One-bedroom apartments are the most popular properties with buyers in the Dubai market, accounting for 47 percent of off-plan sales and 43 percent in the ready-to-move segment in 2023, an industry study revealed.
Two-bedroom apartments and studios shared the second most popular properties segment, with 2-bedroom houses being preferred for own use and studios for investment purposes by buyers, the study by Colife Invest, a global real estate consultancy and short-term rental services, showed.
Two-bedroom apartments accounted for 28 percent of total transactions in the ready-to-move category and 25 percent in the off-plan transactions, while studios’ sales stood at 18 percent of off-plan transactions and 15 percent of transactions in the ready category till November end of this year.
“According to our data, 22 percent of investors prefer studios in Dubai, as they are easier to rent out compared to two-bedroom units,” Ilnara Muzafyarova, CEO of Colife, told Arabian Business.
Muzafyarova said according to their statistics, on average a studio in Dubai could be purchased for $183,000, and a 1-bedroom for $332,700.
“Two-bedroom units constitute 10 percent of all purchases with us, while 3+ bedroom units make 4 percent,” she said.
Top picks: Dubai’s real estate hotspots
As per the Colife study, Jumeirah Village Circle (JVC), Dubai Marina, Business Bay, Jumeirah Lake Towers (JLT), Dubai Creek, and Dubai Hills are the most sought-after areas by buyers to purchase properties.
These areas are equally popular for both primary and secondary residential real estate sales.
“According to our data, the top areas for purchasing income-generating real estate are Dubai Marina and JLT. They are highly popular among buyers because of their established infrastructure, finished construction and metro accessibility,” Muzafyarova said.
She said Dubai Marina is more expensive because it stands out as an area with unparalleled infrastructure, abundant public transportation, numerous restaurants, amusements, and proximity to the sea.
JLT, on the other hand, is loved for its infrastructure, free zone DMCC – and accordingly lots of offices – expansive green parks, direct access to the lakes from each building, and the convenience of easily crossing the road to reach the most attractive Dubai Marina. Apartments in JLT are also more budget-friendly.
“For instance, with $200,272 (AED1 million), one can purchase a studio in Dubai Marina or a one-bedroom unit in JLT, Olga Kalyuzhnaya, an analyst and broker at Colife Invest, said.
As for prices in other sought-after areas, one-bedroom apartment averages $200,272 in JVC, while those in Business Bay typically sell for $299,800, the study said.
In Dubai Creek, 1-bedroom apartments typically sell for $381,500, and in Dubai Hills, such units go for an average of $312,800.
Colife Invest, however, said its catalog prices are much lower as their experts actively track special offers with reduced prices to secure the most advantageous deals for their customers.
“For instance, in Business Bay, 1-bedroom apartments typically sell for $299,800, but with Colife Invest, you can invest in property in this area starting from $231,600,” Muzafyarova said.
“We take location, tower selection, and unit choice seriously,” she said.
Emirate’s booming real estate
The Colife study said prices for apartments in the emirate are not just rising monthly but daily.
“The city is flourishing, and the real estate market is also rapidly evolving in line with it, witnessing a surge in transactions and escalating prices,” it said.
Muzafyarova said Dubai’s favorable investment climate, transaction transparency, security, stability, and prospects attract investors from around the world.
“Though the peak of growth occurred in 2021-2022, there is a high probability that the positive trend will persist, albeit at a slightly slower pace,” she said.
While a section of industry analysts fear a real estate bubble that may burst, the UBS Global Real Estate Bubble Index 2023, a widely recognized international indicator, ranked Dubai with one of the lowest bubble indices globally.
According to the latest UBS Index, Dubai, with a very low index of 0.14, fared way ahead of Hong Kong (1.24) and London (0.98).
“Considering the sustained growth, it is advisable to invest in property now. This not only allows for passive income through rentals but also offers significant potential gains from future price increases upon resale in a few years,” Muzafyarova said.
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