As European holiday hotspots crack down on short-term rentals, Dubai is witnessing a surge in interest from global real estate investors looking for more stable and profitable markets.
Industry experts report that whenever cities like Athens or Barcelona introduce new restrictions on platforms like Airbnb, investor attention shifts almost instantly to Dubai. Vinayak Mahtani, CEO of holiday home specialist bnbme, explained, “We saw this trend gain momentum last year when Greece enforced limits on short-stay listings. Now, with Spain rolling out new restrictions, the pattern is repeating itself.”
Spain recently announced that over 66,000 Airbnb listings will be cut to control over-tourism and rising rents. Greece has also implemented zoning laws that ban short-term rentals in specific residential neighborhoods.
Dubai, meanwhile, offers a contrasting environment: a clear regulatory framework, steady tourism demand, and attractive rental yields. Currently, there are approximately 30,000–40,000 active short-term rental units in the city, dwarfed by the 130,000+ hotel rooms and apartments. Yet, the short-stay sector remains profitable — and tightly governed by the Dubai Department of Economy and Tourism.
“From the beginning, Dubai built its STR market on a foundation of clear rules,” Mahtani noted. “This consistency gives confidence to landlords and property managers alike.”
While some investors are switching their short-stay units to annual leases due to rising rents, many continue to double down on the Airbnb-style model, especially as international markets introduce caps.
Anna Skigin, co-founder of property management firm Frank Porter, estimates that short-stay listings have exceeded 30,000 — and that number is climbing. “Dubai is still booming in tourism, and that’s directly feeding into the rental market,” she said.
Looking ahead, developers are expected to deliver thousands of new units in 2025 and beyond, ensuring the supply keeps up with demand in both the long-term and short-term segments.
For investors previously eyeing Spain or Greece, Dubai now stands out as a more secure and lucrative option for short-term rental investments — a shift that looks set to continue.
