Renovation for Airbnb and Holiday Homes in Dubai

Why renovation for Airbnb in Dubai is not "just another sofa and new tiles"

Short-term rental in Dubai — Airbnb, Booking, local operators — has long moved from "experiment" to a separate class of real estate.

According to market analytics, the average revenue of a typical short-term property in Dubai can reach around 150,000 AED per year with an average occupancy of about 70% and an average daily rate of about 600 AED.

At the same time, the difference in yield compared to long-term rental is often estimated at several percentage points of ROI — but with a noticeably more complex operational part.

Owners have to balance between:

• legal requirements (holiday home license, DET/DTCM, Tourism Dirham),

• expectations of guests accustomed to hotel service,

• operation and wear of the interior,

• real economics: how much it costs to prepare the property and whether it will pay off.

Renovation for Airbnb and holiday homes in Dubai is no longer "make it beautiful for photos", but design a product that will withstand intensive use and work for reviews and profitability.

Legal context: what to consider before starting renovation

Before investing in renovation for Airbnb, it's important to understand the framework:

• Short-term rental in Dubai is legal if the property is registered as a holiday home with Dubai Department of Economy and Tourism (DET, formerly DTCM).

• A holiday home license/permit and property classification are required; under current rules, most cases allow rental of the entire property only, not individual rooms.

• The owner or operator must:

• comply with safety requirements (fire safety, emergency exits, instructions),

• collect and remit Tourism Dirham per night and bedroom to DET,

• maintain records of check-ins and revenue.

Some sources indicate requirements for minimum booking periods (e.g., at least 7 nights for some holiday homes), as well as additional conditions for property types that can be used as short-term.

Therefore, the first step before renovation is not choosing tiles, but checking:

• whether you can legally rent this apartment/villa as a holiday home at all,

• what restrictions apply to property type and community,

• how the chain will look: owner → operator → platforms (Airbnb, Booking, etc.).

How renovation for holiday homes differs from "regular" renovation

The main difference is intensity of use and frequent guest turnover.

A short-term property has different loads:

• constant use of kitchen and appliances,

• frequent moving of items, suitcases, impacts on walls and doors,

• high wear of textiles, soft furniture and plumbing,

• constant cleaning after each checkout.

Therefore, renovation for holiday homes is built around three axes:

1. Durability and maintainability

1. Functionality for different guest audiences

1. Visual perception in photos and in reality

Axis 1. Durability and maintainability

Floors

• For apartments and villas for short-term, it's better to choose:

• porcelain tile or quality LVT (vinyl) with high wear resistance,

• materials resistant to moisture and light chemical agents.

• Too easily stained natural stone and soft parquet require expensive maintenance and quickly lose appearance under high load.

Walls and paint

• Neutral but practical shades (off-white, light gray, warm beige) with washable paint.

• It's advisable to provide:

• wall protection in high-traffic areas (e.g., panels or more durable finishes),

• replaceable decorative elements that can be easily updated without major renovation.

Furniture and hardware

• No "disposable" solutions: better simple but durable furniture than decorative but fragile items.

• Hardware (hinges, handles, guides) must withstand repeated use.

• Built-in solutions (wardrobes, storage) are preferable to chaotic cabinets — less visual noise and higher durability.

Plumbing and engineering

• Reliable faucets and installations are not a luxury, but a way to avoid spending money on emergency calls.

• Good waterproofing of bathrooms and showers is mandatory: leaks in apartments easily turn into complaints from neighbors and management companies.

Axis 2. Functionality for guests and operator

Kitchen: "for photos" and for real operation

Guests of holiday homes in Dubai often:

• cook at home part of the time,

• use the kitchen for storage and reheating food,

• actively use appliances (kettle, coffee machine, microwave, sometimes oven).

Therefore:

• need a clear, logical kitchen with:

• sufficient storage,

• work surface,

• easily washable fronts.

• appliances should be:

• not the cheapest segment,

• with clear controls,

• with service in Dubai.

At the same time, it's important not to overload the interior with unnecessary items that complicate cleaning.

Storage and order

Guests need:

• space for suitcases,

• normal wardrobes,

• logical spaces for storing items (shelves, drawers, hangers).

The operator needs:

• lockable technical cabinets for household supplies, linens, instructions,

• convenient places for cleaning equipment.

CYFR in such projects thinks about storage from two sides:

Light and control

• Convenient lighting scenarios:

• bright general light,

• local light by the bed and in work/rest areas,

• accent light creating atmosphere.

• Simple control:

• minimal number of wall switches,

• clear zones (living room, kitchen, corridor, bedroom),

• if possible — smart home integration, but without overloading interfaces.

Axis 3. Visual and feel: how renovation affects bookings and reviews

What sells in photos

A user on Airbnb or Booking first sees photos, and only then reads the description.

Renovation solutions that work well visually:

• cohesive palette, without random mix of colors and styles,

• several bright but not aggressive accents (textiles, paintings, decor),

• quality light that gives volume and depth to the frame.

It's important that the interior:

• is easy to photograph at different times of day,

• doesn't look cheap under normal lighting (without harsh HDR and filters).

What affects reviews

On site, the guest evaluates not the palette, but:

• quality of mattresses and pillows,

• shower operation and water temperature,

• noise level (soundproofing, doors, windows),

• air conditioning operation.

Therefore, renovation for holiday homes should include:

• proper soundproofing solutions, at least pointwise: doors, inter-apartment partitions, seals;

• quality plumbing and engineering;

• thoughtful sleeping area: bed, mattress, light, outlets, shelf/table.

Economics: how renovation affects holiday home profitability

The short-term market in Dubai looks attractive:

• major reports show steady demand and high occupancy levels;

• in popular areas (Dubai Marina, Downtown, Palm, Business Bay) well-prepared properties often achieve yields of 5.5–7.5% and higher, and in top cases — even more, depending on management and pricing strategy.

But the real question for owners:

Which renovation will pay off, and which will turn into "unnecessary decor"?

What renovation really changes in economics

1. Average daily rate (ADR)

An updated, modern property with good photos and reviews can cost tens of percent more than a tired equivalent in the same building.

1. Occupancy

Guests more often choose properties:

• with modern renovation,

• without complaints about noise, smells, broken elements,

• with clear layout and amenities.

1. Renovation costs and downtime between guests

Durable renovation reduces frequency of unplanned repairs and replacements,

and thoughtful engineering reduces number of emergency calls.

1. Reviews and rating

Neutral but quality interior with thoughtful details → stable 4.7–4.9 stars.

This directly affects bookings and revenue.

Typical mistakes in renovation for Airbnb/holiday homes

Mistake 1. Making renovation "for yourself", but renting to everyone

Too complex, personal solutions:

• bright, controversial colors,

• unusual layouts,

• delicate materials,

often don't handle mass use well and aren't understood by a wide audience.

Mistake 2. Trying to "save on everything"

Minimal investment in renovation gives:

• visually outdated interior,

• rapid wear,

• complaints in reviews,

• increased operational costs.

Need to find balance: not luxury, but durable and clear product.

Mistake 3. Not considering safety requirements and building rules

For holiday homes in Dubai:

• safety requirements are mandatory (smoke detectors, fire extinguishers, instructions),

• registrations and permits through DET/DTCM are mandatory,

• there may be additional restrictions from developer and community.

Renovation done "in isolation" from these rules easily leads to fines and blocks.

Mistake 4. Not thinking about cleaning and service logistics

Cleaning after each guest is:

• moving furniture,

• washing textiles,

• checking equipment operation.

If renovation doesn't provide:

• convenient finishes and materials for quick cleaning,

• systematic storage solutions,

• access to engineering nodes,

operational costs grow, and service quality drops.

How CYFR approaches renovation for Airbnb and holiday homes

CYFR Fitout works in Dubai as a contractor that considers:

• local DET/DTCM and community rules,

• short-term operation specifics,

• property economics, not just aesthetics.

Typical CYFR approach to such projects:

1. Property and strategy diagnostics

• area, house type, target guest audience,

• planned format: self-management or operator,

• ownership horizon and goal: net income, capitalization, resale.

1. Design for short-term scenario

• layout, lighting, storage,

• selection of materials and furniture for intensive use,

• points where smart home integration makes sense (access, light, climate).

1. Accounting for rules and approvals

• checking building and developer requirements,

• assistance with NOC route and interaction with management company.

1. Implementation and handover

• renovation with quality control and online reports,

• final preparation of property for photography and launch,

• on request — connection with subsequent maintenance (AMC) to protect results.

Conclusion: renovation for Airbnb in Dubai is a mini-product, not just interior update

Short-term rental in Dubai offers high profit potential, but also increased requirements for renovations:

• interior must look good in photos and remain alive after dozens of check-ins,

• engineering must withstand intensive use,

• materials and solutions must be friendly to cleaning and service,

• all this must fit within the framework of DET and community licenses and rules.

If you approach renovation as product design —

with clear logic, for whom it is, how it will be used and how it will pay off —

a holiday home in Dubai becomes not just a beautiful picture in a listing, but a sustainable asset.

CYFR helps owners go through this path from idea to finished property,

so your renovation works for rating, revenue and calm operation, not the other way around.