Palm Jumeirah
Iconic waterfront location, high luxury positioning, lower occupancy compensated by high rates
STR (Airbnb)
3.8%
1BR annual yield
LTR (Long-Term)
4.1%
1BR annual yield
Winner
LTR
7.2% delta
STR Analysis (1BR)
Nightly RateAED 550
Avg Occupancy72%
Annual Nights263 nights
Gross Annual RentAED 144,540
Fees & Costs (Annual)
Tourism Dirham (263 nights)AED 5,260
Cleaning (263 stays)AED 31,560
Platform Fee (Airbnb 12%)AED 17,345
Property Management (20%)AED 28,908
Net Annual IncomeAED 61,495.2
Yield3.8%
LTR Analysis (1BR)
Annual RentAED 78,000
Gross Annual RentAED 78,000
Costs (Annual)
Maintenance, agent fees, vacancy loss (15% of rent)AED 11,700
Net Annual IncomeAED 66,300
Yield4.1%
Break-Even Analysis
To match the LTR net yield of 4.1%, your STR would need:
Minimum Occupancy
33%
Current market: 72%
Annual Nights
121
At 550 AED/night
Status
STR Wins
39.0% margin
Why Choose STR?
- •Higher potential yield (3.8% vs 4.1%)
- •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.