Dubai Marina
Premium waterfront location, high tourist footfall, luxury positioning
STR (Airbnb)
4.6%
1BR annual yield
LTR (Long-Term)
4.6%
1BR annual yield
Winner
STR
0.5% delta
STR Analysis (1BR)
Nightly RateAED 450
Avg Occupancy78%
Annual Nights285 nights
Gross Annual RentAED 128,115
Fees & Costs (Annual)
Tourism Dirham (285 nights)AED 5,700
Cleaning (285 stays)AED 28,500
Platform Fee (Airbnb 12%)AED 15,374
Property Management (18%)AED 23,061
Net Annual IncomeAED 55,516.5
Yield4.6%
LTR Analysis (1BR)
Annual RentAED 65,000
Gross Annual RentAED 65,000
Costs (Annual)
Maintenance, agent fees, vacancy loss (15% of rent)AED 9,750
Net Annual IncomeAED 55,250
Yield4.6%
Break-Even Analysis
To match the LTR net yield of 4.6%, your STR would need:
Minimum Occupancy
34%
Current market: 78%
Annual Nights
123
At 450 AED/night
Status
STR Wins
44.4% margin
Why Choose STR?
- •Higher potential yield (4.6% vs 4.6%)
- •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: 78% is market average. Expect variance based on location, listing quality, pricing strategy.