The Greens
Family-friendly community, moderate STR demand, value-oriented positioning
STR (Airbnb)
4.0%
1BR annual yield
LTR (Long-Term)
4.8%
1BR annual yield
Winner
LTR
17.6% delta
STR Analysis (1BR)
Nightly RateAED 320
Avg Occupancy68%
Annual Nights248 nights
Gross Annual RentAED 79,424
Fees & Costs (Annual)
Tourism Dirham (248 nights)AED 4,960
Cleaning (248 stays)AED 18,600
Platform Fee (Airbnb 12%)AED 9,531
Property Management (16%)AED 12,708
Net Annual IncomeAED 33,606.28
Yield4.0%
LTR Analysis (1BR)
Annual RentAED 48,000
Gross Annual RentAED 48,000
Costs (Annual)
Maintenance, agent fees, vacancy loss (15% of rent)AED 7,200
Net Annual IncomeAED 40,800
Yield4.8%
Break-Even Analysis
To match the LTR net yield of 4.8%, your STR would need:
Minimum Occupancy
35%
Current market: 68%
Annual Nights
128
At 320 AED/night
Status
STR Wins
33.1% margin
Why Choose STR?
- •Higher potential yield (4.0% vs 4.8%)
- •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: 68% is market average. Expect variance based on location, listing quality, pricing strategy.