yield (4.2% 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: 75% is market average. Expect variance based on location, listing quality, pricing strategy.