The report by Knight Frank showed Dubai has 10,766 active listings from a total of 20,395 properties registered on the platform.

The city's holiday home market accounts for 2 per cent of Dubai's total households - the highest proportion of all other key global hub cities. 

Of those listings, 61 per cent were homes or apartments, 31 per cent private rooms, and 8 per cent shared rooms. 

The report noted the vast majority of holiday home supply was located in Dubai Marina, the Palm Jumeirah, Jumeirah Beach Residence, DIFC, and Downtown Dubai.

A major appeal of short term rentals as opposed to hotels in Dubai is amenities such as swimming pools and gyms in residential buildings. 

“As is now generally accepted, holiday homes have had a discernible impact on the hospitality market; however these effects are not felt universally within Dubai," Ali Manzoor, Partner, Hospitality and Leisure, said.

"In general, hotels outperform the holiday homes market with the exception being summer months during which they are either on par or holiday homes outperform."

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