Hosting · Business Bay

Short-Term vs Long-Term Rental in Business Bay

Side-by-side numbers on annual tenancy versus licensed holiday-home hosting in Business Bay.

Price per sqft

AED 2,100 per sqft

1-bed rent

AED 95,000/yr

Gross yield

7–8%

Short-let occupancy

78%

The numbers

A long-term tenancy in Business Bay returns AED 95,000 a year with near-zero effort. The same unit hosted at AED 547 a night and 78% occupancy grosses about AED 155,731, and owners on our managed programme average AED 214,909 — a 38% uplift.

The trade-offs

Short-let carries licensing, cleaning, linen and management costs, plus seasonality. Long-term gives certainty and one cheque cycle. Most Business Bay owners choose short-let for the upside and flexibility to use the home themselves.

Business Bay at a glance

Business Bay is the canal-side business district minutes from Downtown and DIFC. Buying sits at AED 2,100 per sqft — roughly AED 1,638,000 for a standard one-bedroom — while long-term tenants pay about AED 95,000 a year. Hosted as a licensed holiday home, the same unit averages AED 547 a night at 78% occupancy, around AED 155,731 gross. Owners on our managed programme average AED 214,909 — a 38% uplift.

Frequently asked questions

Which earns more in Business Bay?

Short-let usually earns more gross — around AED 155,731 versus AED 95,000 — but has higher running costs.

Can I switch between the two?

Yes. We commonly move units from annual tenancy to holiday-home hosting at the end of a lease.