Why Studio Apartment is a Smart Investment in Dubai?

Dubai, a city with a luxurious way of life and a rapidly developing real estate market has numerous attractive investment opportunities, and data shows that among all the choices available, apartments especially studio apartments, have better rental yields and ROI compared to villas or bigger apartments. In this article, we will discuss why investing in studio apartments becomes a profitable investment for those looking for intelligent investment options in Dubai.

Affordable and Low Entry Cost

Most first-time dwellers looking for affordable houses in Dubai usually consider studio apartments in Dubai. That’s because they are cheaper than bigger apartments or villas. Starting from AED 300,000 (about $82,000) investors can become the proud owners of a home in Dubai. This low initial investment virtually puts studio apartments within the reach of a first-time investor or a buyer with a limited budget.

Rental Income and High Yields

Buyers of studio apartments are mainly youths, professionals, students, and tourists. This demand translates to attractive rental yields, say, 7-10% per annum. According to the report, Dubai rental yields are considerably high if we compare the rental income of global cities. Hence studio apartments are a perfect choice for investors who want to tap into a passive income stream.

Supply-Demand Gap

The population of Dubai is expected to reach 5.2 million by 2030, which will increase the need for housing, primarily entry-level or ‘affordable’ housing. The studio apartments help to meet this need as they are perfect for those people who need only a room, an attached bathroom, and a small kitchen. Since there are few studio apartments available for rent in the best locations, one is almost guaranteed to find someone interested in buying or renting these apartments.

Great Amenities and Prime Locations

A while ago, studio apartments were viewed as small uncomfortable spaces, however today they possess various comforts like a rooftop swimming pool, gym, and round-the-clock concierge. These apartments are part of luxury communities strategically placed close to main landmarks, main roads, and business centers. These features add to the attractiveness of studio apartments.

Resale Value and Capital Appreciation

Dubai’s real estate market is well known for consistent capital appreciation, which means that property prices within the area constantly rise. This is true for all types of apartments as well especially studio apartments. As the demand increases, the price is also likely to go up. So, when the investor sells their studio apartment they will get a higher price.

Streamlined Buying Process

Foreigners can legally own properties in Dubai, and buying an apartment in Dubai is an easy process with very little paperwork. The procedures followed by the Dubai Land Department (DLD) are efficient, legally protected, and smooth to make the transaction safe and fast.

Conclusion

Studio apartments are an ideal investment that enables you to earn rental income. This is an ideal investment for first-time buyers which gives better appreciation. So, buying apartments in Dubai can be your chance to own a part of the luxurious lifestyle and get a high ROI as compared to a smaller amount of investment. 

FAQs

Q: If a property costs anywhere from AED 300,000 to AED 350,000, what is the expected annual rental yield range?

A: It would be 7% to 11% annually, depending on the specific location, and the amenities associated with the property.

Q: Are there any flexible payment plans available for buying these properties?

A: Most developers provide very flexible payment plans. Which can be in terms of low-down payments or installment-based payments during the construction period.