Sevenx Properties in Dubai Real Estate Agency
How to Find Serviced Apartments in Business Bay - Short-Term Rentals
Business Bay has grown into one of Dubai’s most dynamic business and lifestyle hubs. Located next to Downtown Dubai and Dubai Canal, it has become a magnet for expats, professionals, and tourists looking for modern living in the heart of the city.
Among the most in-demand property types here are serviced apartments, especially for short-term rentals. They provide the perfect mix of comfort, convenience, and flexibility for both residents and investors. If you’re looking to rent or invest in a serviced apartment in Business Bay, this blog will help you understand why they are popular, what costs to expect, and how to choose the right one.
Why Serviced Apartments Are in High Demand
Serviced apartments are fully furnished homes that come with hotel-like amenities such as housekeeping, concierge, security, and sometimes even gym and pool access.
For short-term tenants, they offer a home-away-from-home experience with the flexibility of not being tied to long-term contracts. For investors, they offer strong returns because short-term rentals in Business Bay command higher per-night rates compared to traditional yearly leases.
The demand is fueled by:
Expats relocating to Dubai who need temporary housing.
Tourists and business travelers seeking prime central locations.
Professionals working in Downtown and Business Bay.
Benefits of Renting or Investing in Serviced Apartments in Business Bay
Prime Location – Just minutes away from Burj Khalifa, Dubai Mall, and DIFC.
Flexibility – Suitable for tenants who need weekly, monthly, or seasonal stays.
Higher ROI – Short-term rentals generate 20–40% more income than traditional annual leases.
Ready-to-Move-In – Fully furnished and managed, saving time and hassle.
Professional Management – Many serviced apartments are run by hospitality operators, reducing the burden for owners.
Average Costs of Serviced Apartments in Business Bay
The cost of serviced apartments in Business Bay depends on size, view, and services included.
Studios & 1-Bedroom Apartments: AED 6,000 – AED 10,000 per month (short-term)*.
2-Bedroom Apartments: AED 12,000 – AED 18,000 per month*.
Luxury/Premium Units with Canal or Burj Khalifa Views: AED 20,000+ per month*.
For investors, purchase prices start around AED 1 million for smaller units, while larger apartments can range from AED 2.5–4 million.
*Prices may differ based on demand, size and location.
ROI Potential for Investors
Short-term rentals in Business Bay often generate 8–12% net rental yields, compared to 5–7% from long-term leases. The key drivers are:
Tourist demand (Dubai welcomes over 15 million visitors annually).
Business travelers staying for weeks or months.
The central location, which appeals to both leisure and corporate tenants.
Investors should partner with licensed holiday home operators to maximize occupancy and comply with Dubai’s rental laws.
Common Challenges and Solutions
High Competition: Business Bay has many serviced apartments. Solution: focus on units with premium views or unique interiors.
Management Hassles: Running short-term rentals requires cleaning, check-ins, and marketing. Solution: hire a professional holiday home company.
Fluctuating Demand: Seasonal dips occur during summer. Solution: offer discounts during low seasons and target corporate clients.
FAQs
1. Are serviced apartments in Business Bay good for investment?
Yes, they are highly profitable due to strong demand from tourists and business travelers, delivering higher ROI than long-term rentals.
2. Do I need a license to rent short-term in Dubai?
Yes, owners must obtain a DTCM holiday home permit or partner with a licensed operator to manage rentals legally.
3. What is the average rental yield in Business Bay?
Serviced apartments for short-term rentals can yield 8–12% annually, higher than many other communities.
4. Which type of apartment is most in demand?
1-bedroom serviced apartments are the most popular, as they attract both single professionals and couples.
5. Is it better to buy off-plan or ready serviced apartments?
Ready units give immediate rental income, while off-plan units offer lower entry prices and capital appreciation by handover.
Frequently Asked Questions
A refundable security deposit of 5% of the annual rent will be expected to be paid on Landlords acceptance of Tenants offer to lease. This security deposit which is held by the Landlord and returned at the end of the term dependant on the condition of the property. You will need to pay your rent up front for the period of lease in the way of post-dated cheques depending on the terms of your agreement. Other costs will include 5% of the annual rent payable to the agency for commission plus 5% VAT. You will also need to budget for the deposits required to be paid for connecting your utilities such as water, electricity, televisions etc. 5% VAT is payable on services provided and will be incurred on utility charges.
A refundable security deposit of 5% of the annual rent will be expected to be paid on Landlords acceptance of Tenants offer to lease. This security deposit which is held by the Landlord and returned at the end of the term dependant on the condition of the property. You will need to pay your rent up front for the period of lease in the way of post-dated cheques depending on the terms of your agreement. Other costs will include 5% of the annual rent payable to the agency for commission plus 5% VAT. You will also need to budget for the deposits required to be paid for connecting your utilities such as water, electricity, televisions etc. 5% VAT is payable on services provided and will be incurred on utility charges.
To rent a property in Dubai, you generally need the following documents:
- A valid Emirates ID or passport for identification
- A residency visa
- A tenancy contract is a legal agreement between the tenant and the landlord outlining the terms and conditions of the rental agreement.
- A security deposit, which is typically equivalent to one month's rent
- Cheques or proof of payment for rent and any other fees associated with the rental agreement
- Ejari
In Dubai, the responsibility for paying service fees for a property is determined by the rental agreement between the tenant and the landlord.
In most cases, the landlord is responsible for paying the service fees. However, in some cases, the rental agreement may state that the tenant is responsible for paying a portion or all of the service fees. This would depend on the specific terms of the rental agreement.
The length of the contract can vary, but it is typically for a minimum of one year. However, landlords and tenants can agree to a longer-term contract if they want.
