UAE Holiday Homes Market: End-of-2025 Outlook
As 2025 draws to a close, the UAE’s holiday homes sector remains one of the standout performers in the real estate and tourism landscape. The shift towards short-term rentals has continued throughout the year, with more travellers choosing private homes over hotels, supporting sustained year-on-year growth across key destinations.
Record tourism volumes in 2025 have underpinned strong and stable occupancy levels, particularly in lifestyle-led communities.
For investors, returns from holiday homes have often exceeded those of long-term leasing, especially in established hotspots such as Palm Jumeirah and Jumeirah Beach Residence.
The market has also broadened geographically. New coastal destinations, including Al Marjan Island, have emerged as attractive alternatives, offering relatively lower entry prices and solid upside potential as demand spreads beyond Dubai’s traditional centres.
By the end of 2025, the sector has become noticeably more professionalised. Advances in property technology, data-driven pricing and dedicated holiday home operators have raised service standards and guest expectations, positioning the UAE’s short-term rental market for continued growth into 2026.
Focused on delivering informative, accessible content
