Yes, you can legally operate short-term rentals in Dubai’s freehold zones. These are areas where foreign investors are allowed to own property with full ownership rights, unlike leasehold zones where ownership is restricted. Once you own property in a freehold zone, you can apply for a short-term rental license, making your property eligible for platforms like Airbnb and Booking.com.

Here’s how to ensure you operate legally and maximize returns:

1. Register with DTCM

   Before renting your property short-term, you must obtain a holiday home license from Dubai’s Department of Tourism and Commerce Marketing (DTCM). This license allows you to legally rent your property for periods shorter than 30 days. Registration involves submitting required documents such as title deeds and your Emirates ID, or passport if you’re a foreign investor​.

   
   

2. Eligible Areas

   Freehold zones like Dubai Marina, Downtown Dubai, Palm Jumeirah, Jumeirah Beach Residence (JBR), and Business Bay are popular for short-term rentals due to their high demand from tourists and business travelers. These areas offer strong rental yields, with some zones reporting returns as high as 12% per annum.

   
   

3. Compliance with Regulations

   You must comply with Dubai’s short-term rental regulations, including guest check-in documentation through the DTCM system, and the collection of Tourism Dirham Fees, which range from AED 10 to AED 15 per night depending on your property’s classification​.

By adhering to these regulations and leveraging the high demand in Dubai’s freehold zones, you can effectively operate a profitable short-term rental business in one of the world’s leading tourism hubs.