Yes, foreigners can invest in short-term rental properties in Dubai. In fact, Dubai's real estate market is highly attractive to international investors due to its tax-free status, excellent rental yields, and flexible property laws. Foreign investors can purchase properties in designated freehold areas, where they have full ownership rights.

Key Benefits for Foreign Investors:

• High Rental Yields: Dubai’s short-term rental market, particularly for vacation homes, offers rental yields of 6-8% on average, making it a lucrative investment option.
  
  

• No Income Tax: Dubai does not impose income tax, meaning rental income from short-term properties is tax-free​
  
  

• Golden Visa Eligibility: Investors who purchase properties worth more than AED 2 million are eligible for the UAE Golden Visa, offering long-term residency benefits​

By following the local regulations, foreign investors can easily participate in Dubai's booming short-term rental market.