Dubai’s Holiday Homes: Sublet Your Apartment or Villa on Airbnb

Dubai’s rental market has been on the rise since the lifting of lockdown restrictions. Want to rent out your Dubai apartment or house on Airbnb or the Booking platform? This could be a goldmine of passive income—even for property owners living outside the UAE full-time. The numbers below tell the whole story: 

Airbnb listings in Dubai have grown by 30% year over year, driven by increasing tourist demand. Plus, Dubai anticipates 25 million visitors this year—a 31.6% jump from 2024. Colife Global, for example, predicts an 18% increase in rentals lasting up to 6 months in 2025.

However, Dubai authorities introduced stricter regulations to ensure compliance with UAE laws and safeguard landlords and tenants. Here’s a quick rundown on the rules of the subletting game to help you make serious money:

Short-Term Leasing Regulations

Dubai has seen a huge spike in flexible living arrangements and has been tightening its rental regulations since 2021.

Now, the Department of Economy and Tourism (DET) issues permits for holiday homes and short-term rentals in Dubai. You might have seen it called the Department of Tourism and Commerce Marketing (DTCM) in earlier publications about the UAE or in other media.

Without DET, you can’t do anything with your Airbnb or Booking rental. The authority’s responsibilities include:

• Overseeing Online Rental Platforms

DET ensures that all short-term rentals follow Dubai’s regulations.

• Registering Real Estate

DET requires mandatory registration of all short-term rental properties.

New Regulations You Need to Know

Ban on Leasing without a License

Since 2024, subletting without DET approval and landlord consent has been illegal.

Hefty Fines for Non-Compliance

Unlicensed listings incur fines ranging from AED 10,000 for first offenses to AED 500,000 for repeat violations.

Those who attempt to sublet the property without a No Objection Certificate from the landlord or landlady quickly get in trouble. In Dubai, the unit owner has the legal power to evict and sue tenants—so don’t risk it.

Also, miss DET’s deadline, and you’ll get delisted from Airbnb.

Short-Term Rental Licenses

Hotel License

Property management agencies dealing with lots of units need this type to operate. It ensures that these companies adhere to strict guest service and amenity standards.

Holiday Home License

Designed for individuals who rent out their properties on a short-term basis. This license is essential for leasing a vacation home. You can get it via DET’s website. More on this further:

How to Get a DET License

To secure a license, you must meet eligibility criteria:

• You need to either own the apartment or villa or have written consent from the landlord to lease it.
• You should have your Emirates ID, title deed, and recent utility bills.
• According to DET’s website, homeowners can register up to 8 units only.

A license costs AED 1,520 (including knowledge and innovation fees).

After submitting your application through the dedicated portal, you will have to wait for just one business day for DET to process your documents.

Your property may also undergo an inspection to meet safety and quality standards. Once DET gives your unit the thumbs-up, you’ll get your license. Just remember to renew it every year.

Restricted vs. Permitted Areas

Certain areas in Dubai have restrictions on short-term rentals due to local regulations or community rules. The three most populated of them are:

Parts of Jumeirah

Gated communities often restrict short-term rentals in their villas. They’re all about a long-term, private living vibe.

Emirates Hills

Luxury villas here have community rules that prohibit short-term rentals to maintain a peaceful residential atmosphere.

Al Barari

Depending on the sub-community and property type, this neighborhood has specific community rules and restrictions on short-term rentals.

On the bright side, Dubai allows short-term rentals in its most tourist and business-friendly areas:

Downtown Dubai

Known for its vibrant lifestyle and attractions, the neighborhood is a prime location for short-term stays.

Dubai Marina

Its waterfront living and proximity to amenities make the area ideal for short-term rentals.

Palm Jumeirah

While generally permitted, be aware of potential villa-specific restrictions, as previously mentioned.

How to Check Property Status

Want to stay out of trouble with the Dubai authorities? Make sure your real estate qualifies for short-term rentals:

1. Consult DET’s zoning map that outlines areas permitting short-term rentals. This tool helps identify if your apartment or house falls within an approved zone.
2. Consult with a real estate agent or broker for detailed insights into specific community rules and regulations on Airbnb rentals.

Step-by-Step Guide for Hosts

1. Get the Owner’s Consent or Verify Your Property Status

• If you are a tenant, secure a No Objection Certificate (NOC) from your landlord or landlady. Subletting without consent will lead to eviction and lawsuits, as mentioned earlier.

• If you are the owner, ensure your property is free of mortgage restrictions.

 

2. Apply for a DET License

Submit proof of ownership (called title deed), Emirates ID, Dubai Electricity and Water Authority (DEWA) bill, and landlord NOC (if you are a tenant) via DET’s application form.

Pay the AED 1,520 fee using a bank account matching the name on the unit title deed—DET’s portal specifically requires this.

3. Sign up on Airbnb

After receiving your license, create an apartment or house listing on Airbnb and link your license number to your listing.

Note that Airbnb will charge Tourism Dirham per room & night from your guests, depending on the type of real estate:

• For a deluxe holiday home, the fee is AED 15/room per night.
• For a standard holiday home, the fee is AED 10/room per night.

 

4. Stay Compliant

It’s recommended that you insure your real estate. Comprehensive insurance coverage will protect against everything–from busted furniture and appliances to structural damage.

In 2025, Dubai introduced a smart lock integration for rentals, which is basically a keyless entry system. It’s part of the city’s smart tourism initiatives. This innovation is a collaboration between the Security Industry Regulatory Agency (SIRA) and DET.

A keyless entry system will provide guests with digital access codes delivered directly to their smartphones—enhancing security while eliminating traditional keys. Smart lock installation is not currently required by law for all rentals in Dubai but might become in the future.

You may have to pass DET inspections for fire alarms, first-aid kits, and keyless entry (if applicable).

 

Tips for Maximizing Earnings with Airbnb

Partner with Licensed Property Management Companies

Teaming with reputable property management agencies guarantees high occupancy rates and streamlines licensing.

Moreover, property management companies in Dubai offer owners remote control over their units and earnings. These agencies handle licensing, maintenance, and guest services, ensuring that your property meets DET’s standards while you remain free of the hustle and time-consuming legal scrutiny. 

Research Before Investing

Understanding rental demand in a neighborhood and unit potential and calculating expected ROI is crucial for successful investment.

That is why you need to identify high-demand areas and communities for short-term rentals in advance. If you doubt you can do this alone, consult with our real estate agents to avoid a costly mistake one might make because of misinformation.

Display License Number in Your Listings

Add your holiday home license number to your listing. This builds trust with guests and ensures regulatory adherence. 

Optimize Your Listings

• Use professional photography and videos to showcase your property’s best features. Reportedly, listings with videos attract more leads and rent out faster than those without.
• Highlight unique amenities and services offered in your residential complex or community.
• Set competitive rates, adjusting for seasonal demand and big events, such as international conferences and fairs.

Enhance Guest Experience

Invest in quality furnishings and amenities to attract positive reviews and maintain high occupancy rates. To stand out from the crowd, consider adding unique touches such as welcome packages, repeat-booking discounts, or personalized services.

If you can’t decide what could improve guest experience, consult an interior designer or a real estate agent.

Stay Updated on Regulations

Dubai’s short-term rental laws are developing rapidly, and staying informed about these updates is crucial.

This includes tracking DET policies or community rules. Any updates on standards for safety, security, and guest experience from other relevant authorities may affect your business, and you will have to adjust quickly. That’s another reason why contracting a professional real estate management agency is beneficial.

By following these steps and strategies, you will definitely succeed in Dubai’s rental market.

Want to dive deeper and see how much you could be raking in? Hit up our agents at Top Address—we can provide detailed market analysis to identify high-demand areas and real estate types for investment. We also help customers from all over the world buy property with Bitcoin and other cryptocurrencies.

Maximize your earnings by investing in real estate that meets DET’s standards and become a successful Airbnb business from the start!