The UAE Emerges As One Of The World’s Fastest-Growing Short-Term Lettings Markets
Anna Skigin, Founder & CEO of short-term property management firm Frank Porter, explains what’s driving the surge – and how investors can stay ahead
The UAE is now among the world’s fastest-growing short-term lettings markets, in terms of active listings and revenue growth, according to Anna Skigin, Founder and CEO of UAE-based short-term property management firm Frank Porter.
Based on key metrics including rapid growth in licensed short-term rental units high occupancy rates across prime districts, rising visitor arrivals, and sustained real estate investment flows, Dubai and Abu Dhabi’s short-term rental markets are outperforming global cities such as Sydney, Singapore, Tokyo and New York, where strict licensing rules and zoning limitations constrain expansion.
“The UAE’s short-term rental market is not growing by chance,” says Skigin. “It is growing because policy, infrastructure, tourism strategy, and investor appetite are aligned.
“At Frank Porter, we see this momentum daily – from international investors entering the market to repeat guests choosing professionally managed apartments over traditional hotel stays.”
Two key performance indicators underline the continued strength of the market: Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR), both of which are rising in the UAE, according to Frank Porter data.
Increasing ADR, the average price guests pay per night, signals that properties are commanding higher rates, reflecting sustained demand and growing confidence in the quality of accommodation on offer. RevPAR measures overall revenue performance, combining both nightly rates and occupancy levels. When RevPAR increases, it indicates that properties are achieving stronger pricing while maintaining high booking levels.
“The upward movement in both ADR and RevPAR demonstrates a market that is expanding in both value and performance,” Skigin adds. “Operators are successfully increasing returns while sustaining strong demand.”
The broader tourism backdrop reinforces this trajectory. International visitor numbers in the UAE continued to grow in 2025, with Dubai hosting nearly 19.6 million overnight visitors, up 5 per cent from 18.7 million in 2024, underscoring sustained demand and the destination’s ongoing tourism momentum.
Skigin attributes the UAE’s outperformance to pro-investment policies, streamlined licensing frameworks and a tourism strategy aligned with real estate growth. “This alignment between government vision and private sector execution creates an environment where the sector can expand sustainably,” she explains, citing the government-driven tourism and events strategy and the UAE’s positioning as a safe, luxurious lifestyle and business hub.
As the market evolves, guest expectations are also rising. In 2026, travellers are seeking impeccable interior design, seamless digital check-in, fast WiFi and remote-work readiness, wellness-oriented spaces, and flexible stay durations.
Frank Porter’s in-house design team reports growing demand for aesthetically pleasing hotel-inspired interiors, work-from-home functionality, outdoor living spaces and Instagram-worthy design details, alongside consistent quality across listings. This is key to standout spaces – they can’t afford to be basic, they must look upgraded, while also balancing comfort and uniqueness to compete in a bustling market.
And Skigin notes strong demand in established areas including Dubai Marina, Downtown Dubai, Business Bay and Palm Jumeirah, while emerging Emirates and lifestyle-led districts such as D3 continue to show upside potential.
However, competition is intensifying. “Professional management is key,” she says. “Performance increasingly depends on dynamic pricing, hotel-grade housekeeping, guest communication speed, high-quality listing content and strict regulatory compliance – all of which we manage day-to-day for our clients.”
She advises owners to adopt a four-fold strategy to maintain profitability: remain compliant with evolving regulations, invest in energy-efficient appliances, maintain high standards when it comes to interior design, plan for flexible stays and maintain strong guest ratings.
While short-term rentals continue to gain popularity, Skigin emphasises they complement rather than replace hotels. “Hotels continue to dominate corporate and event-driven stays, while short-term rentals capture families, couples, long-stay professionals, remote workers and group travellers,” she explains.
Her conclusion is clear: “The UAE is not just participating in the global short-term rental movement. It is shaping its next chapter.”
