Real estate in Dubai : how to choose between a studio and a 1 bedroom ?

Studios and 1 bedrooms are the most sought after apartment types in Dubai. Indeed, the demand for these apartments is very high, whether for annual or long-term rental. And if you are thinking of making a rental investment in Dubai, you are probably wondering what type of property to choose. Dubai Immo, the leading French real estate agency in Dubai, provides you with all the information you need to succeed in your real estate project in Dubai.

Rental investment in Dubai: why buy a studio or a 1 bedroom apartment?

These are the most sought after types of apartments in Dubai and the most profitable. These are the apartments on which you will be able to achieve the best rental yields, between 7 and 12% depending on the location and the type of rental, short or long term. The city of Dubai is mostly composed of expatriates, more than 90%, and many of them live alone or in couple without children. If you are looking to make a rental investment in Dubai, we strongly recommend that you position yourself on this type of surface, especially since these are also the cheapest properties on the market.

How to choose between a studio and a 1 bedroom apartment?

To begin with, the budget will certainly play a very important role in your choice. In 2022, for a well-placed studio apartment with a good payment plan, options are available from 120,000€. Studios are the most sought after on Airbnb in Dubai. If you prefer to position yourself on a 1 bed, the starting prices are rather located around 160.000€. If the return will generally be 1% higher on studios, the expected capital gain is generally lower on studios. Indeed, in the event of resale, it is probably an investor who will take back your studio, and that removes you the possibility of the purchase "coup de coeur". On a 2 room apartment (1 bed), you will have the option to resell to an investor but also to a first time buyer, which could allow you to realize a nice capital gain. Finally, if ever (and we are very far from it) the rental demand would come to fall, the studios should be the first to be impacted, the tenants turning at that time towards 1 bedroom.