Why Two Bedroom Apartments Have Great ROI For Airbnb In Dubai

Is investing in a 2 bedroom Airbnb apartment in Dubai worth it?

Here’s a fact: these properties are currently generating average returns of 8-12% annually—significantly higher than the 5-7% from traditional long-term rentals.

But is that all you need to know? Maybe not. There’s more to it.

In this blog, we’ll dive into why two bedroom apartments have great potential for short-term rental investments in Dubai.

What Makes 2 Bedroom Airbnb Apartments Profitable In Dubai?

2 bedroom vacation rentals in Dubai are more profitable due to their optimal combination of high occupancy rates, strong daily rates, and efficient operating costs. According to Dubai Tourism data, these properties achieve an average annual ROI of 8-12%.

Photo by Tiger Lily

Let’s look at the profitability of 2 bedroom Airbnb apartments in Dubai:

1. Average Occupancy and Rates:

• Annual occupancy rate: 78%
• Peak season daily rate: AED 800-1,000 (October-March)
• Mid season daily rate: AED 600-800 (April-May, September)
• Low season daily rate: AED 500-700 (June-August)

2. Target Guest Demographics:

• Small families
• Friend groups
• Business travelers & colleagues

These 2-bedroom units for Airbnb maintain high profitability because they balance space utilization with manageable operating costs while meeting the needs of families or groups.

Top Areas For 2 Bedroom Vacation Rental Apartments In Dubai

Photo by Anna Sovi

1. Dubai Marina leads the pack for 2 bedroom Airbnb performance, boasting an impressive 81% occupancy rate  during peak season and daily rates ranging from AED 800-1,200. Its waterfront location and vibrant lifestyle make it particularly attractive to Western tourists and business travelers.

2. JBR (Jumeirah Beach Residence) follows closely with about AED 850-1,100 daily rates. The beachfront access and tourist-friendly atmosphere make it especially popular with families willing to pay premium rates for direct beach access.

3. Business Bay emerges as the corporate favorite, with about AED 750-950 daily rates. Its proximity to Downtown Dubai and DIFC drives consistent business traveler demand, ensuring steady bookings even during tourist low seasons.

4. Downtown Dubai is also a great spot for 2 bedroom Airbnbs in Dubai, boasting an occupancy of 79% in peak season, and AED 900-1,200 daily rates. The Burj Khalifa view commands premium rates, while the Dubai Mall access attracts luxury-seeking tourists.

These areas consistently outperform due to their strategic locations, strong amenities, and high appreciation potential, making them ideal for holiday home investments.

What Is The Average ROI For 2 Bedroom Holiday Homes In Dubai?

The average ROI for 2 bedroom holiday homes in Dubai ranges from 8-12% annually, with premium locations like Dubai Marina and Downtown Dubai achieving returns up to 15%. This calculation is based on a typical property value of AED 1.5M.

Annual Revenue Breakdown:

• Gross Revenue: AED 280,000. Based on average daily rates of AED 800 during peak season and AED 500 during low season, with 78% annual occupancy.
• Operating Expenses: AED 70,000. Including property management (15-20% of revenue), utilities, maintenance, and cleaning services.
• Net Revenue: AED 210,000. Resulting in an average net ROI of 12% for well-managed properties.

However, seasonal performance plays a crucial role in these returns. During peak season (October-March), your property will generate approximately 60% of its annual revenue, thanks to a 40% increase in daily rates and occupancy rates soaring to 85-90%.

The summer months (June-August) require a different strategy – while occupancy drops to 60-65%, focusing on extended stays and corporate bookings helps maintain profitability through strategic pricing and reduced operational costs.

How To Maximize the ROI of Your 2 Bedroom Vacation Rental In Dubai

Your success in Dubai’s holiday home market goes far beyond just picking the right location. Let’s dive into strategies that can boost your short term rental returns in Dubai.

Photo by Kaboompics

1. Use Professional Photography: This is a necessity that directly impacts your bottom line. Properties with professional photos see a higher booking rate and command better rates than those with amateur photography. While the initial investment might seem steep, it typically pays for itself within the first month of bookings.

2. Use Dynamic Pricing: Your pricing strategy needs to be as dynamic as Dubai’s market. During the peak season (October to March), you can confidently set your rates 40% above your base price. The influx of tourists and business travelers during this period means you’ll still maintain high occupancy rates. However, don’t make the mistake of keeping your prices static during the slower summer months. Instead, pivot your marketing toward longer stays and offer strategic discounts for longer bookings.

3. Include Great Amenities: When it comes to amenities, think like your target guest. A reliable work-from-home setup isn’t just nice to have—it’s essential. High-speed WiFi (minimum 100 Mbps) and a dedicated workspace can justify a 15% premium on your nightly rates, especially for corporate bookings. Smart home features like digital locks and automated lighting systems not only command higher rates but also reduce operational headaches.

4. Use Homevy: As Dubai’s leading short term rental management company, we’ve figured out how to make bank with short term rentals. So whether you’ve got a fancy 2-bedroom, 1-bedroom, or even a 3-bedroom apartment, Homevy will get you the best ROI possible.

Outro Thoughts

The numbers don’t lie—2 bedroom apartments are great for Airbnb in Dubai.  With ROIs ranging from 8-12% and a market that’s only getting stronger, these properties offer a rare combination of stable returns and genuine appreciation potential.

What should you do next?

Start by exploring properties in your target areas. Connect with experienced property managers who understand the holiday home market. Review your financing options, and start planning your furnishing strategy.

And if it all feels a little too much, call Homevy. 

Xoxo 🙂