GET 10% OFF ON YOUR FIRST MONTH AT COLIFE
Sig up and get a promocode with a 10% discount on your first month at COLIFE valid for 3+ months contracts.
COLIFE BLOG
Ramadan and Real Estate: Why Short-Term Rentals Surge During This Period
Ramadan has a significant impact on the Dubai property market. During this period, business activity slows down, which also affects the rental market. Rental demand temporarily falls, which reduces prices.
Landlords and property management companies are willing to offer flexible terms to attract tenants. Available apartments do not sell out so quickly, so there is time to make an informed choice.
The demand for Dubai short-term rentals during Ramadan is influenced by this key factors:
Last Ramadan season the average occupancy rate for short-term rentals in Dubai was over 50%.
Landlords and property management companies are willing to offer flexible terms to attract tenants. Available apartments do not sell out so quickly, so there is time to make an informed choice.
The demand for Dubai short-term rentals during Ramadan is influenced by this key factors:
- Seasonal fluctuations. During the summer months, including Ramadan, rental demand decreases due to the heat and holiday season.
- Economic conditions. During periods of economic downturn or uncertainty, tenants may postpone decisions, which reduces demand.
- Events and tourism. Large events or increased tourism may temporarily increase short-term rental demand Ramadan.
- Market supply. An increase in the number of available rental properties may lead to lower prices and a change in demand.
Last Ramadan season the average occupancy rate for short-term rentals in Dubai was over 50%.
Why Short-Term Rentals Skyrocket During Ramadan
The Dubai short-term rental market sees significant growth during Ramadan, driven by several key factors:
Religious Ramadan tourism in Dubai and family reunions
During Ramadan, Dubai attracts many tourists from the GCC seeking to celebrate the holy month in a culturally rich environment. This leads to an increase in demand for Ramadan short-term rentals. Moreover, over 70% of residents dedicate more time to family gatherings and exploring new places during the holy month.
Expat travel and temporary stay needs
Many expats working in Dubai use Ramadan to visit family or travel, freeing up their apartments for short-term rentals. This creates additional supply in the market, meeting the needs of short-term visitors.
Increase in business visitors and corporate rentals
Despite the general slowdown in business activity during Ramadan, some companies continue to operate, bringing in specialists for short-term projects. This is driving demand for corporate rentals.
Demand for luxury holiday rentals in Dubai during Ramadan
Dubai, known for its luxury properties, is attracting wealthy visitors looking for high-end holiday rentals during Ramadan.
A combination of religious tourism, changes in expat needs, business activity, and interest in luxury holidays are thus driving a noticeable rise in Dubai short-term rentals during Ramadan.
Looking for a short-term rental in Dubai this Ramadan? Explore Colife’s fully furnished apartments for a wonderful stay. Check Listings.
A combination of religious tourism, changes in expat needs, business activity, and interest in luxury holidays are thus driving a noticeable rise in Dubai short-term rentals during Ramadan.
Looking for a short-term rental in Dubai this Ramadan? Explore Colife’s fully furnished apartments for a wonderful stay. Check Listings.
Impact of Ramadan on Real Estate Trends in Dubai
Ramadan has a significant impact on the Dubai property market, causing certain changes in short-term rental prices and occupancy rates in key areas of the city.
Ramadan sees a slowdown in business activity, resulting in a decrease in demand for short-term rentals.
Landlords seek to attract tenants by offering additional incentives and discounts. And Dubai developers offer discounts and payment deferrals to stimulate demand during Ramadan.
Despite the overall decline in demand, some areas of Dubai maintain high occupancy rates due to their appeal to tourists and investors.
Downtown Dubai
The city center, home to iconic landmarks such as the Burj Khalifa and Dubai Mall, has seen short-term rental occupancy rise by 10-20% as visitors enjoy Ramadan events and fine dining.
Dubai Marina
Waterfront living, easy access to Iftar cruises and luxury accommodation options boost occupancy by 12-18% during the holy month.
Palm Jumeirah
Luxury accommodation options are in high demand as affluent travellers book luxury villas and serviced apartments, leading to occupancy increases of 15-25%.
JBR
The combination of beachfront living and vibrant nightlife makes this area a preferred choice, with occupancy increasing by 10-15% compared to other months.
Look at these 5 Dubai neighborhoods for high-return apartment investments in 2025.
Ramadan thus has a complex impact on the Dubai property market, with short-term rental prices generally falling, but key areas maintaining high occupancy rates due to their attractiveness and strong demand.
Ramadan sees a slowdown in business activity, resulting in a decrease in demand for short-term rentals.
Landlords seek to attract tenants by offering additional incentives and discounts. And Dubai developers offer discounts and payment deferrals to stimulate demand during Ramadan.
Despite the overall decline in demand, some areas of Dubai maintain high occupancy rates due to their appeal to tourists and investors.
Downtown Dubai
The city center, home to iconic landmarks such as the Burj Khalifa and Dubai Mall, has seen short-term rental occupancy rise by 10-20% as visitors enjoy Ramadan events and fine dining.
Dubai Marina
Waterfront living, easy access to Iftar cruises and luxury accommodation options boost occupancy by 12-18% during the holy month.
Palm Jumeirah
Luxury accommodation options are in high demand as affluent travellers book luxury villas and serviced apartments, leading to occupancy increases of 15-25%.
JBR
The combination of beachfront living and vibrant nightlife makes this area a preferred choice, with occupancy increasing by 10-15% compared to other months.
Look at these 5 Dubai neighborhoods for high-return apartment investments in 2025.
Ramadan thus has a complex impact on the Dubai property market, with short-term rental prices generally falling, but key areas maintaining high occupancy rates due to their attractiveness and strong demand.
How Hosts and Property Owners Can Capitalize on Ramadan Rentals
During Ramadan, Dubai property owners can significantly increase their revenue by tailoring their listings to the specific needs of their guests. Dubai real estate sector sees boom in short-term rentals as investors report 20% higher returns over traditional leases.
Here are some key strategies to consider:
Optimizing Airbnb listings for Ramadan bookings
Ramadan specials and flexible stay options
Providing Family-Friendly and Halal-Compliant Facilities
Ramadan-friendly offerings allows Dubai property owners to not only increase revenue but also provide guests with a comfortable and satisfying stay.
Here are some key strategies to consider:
Optimizing Airbnb listings for Ramadan bookings
- High-quality photos and descriptions. Professional images and detailed descriptions of your property increase the appeal of your listing.
- Instant booking. Enabling instant booking speeds up the booking process and attracts guests who want immediate bookings.
- Quick response to inquiries. Prompt responses to potential guests’ questions increase trust and the likelihood of booking.
Ramadan specials and flexible stay options
- Discounts and incentives. During Ramadan, landlords offer discounts of up to 10-20% and additional incentives such as free parking or deferred payment options to attract renters.
- Flexible rental terms. Offering short-term rental options and flexible payment terms makes your property more attractive to guests planning a stay during Ramadan.
Providing Family-Friendly and Halal-Compliant Facilities
- Family-Friendly Facilities. Providing cots, high chairs and safe play areas makes properties attractive to families with children.
- Halal Facilities. Providing kitchen facilities for preparing Halal food and information on nearby mosques and Halal restaurants caters to the needs of Muslim guests.
- Iftar and Suhoor Arrangements. Providing information on local Iftar tents where guests can enjoy traditional cuisine and cultural programmes helps to immerse guests in the Ramadan atmosphere.
Ramadan-friendly offerings allows Dubai property owners to not only increase revenue but also provide guests with a comfortable and satisfying stay.
Future Predictions for Short-Term Rentals During Ramadan
The Dubai short-term rental market is showing steady growth, especially during Ramadan, offering attractive opportunities for investors.
Growth Real Estate Trends Ramadan
Growth Real Estate Trends Ramadan
- The initial two weeks of Ramadan 2024 saw heightened activity, with 5,608 transactions recorded, reflecting a 28% increase from 2023. The total sales value during this period amounted to AED 14.8 billion, a 38% rise compared to the previous year.
- Rent growth. Forecasts for 2025 point to a moderate rental growth of 5-10% in Dubai, driven by strong demand from new residents and the emirate’s growing population.
- Long-term investment opportunities. High yields: The average return on investment for real estate in Dubai is around 6-10%, depending on the area and type of property. For short-term rentals, yields can exceed 10%.
Wrap Up
The Dubai short-term rental market continues to show steady growth during Ramadan, driven by religious tourism, travel and high demand for premium properties.
Despite price fluctuations, popular areas maintain high occupancy rates due to their status as tourist and business hubs.
For property owners, Ramadan presents a unique opportunity to increase the yield of their properties by tailoring listings, offering flexible rental terms and providing amenities that suit the needs of guests. Investors can also take advantage of this season, given the high yields of Ramadan short-term rentals, growing demand for housing and a positive market outlook.
With Dubai’s expected population and tourist numbers growing in the coming years, short-term rentals will remain an attractive and profitable segment of the property market, especially during periods of high demand such as Ramadan.
Discover Colife’s fully furnished apartments for an unforgettable and comfortable stay. Whether you're visiting for religious tourism, a family gathering, or a business trip, our accommodations offer convenience, flexibility, and all the amenities you need.
Despite price fluctuations, popular areas maintain high occupancy rates due to their status as tourist and business hubs.
For property owners, Ramadan presents a unique opportunity to increase the yield of their properties by tailoring listings, offering flexible rental terms and providing amenities that suit the needs of guests. Investors can also take advantage of this season, given the high yields of Ramadan short-term rentals, growing demand for housing and a positive market outlook.
With Dubai’s expected population and tourist numbers growing in the coming years, short-term rentals will remain an attractive and profitable segment of the property market, especially during periods of high demand such as Ramadan.
Discover Colife’s fully furnished apartments for an unforgettable and comfortable stay. Whether you're visiting for religious tourism, a family gathering, or a business trip, our accommodations offer convenience, flexibility, and all the amenities you need.
Need help finding an apartment in Dubai? We can help!
Leave you info and we will contact you shortly to select an apartment for you
You might also like: