Occupancy Rate

Occupancy rate is the percentage of rentable space or time that is occupied and generating revenue, a key driver of property income.

CalculationFormula
Physical occupancy(Occupied units / Total units) times 100
Economic occupancy(Rent collected / Potential rent) times 100
Time-based (short-term rental)(Occupied nights / Total nights) times 100
Weighted averageAccount for different unit sizes
Dubai Occupancy BenchmarksTypical Range
Prime apartments long-term92% to 98%
Secondary apartments85% to 92%
Suburban villas80% to 90%
Short-term rental high season75% to 85%
Short-term rental low season45% to 60%

Related Terms

Effective Gross Income (EGI)Property ManagementProperty Management AgreementVacancy RateEffective Gross Income (EGI)Rental IncomeAverage Daily Rate (ADR)

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