Dubai has become a global hotspot for tourism, attracting millions of visitors each year. With its growing demand for short-term stays, starting a holiday home business in Dubai in 2025 offers a profitable opportunity. Whether you’re a UAE resident or a foreign investor, the business landscape is welcoming. However, to succeed, you must comply with regulations, understand the market, and offer a premium guest experience.
And if you want a hassle-free, profitable setup, StayBetterDXB can help you get started, manage your holiday home, and maximize your returns.
Understanding the Holiday Home Market in Dubai
Short-term rentals in Dubai are booming. Tourists, business travelers, and digital nomads are increasingly choosing holiday homes over hotels. The flexibility, affordability, and homely feel of vacation rentals make them ideal for modern travelers.
Popular locations such as Dubai Marina, Downtown Dubai, Palm Jumeirah, and Jumeirah Village Circle (JVC) attract high occupancy. The Dubai government, through the Dubai Department of Economy and Tourism (DET), supports regulated short-term rentals, encouraging investment in the holiday home sector.
The Airbnb model has been widely accepted. Many owners list their units on platforms like Booking.com, Expedia, Vrbo, and Airbnb Dubai.
Why 2025 is the Best Time to Start
Dubai’s tourism strategy 2030 aims to attract over 40 million tourists annually. The city’s infrastructure, visa reforms, and investment in entertainment make it ideal for holiday home businesses. The government continues to support the sector with clear holiday home regulations and digital licensing.
In 2025, with a stable economy and clear holiday home regulations, it’s the perfect time to invest. Expo 2020’s legacy has left Dubai with improved connectivity and international visibility, increasing short-term rental demand.
Legal Requirements to Start a Holiday Home Business
Starting a short-term rental in Dubai is legal, but regulated. You must follow DTCM (Dubai Tourism and Commerce Marketing) guidelines to operate.
Do You Need a License?
Yes, and it’s non-negotiable. You must register your property with Dubai Tourism (DTCM) and apply for a holiday home license. It’s a straightforward process, but you need to get it right from the start.
There are two types of licenses:
- Single unit license (for individual property owners)
- Multiple unit license (for businesses managing multiple homes)
If you’d rather not deal with the paperwork, StayBetterDXB can take care of the entire process—from license application to guest registration.
Step-by-Step Guide to Get a Holiday Home License
Here’s how to get started:
- Choose the property – Ensure it meets DTCM’s minimum quality standards.
- Get Ejari registration – Register the lease with Ejari (mandatory for tenants).
- Apply via DTCM portal – Create an account on the DET Holiday Home portal.
- Submit required documents – Title deed or tenancy contract, passport copy, Emirates ID, DEWA bill.
- Pay fees – The license fee varies depending on the number of units.
- Approval and listing – Once approved, you can list your unit on OTA platforms.
License Validity: 1 year, renewable.
If this sounds overwhelming, we offer full licensing services — handle applications, compliance checks, and documentation, saving you weeks of work.
Once approved, you’re good to list on Airbnb and other platforms. You can also let StayBetterDXB list and manage your property under their license—great for investors living abroad.
Costs to Start a Holiday Home Business
Below is a detailed breakdown of typical startup costs:
| Startup Item | Estimated Cost (AED) |
|---|---|
| DTCM Holiday Home License (1 Unit) | 1,500 – 1,700 |
| Ejari Registration | 220 – 250 |
| DEWA Setup | 2,000 – 4,000 (refundable deposit included) |
| Furnishing & Decor | 15,000 – 30,000 |
| Cleaning & Setup Services | 500 – 1,500 |
| Professional Photography | 300 – 800 |
| OTA Commission (Airbnb, etc.) | 3% – 15% per booking |
| Monthly Maintenance Budget | 500 – 1,000 |
StayBetterDXB offers fully-managed holiday home solutions, so if you’re not in Dubai or don’t want the headache, they can do it all for you.
Choosing the Right Location
Location plays a key role in your success. Tourists prefer areas close to attractions, beaches, or business centers. Consider:
- Palm Jumeirah: Luxury travelers
- Downtown Dubai: Business and leisure mix
- Dubai Marina: Vibrant nightlife
- JVC & Business Bay: Affordable and family-friendly
Proximity to public transport, malls, and landmarks adds value.
Properties near the metro, malls, or beaches attract more bookings. StayBetterDXB can also help you choose the right area and property type for maximum ROI.
Furnishing and Setup Standards
Dubai Tourism sets specific standards for holiday homes. Your property must include:
- High-speed Wi-Fi
- Clean bedding, towels, toiletries
- Fire extinguisher and smoke detectors
- Internet and basic appliances
- Air conditioning and functioning utilities
Furnish with modern, neutral themes. Use professional interior decorators if possible. Good photos sell the experience—invest in high-quality visuals.
Modern interiors and Instagram-worthy décor help attract bookings. If you want your setup done professionally, StayBetterDXB offers staging, styling, and furnishing support.
Working With Holiday Home Management Companies in Dubai
If you’re not based in Dubai or prefer passive income, hire a holiday home management company. These companies handle:
- Guest check-in and communication
- Cleaning and maintenance
- Pricing and occupancy optimization
- Listing creation and OTA management
Top holiday home operators in Dubai include: StayBetterDXB, Frank Porter, Maison Privee, Deluxe Holiday Homes, and Blueground.
Check contracts carefully. Most companies charge 20% to 30% commission on monthly revenue.
Marketing Your Holiday Home in Dubai
You need visibility to succeed. Here’s how to market effectively:
Use Leading Platforms
- Airbnb
- Booking.com
- Agoda
- Vrbo
Create Compelling Listings
- Write strong, keyword-rich titles
- Use short bullet-point features
- Highlight amenities, nearby attractions
Invest in Visuals
- Hire a professional photographer
- Add 3D virtual tours if possible
Build a Website
Having your own website boosts credibility. Use it for:
- Direct bookings
- SEO blog posts
- Collecting guest reviews
Leverage Social Media
Use Instagram and Facebook to promote:
- Behind-the-scenes property tours
- Guest testimonials
- Seasonal offers
Pricing Strategy and Profitability
Pricing affects occupancy. Study competitors using tools like AirDNA or Mashvisor.
Tips to Maximize Profit:
- Use dynamic pricing tools
- Increase rates during peak seasons (Dec–Feb, summer events)
- Offer discounts for long stays
- Add cleaning fees and optional services (e.g., airport pickup)
Track your Revenue per Available Night (RevPAN) to monitor growth.
Providing a 5-Star Guest Experience
Great reviews drive bookings. Guests expect hotel-like service in a homely environment.
Key Areas to Focus On:
- Smooth check-in and check-out process
- Welcome packs (snacks, guides)
- Fast communication (use automated replies)
- Cleanliness and quick response to issues
Consider using smart locks, self-check-in systems, and guest apps for a modern experience.
Tax and Compliance in 2025
Holiday home businesses must comply with UAE’s tax regulations.
VAT on Rentals
If your revenue exceeds AED 375,000/year, register for VAT with Federal Tax Authority (FTA).
Tourism Dirham Fee
Charged per night:
- AED 10 to AED 15/night/unit, paid by guests
Penalties
Operating without a license can lead to:
- AED 20,000 fine (per unit)
- Blacklisting from OTA platforms
Common Challenges
Like any business, holiday homes come with risks:
Seasonality
Tourism dips in the summer. Combat this by:
- Offering monthly stay discounts
- Targeting business travelers and digital nomads
High Competition
Stand out with premium interiors, fast replies, and unique features.
Maintenance Costs
Regular maintenance is key. Schedule monthly inspections to avoid negative reviews.
When you work with StayBetterDXB, you avoid most of these problems. They handle everything while you earn passively.
Future of Holiday Homes in Dubai
Dubai’s tourism growth continues. Remote work culture and digital nomad visas boost demand for extended stays. New communities like Dubai Creek Harbour and Dubai South are becoming popular with investors.
The UAE Government’s supportive ecosystem ensures that the holiday home market remains investor-friendly.
Final Thoughts
Starting a holiday home business in Dubai in 2025 can be highly rewarding. With the right property, proper licensing, and excellent guest service, you can build a strong income stream. Focus on legal compliance, top-notch marketing, and automation to grow fast.
FAQs
Do I need a license for a holiday home in Dubai?
Yes, you must apply for a Holiday Home License through DTCM.
Can expats or foreigners start this business?
Yes, both UAE residents and foreign investors can operate holiday homes.
Is Airbnb legal in Dubai in 2025?
Yes, Airbnb and other platforms are legal if your property is licensed.
How much does it cost to start?
Initial costs range from AED 20,000 to AED 40,000, depending on the property and furnishing.
What locations are best for holiday homes?
Palm Jumeirah, Downtown, Marina, JVC, and Business Bay are top areas.
