More UAE residents are opting for monthly rentals. Here's why

The demand for short-term monthly rental units in the UAE is surging as more residents prefer flexible housing options amid geopolitical uncertainty. As the war in the region drove a steep decline in tourism, the availability of short-term rental properties increased, according to industry experts. Alec Smith, head of sales and leasing at Savills Middle East, explained that the regional conflict led to a sharp drop in both leisure and business travel, prompting many short-term operators to see bookings cancelled or postponed.

However, the market quickly adapted to the changing dynamics. Instead of being driven by tourists, demand shifted towards Dubai residents and new arrivals who were considering buying a property or signing an annual tenancy contract. Property owners and operators began repositioning their units to cater to longer monthly stays instead of short-term visits.

As a result, many properties, previously offered to visitors for short stays, are now occupied by UAE residents seeking monthly accommodation with lower commitment and greater flexibility. First Class Property Management, a company managing over 600 homes in Dubai, Abu Dhabi, and Ras Al Khaimah, reported that more than 90% of its units are currently rented out on a monthly basis.

The average stay has increased from 11 days to 21 days, reflecting the different profile of guests now staying with the company. Monthly rents for studio apartments range from Dh4,000 to Dh8,000, one-bedroom apartments from Dh5,000 to Dh12,000, and two-bedroom apartments from Dh8,000 to Dh20,000, depending on factors such as location, building quality, property age, furnishings, and amenities.

Arooba Noor, a Dubai-based businesswoman who recently relocated from Riyadh, stays in a two-bedroom apartment in Downtown Dubai for Dh16,000 per month. She continues with the arrangement mainly due to the flexibility it offers, allowing her to assess her future needs and avoid being tied into a long-term contract. The Dubai government has also introduced the Flexi Rent scheme to help tenants pay rent in monthly instalments, further easing their financial burden amid the uncertain times.