Dubai is ranked as one of the most expensive destinations in the Bloomberg World Airbnb Cost Index of more than 100 cities, reports Bloomberg.
At $180, prices in Dubai rose by more than 7 percent year-on-year to be named the third most expensive in the world, behind Miami and Reykjavik.
The Bloomberg index also revealed that hotel room rates in Dubai over the same period fell by 28 percent to $175.
This backed up research by Knight Frank which said prices in Dubai’s hotel market are being hit by more than 4,200 active short-term lets available in the city on Airbnb.com.
The research, published late last year, said that while hotel operators had previously been dismissive of competition in the form of short-term letting websites, many were now recognising the ‘Airbnb effect’ and in some markets had lobbied aggressively against it.
In April last year, Dubai Tourism signed an agreement with Airbnb to allow homeowners to apply for licences without having to commission a third party as a management operator.
Bloomberg compiled the data for its latest index based on the average daily cost of lodging in private dwellings, regardless of accommodation type, for two guests.
Elsewhere in the Gulf region, Riyadh was ranked 26th ($109), down 25.3 percent on an annual basis, while Kuwait ($107) was placed 28th and Doha ($92) was ranked 39th.