March Update #2: What to Expect in Ramadan

February saw a rental surge in Dubai due to pre-Ramadan travel, March experienced a dip owing to traveller misconceptions, but April is poised for a rebound as visitors return after Eid celebrations.

February was a standout month for short-term rentals in Dubai, with a significant surge in guest arrivals, largely driven by the unique travel patterns associated with Ramadan. Many guests chose to travel in February and April, as they prefer to travel before or after Ramadan. February witnessed a remarkable increase in rentals, with daily rates soaring up to two-three times higher than in January.

According to AirDNA the short-term rental market has experienced a 24.27% increase in competition from February 2024 to February 2025. However, we observed a 7% decrease in active listings from January 2025 to February 2025. Reduction in stock = less competition = better rates!

For March, some travelers remain unaware of the lifted Ramadan regulations which tends to deter them from booking trips during the Ramadan period which is Saturday, March 1, 2025, and conclude on Sunday, March 30, 2025.

However, while we expect to see rental rates dip in March, the momentum is regained in April as visitors flock back to Dubai after Eid Al-Fitr.

The short-term rental market in Dubai is a great example of how cyclical trends shape real estate opportunities. February saw impressive returns, with fewer listings creating less competition and driving up daily rates. While March might bring a slower pace due to misunderstandings around Ramadan, April is expected to bounce back strong as visitors return after Eid. For property owners, short-term rentals remain the smartest investment choice, offering flexibility and consistent demand in Dubai’s dynamic market.