Renting in the uae short term rentals vs long term rentals
The United Arab Emirates (UAE) has established itself as a major international hub, attracting professionals, tourists, and expatriates from all over the world. To rent a property in Dubai, people are forced to choose between short-term and long-term rentals as the demand for housing continues to rise. In this blog, we will compare the advantages and disadvantages of short-term and long-term rental options and examine the dynamics of renting in the UAE.
Short-term Rentals:
Types of Short-term Rental in Dubai:
- Serviced Apartments: These are fully furnished living spaces equipped with amenities akin to hotels, providing a comfortable and convenient stay for short durations.
- Holiday Homes: Private residences available for short-term rental, offering a temporary retreat with the comforts of home for a brief period.
- Hotels: Ideal for travellers, hotels provide a range of room options, services, and amenities, catering to various preferences and needs during short stays.
Advantages of short-term rentals:
- Flexibility and Convenience:Short-term rentals offer unparalleled flexibility. Whether you’re a tourist exploring the wonders of Dubai or a professional on a short-term assignment, the convenience of a furnished apartment for a limited duration is unmatched.
- Diverse Options:The UAE boasts excess short-term rental options, from luxurious apartments to cozy studios. This variety caters to different preferences and budgets, ensuring there’s an ideal temporary home for everyone.
- Cost Considerations:Even though short-term rentals may appear to be more expensive per night, they can be more affordable for shorter stays. Short-term rentals become an appealing option for people who aren’t sure how long they will be staying in a place. This is because they don’t require the commitment and upfront costs of long-term leases.
- Amenities and Services:For short-term rental property in Dubai, many short-term rental properties come fully furnished with services like housekeeping, Wi-Fi, and concierge services. This makes it easy to live, which is especially helpful for people who want to save money on something other than furnishing a long-term home.
Long-term Rentals In Dubai:
Types of long-term Rental in Dubai:
- Apartments: Ranging from studio apartments to larger multi-bedroom units available in various residential complexes.
- Villas: Detached or semi-detached houses, often with private gardens, pools, and multiple bedrooms, located in different communities.
- Townhouses: Similar to villas but typically more compact, often part of gated communities, offering shared amenities.
- Duplexes: Multi-level units offering more space and privacy, commonly found in high-rise buildings or certain communities.
- Penthouses: Luxurious units on the top floors of buildings, featuring expansive views and often equipped with high-end amenities.
Advantages of long-term rentals
- Stability and Cost Savings:Long-term rentals provide security and can be more cost-effective for people wanting to remain in the UAE for an extended period. Lease agreements typically have lower monthly rates, which makes them a more cost-effective option over time.
- Integration into Local Community: When people rent a house for a long time, they can become a part of the community, connect with their neighbours, and become a part of the social fabric. This feeling of having a place is many times missing in transient momentary rental situations.
- Customization and Personalization: Long-term rental property in Dubai allow tenants to personalize their living spaces, whether it’s through decorating or even making minor modifications. This level of customization is only feasible in some short-term rental agreements.
- Financial Commitment: Committing to a long-term rental involves a financial obligation, including security deposits and potentially furnishing the property. Although it entails an initial investment, committing to long-term rentals can prove to be more economically advantageous over time compared to engaging in frequent short-term rentals.
Apart from advantages, you need to consider the prices of both types of rentals. Let’s check it out!
What is the pricing structure for short-term rentals in the UAE?
| Accommodation Type | Price Range (Monthly) | Description |
| Serviced Apartments | AED 5,000 – AED 20,000+ | Range varies based on location, size, and facilities. Higher-end options offer more amenities and luxury services. |
| Holiday Homes | AED 8,000 – AED 25,000+ | Prices differ by location, season, and property type. Furnished properties might have higher rates. |
| Hotels | AED 6,000 – AED 30,000+ | Long-term stay options at hotels can range widely depending on the hotel’s star rating, facilities, and duration of the stay. |
What is the pricing structure for long-term rentals in the UAE?
Long-term rentals in the UAE typically span an annual range of AED 25,000 to 200,000. Dubai and Abu Dhabi command higher rental costs compared to other regions in the UAE, driven by increased demand and a greater abundance of luxurious properties. The average annual rent in Dubai, reflective of its dynamic real estate landscape, is in line with these factors.
Apartment:
| Property Type | Average Rent in Dubai |
| Studio Apartment | AED 45,000 |
| 1- bedroom apartment | AED 65,000 |
| 2-bedroom apartment | AED 110,000 |
| 3- bedroom apartment | AED 175,000 |
Villas:
| Property Type | Average Rent in Dubai |
| 3- bedroom villa | AED 180,000 |
| 4- bedroom villa | AED 325,000 |
| 5- bedroom villa | AED 450,000 |
Townhouses:
| Property Type | Average Rent in Dubai |
| 3- bedroom townhouse | AED 135,000 |
| 4- bedroom townhouse | AED 250,000 |
| 5- bedroom townhouse | AED 380,000 |
Moving in Expenses:
| Dubai |
| DEWA Deposit – AED 2000 |
| Security Deposit – 1 or 2 month’s rent |
| Agency fees – 2-5% of annual rent |
| Moving cost – AED 800-4500 |
Deciding between short-term and Long-term rental property in Dubai is a subjective choice without a definitive answer. Short-term rentals appeal to those prioritizing lower upfront costs, convenience, and flexibility, even though they tend to be comparatively more expensive. On the other hand, long-term rentals provide stability and security, offering the assurance of a more extended-term residence.
Consider short-term rentals if you:
- Are you in the UAE for a brief period or are new to the country?
- Wish to explore a community or building before committing long-term.
- Prefer the flexibility of moving frequently.
- Value the convenience of a fully furnished property with included bills.
Consider long-term rentals if you:
- Plan to reside in the UAE for an extended duration.
- Seek a more economical overall cost.
- Prepare to commit to a property and community for at least a year.
- Prefer the option to furnish a property according to your preferences.
- Dislike the idea of frequent relocations.
Summary
Choosing between short-term and long-term rentals in the UAE ultimately depends on individual circumstances and preferences. Short-term rentals offer flexibility and convenience, catering to the transient nature of many residents and visitors. On the other hand, long-term rentals provide stability, cost savings, and a sense of community for those looking to establish a more permanent presence in the country.
As the UAE continues to evolve as a global destination, the real estate market adapts to the diverse needs of its residents. Whether you’re drawn to the allure of short-term luxury or the stability of a long-term home, the Emirates has options to suit every lifestyle. To rent a property in Dubai, Contact us for more short-term and long-term rental options in Dubai.
