Dubai continues to strengthen its position as a luxury destination, and this is also reflected in hotel prices. In the first half of 2025, the average daily rate for a hotel stay in Dubai rose to 745 AED, which is approximately €188. This represents an increase of 5.5% compared to last year.
High Occupancy and Millions of Visitors Continue to Drive Prices
The figures show that demand for hotels in Dubai remains consistently high. With an occupancy rate of 81%, the city is among the world’s most visited destinations. In the first six months of 2025 alone, Dubai welcomed 10 million international visitors.
To continue meeting this demand, an additional 5,000 new hotel rooms are set to open this year. Notably, a significant 84% of these new hotels are targeting the luxury segment. Rather than competing on price, Dubai is therefore fully focusing on quality and premium experiences.
Other Emirates are also showing price increases. In Abu Dhabi, prices rose even more sharply: hotels in the city increased by 28% and resorts by 21%. Even in quieter areas such as Ras Al Khaimah and Fujairah, there were price increases of 6 to 7%.
This trend confirms that the United Arab Emirates is increasingly positioning itself as a high-end tourist destination. Whether these price levels are permanent will depend on how the market develops, but for now, this appears to be becoming the new normal.
Edward Clarke is a seasoned property expert with extensive experience in international real estate investment, with a particular focus on Dubai’s fast-growing property market. Drawing on both personal investment experience and years of client advisory work, he helps investors make informed, realistic decisions when purchasing apartments, villas or off-plan developments in Dubai. With a pragmatic mindset, a sharp focus on returns and a strong commitment to transparency, Edward is a trusted point of contact for anyone considering a property investment in Dubai.
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