Silkhaus, one of Dubai's better-known holiday-home operators, will shut down at the end of November 2026 after five years in the Gulf short-term rental market. The company, which had raised more than $10 million in equity and debt, blamed sustained regional conflict — linked to the US-Iran war — and its knock-on effect on travel across the GCC.
The numbers behind the closure are stark. Dubai welcomed 6.97 million international visitors in the first eight months of 2026, a 44% drop on the previous year. UAE hotel occupancy slid to 67.6% in September from 79.9% twelve months earlier. According to AirDNA, forward bookings for Dubai short-term rentals are down 37.5% year over year for November, with December and January tracking roughly a quarter below last year.
Air capacity is a big part of the problem. A string of major foreign carriers — KLM, Singapore Airlines, Wizz Air, Cathay Pacific, United, Air Canada, Finnair, Luxair and Virgin Atlantic — have suspended Dubai routes into 2027, leaving inbound seat capacity thin well into next year.
The collapse also strands people on both sides of the platform. Property owners say an October 12 email offered a transfer to a company called First Class Property Management, though neither firm responded to press enquiries. Guests holding Silkhaus bookings beyond November, and owners who listed their apartments on the service, are left without clear answers about refunds or handovers. A planned expansion into Saudi Arabia, backed by a seven-figure funding round in 2025, appears dead in the water — Riyadh has quietly vanished from the company's website.
For travellers, the practical takeaway is to be careful with third-party booking platforms in the region right now. If you've booked a Dubai apartment through Silkhaus, contact the host or the company directly and check whether your payment is protected by a credit card chargeback or booking-platform guarantee. If you're eyeing a Dubai trip this winter, expect fewer direct flight options from Europe, North America and Asia, and consider routing through carriers still flying — Emirates continues to operate its hub, and Gulf carriers' own networks remain largely intact.
There's a potential silver lining for anyone still willing to go: with short-term rental demand down by more than a third and hotel occupancy sagging, rates for apartments and rooms in Dubai are likely to be soft through the winter season. Travellers who can find a workable routing may find the city noticeably cheaper and quieter than in recent years — though the obvious caveat is that the situation remains volatile and worth monitoring before committing to non-refundable bookings.
