Short-Term Rental (STR): Apartment in DIFC

Apartment short term rental positioning in DIFC. Achieve 63% occupancy with 6.5% gross yield from premium apartment units.

6.5%

Gross Yield

5.2%

Net Yield

63%

Occupancy Rate

AED 3.5M

Median Price

Investment Thesis

Investment-grade apartment positioning in DIFC's Short-Term Rental (STR) market. Premium yield of 6.5% gross with 5.2% net return after all drag. 5-year total projected return: 28.0%.

Evidence Base: Based on 14 verified apartment transactions in DIFC

Institutional-Grade Financial Analysis

Yield Metrics

Gross Annual Yield6.50%
Service Charge (annual)8.0%
Management Fee Drag130.0%
Net Yield (Post-Drag)5.20%

Return Projections

Cap Rate5.20%
Net Operating Income (NOI)AED 179K/year
Median Property PriceAED 3.5M
5-Year Total Return28.0%

Market Evidence

Transaction Sample

14

verified sales this year

Average Price

AED 9.2M

mean acquisition

Price per Sqft

AED 3,027/sqft

market rate

Key Risks

  • Property type market shifts
  • Occupancy volatility
  • Competitive supply growth
  • High-supply market saturation

License Requirements

  • Must register with DTCM
  • obtain tourism license
  • comply with DTCM guidelines on minimum stay policies. Premium buildings often restrict STR without building approval.

Consult your legal advisor to verify compliance requirements for your specific situation.

Frequently Asked Questions

What is the typical gross yield for Apartments in Short-Term Rental (STR)?

Based on market evidence, Apartments in DIFC achieve approximately 6.5% gross annual yield in Short-Term Rental (STR) positioning, with net yield of 5.2% after service charge and management drag.

Is apartment a good investment for Airbnb & holiday rental positioning. DTCM-regulated.?

Yes. Apartments in DIFC show strong evidence with 14 verified sales and institutional-grade yield metrics. Short-Term Rental (STR) offers strong yield potential for this property type.

What are the licensing requirements for this scenario?

Must register with DTCM, obtain tourism license, comply with DTCM guidelines on minimum stay policies. Premium buildings often restrict STR without building approval. Consult with your legal advisor to ensure compliance with all regulations before acquisition.

How much capital appreciation should I expect?

5-year total return projection: 28.0% (yield + 4% annual property appreciation). Historical Dubai real estate shows 3-5% annual appreciation for investment-grade apartments.

What is the median acquisition price for Apartments here?

Median price: AED 3,450,000 (AED 3027/sqft). This reflects current market valuation across 14 verified transactions.

How does this compare to other property types in the same community?

DIFC offers yield opportunities across multiple property types. Visit our community yield guide to compare Apartments with apartments, villas and other investment categories in the same area.

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