What’s on the Horizon for the UAE’s Short Term Rentals Market?

CEO of Frank Porter

By Anna Skigin, Founder & CEO of Frank Porter

The UAE’s short-term rentals sector is entering a more mature and discerning phase. After several years of rapid expansion, the focus is shifting from sheer volume towards quality, professionalism, and experience-led stays.

For operators, investors, and destinations alike, the next chapter will be defined by how well properties are managed, and how memorable the guest experience is.

We’re witnessing an evolution into a more structured and professional ecosystem. Stronger regulatory frameworks, higher service expectations, and clearer hospitality standards are raising the bar for operators. As a result, market sentiment is moving away from emphasising listing numbers, towards fewer, better-managed properties that deliver consistency, reliability, and trust.

This mirrors broader global trends in alternative accommodation, where guests increasingly expect hotel-grade standards in residential settings. Professionally managed homes, clear service protocols, and brand-led approaches are fast becoming essential differentiators, especially as competition intensifies.

Guest experience takes centre stage

Guest experience is now the defining competitive advantage in the short-term rental sector. Price remains important, but is no longer the sole driver of booking decisions. We note that repeat stays and positive reviews are increasingly shaped by how seamless, comfortable, and thoughtfully designed the experience feels.

Well-designed interiors that balance aesthetics with functionality are increasingly expected, rather than optional. Properties that feel both visually appealing and genuinely liveable perform better, particularly when supported by consistent service standards. UAE guests now anticipate fully equipped kitchens, smart home features, comfort-driven layouts and responsive guest support.

Operational excellence is also playing a greater role. Fast response times, reliable check-in and check-out processes, and technology-enabled services are now central to guest satisfaction and brand reputation.

The rise of the Gen-Z traveller

One of the most influential shifts shaping the market is the growing presence of Gen-Z travellers. This digitally native group is redefining expectations around accommodation, with emphasis on design, individuality, and shareability.

For Gen-Z, where they stay is part of the travel experience itself. Visually striking interiors, distinctive design concepts, and spaces that translate well to social media all carry significant weight. These travellers value convenience and ease, but they also expect hotel-quality standards within a more personal, home-like environment.

And location remains critical. Proximity to lifestyle districts, entertainment venues and cultural hubs influence booking decisions, particularly for younger travellers who prioritise walkability and access to experiences over traditional tourist landmarks.

Two markets, one strong proposition

While Dubai remains the UAE’s most established short-term rental market, Abu Dhabi is now gaining momentum as a compelling alternative, driven by major infrastructure and cultural investments.

Dubai continues to appeal to a younger, global and leisure-led audience. Its fast-paced, lifestyle-focused positioning aligns well with short stays, social travel and high-energy experiences. The city’s established tourism infrastructure and constant calendar of events keep annual demand strong.

Abu Dhabi, by contrast, is carving out a more culture-led and destination-driven identity. Projects such as Etihad Rail are improving regional connectivity, while landmark attractions including the Guggenheim Abu Dhabi will boost cultural tourism. An expanding programme of concerts, exhibitions and major events is also helping broaden the capital’s appeal.

Abu Dhabi is also seeing rising demand for professionally managed short-term rentals, particularly for longer, experience-driven stays catering to families, cultural tourists and visitors seeking a slower pace. Together, Dubai and Abu Dhabi offer a complementary proposition that strengthens the UAE’s overall position as a diverse and well-rounded short-term rental market.

I believe the next growth phase will be shaped by a combination of new real estate handovers, maturing demand and closer alignment between hospitality, lifestyle and property development. As new residential projects come online across both emirates, opportunities will increasingly favour operators who can deliver consistent standards at scale.

In 2026, experience-led accommodation will dominate over purely transactional stays. Guests will look for properties that feel integrated into the destination itself, offering more than just a place to sleep. Professional management, thoughtful design and service-driven operations will become the baseline rather than the exception.

About Anna Skigin & Frank Porter: Anna Skigin is the Founder and CEO of Frank Porter – a hassle-free Airbnb management company, launched in Dubai in 2017. Frank Porter maximises returns for the owners, by renting out properties short-term via platforms such as Airbnb, Booking.com and their own Frank Porter booking site.

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