Every time short-term stay restrictions are imposed globally, Dubai benefits. Every time a European city imposes restrictions on Airbnb listings, investment in Dubai's short-term rental market immediately increases, according to industry sources.


"Dubai's real estate market saw such a boost when Greece imposed restrictions on short-term rentals last year, prompting global investors to look to Dubai for real estate investments," said Vinayak Mahtani, CEO of bnbme, a property management consultancy specializing in vacation homes.


The same will happen if Spain becomes the next country to impose restrictions on Airbnb listings.


Dubai's short-term rental market could easily absorb more investment in this category. Landlord investors see the solid returns generated by the Dubai rental market, and that's all they need to make a decision.


Spain ordered Airbnb to reduce its listings in the country by nearly 66,000 homes due to concerns about "overtourism" and domestic rental price hikes. As for Greece, new restrictions came into effect earlier this year, including a ban on new short-term rental properties in certain areas of Athens, among other places.


In Dubai, short-term rental listings number approximately 30,000-40,000. "But they don't come close to the city's 130,000 hotel rooms and apartments," Mahtani said. "The Dubai Department of Economy and Tourism has also established strict regulations regarding the maintenance of short-term rental properties, how they should be rented out, and what companies operating in this business must follow."


Most importantly, back in early 2000, authorities made it clear that developers could not interfere with the short-term rental of properties in their buildings, unless the SPA (sales and purchase agreement) explicitly restricted this. This meant that the rules-based industry could grow unimpeded for many years. This is precisely the foundation real estate investors need.


However, in recent months, some real estate investors have shifted their properties from short-term rentals to the long-term one-year rental market, which in Dubai continues to show average growth of 5%-15% with new renewals. Even so, the short-term rental market is finding its investors/landlords, and its growth rate may accelerate in the weeks following the summer.


Airbnb continues to grow as Dubai remains a major tourist destination, and we are seeing growth due to restrictions in other markets. The number of short-term rental listings in Dubai now exceeds 30,000.


Dubai will continue to see the delivery of more apartment buildings until the end of 2025 and beyond, which will also fuel the rental market, both long-term and short-term.


Sabine El Najjar, of a vacation rental agency, believes that regulations are already in place to regulate the short-term rental market — and they do so effectively.


"The UAE has long taken a proactive and collaborative approach to regulating the short-term rental market," Sabin said.


"By working closely with the private sector, authorities have ensured that investors can take advantage of this opportunity with clarity and confidence, prioritizing the safety of guests and the well-being of residents. Therefore, we do not foresee any disruptions or risks to our operations," she added.


And if an investor previously considered buying property in Spain or Greece to rent it out on Airbnb, they may now change their mind and invest those funds in Dubai.


To invest in Dubai real estate correctly, you need the support of a qualified broker. Inside Realty experts can help you invest to off plan properties in Dubai for rent on Airbnb.