ZāZEN Properties, a leading sustainable property developer in the UAE, notes the latest industry trends for UAE residents, with a focus on the increasing demand for one-bedroom apartments. With overall prices increasing in Dubai as a result of a surging demand for units being sold and rented-out during the first few months of the year, Dubai residents are looking for the best way to invest their money whether it is to live at the property or as a long-term profitable option.

According to recent data found by Property Finder, the leading property portal in the MENA region, March 2023 real estate transactions recorded around 45% YoY (Year on Year) increase in volume by crossing 12,135 sales transactions compared to 8,344 in March 2022 for a value worth more than AED 34.2 billion and a 53% increase from the same month last year. Approximately one third of tenants (33.3%) in Dubai were looking for one-bedroom units as their preferred option, followed by two-bedroom units at 30.4% and 29.4% for studios. As for villas and townhouses, three-bedroom units were the most searched villas for rent with 42%, followed by four-bedroom villas/townhouses or larger options at 35.5%.^[1]

Keeping up with the trend from the past few months, the off-plan transactions in March 2023 have also supported the uptrend of Dubai’s real estate market with the volume of off-plan properties increasing by 95% YoY and reaching more than 6,400 transactions compared to 3,287 transactions in March 2022. This accounts to 52.8% of the total sales transactions and 36.8% of the total transactions value, highlighting the importance of the off-plan market and its strong impact on Dubai’s real estate sector. This also lends to the growing trend of investors looking to purchase these units at the best possible price and a payment plan available through the off-plan market.

Due to the overall increase in costs, including mortgage rates, rental rates and even the higher cost of living, investing in one or two bedroom units versus larger apartments or townhouses has become preferable. For investors the cost of entry is lower while the rental income outlook is strong, and for tenants, staying in a one-bedroom apartment, in a community centric development, has multiple advantages, including gym facilities, swimming pool, 24×7 security and maintenance to name a few. Through its latest project, ZaZEN Gardens in Al Furjan, which is over 25% complete, ZāZEN Properties offers a diverse variety of units for investors and end users alike. Each unit comes with white goods included, high quality fixtures and fittings, world class amenities and low service charges. The development is also a 7-minute walk away from The Gardens metro station, making it the perfect investment opportunity for those looking to earn rental income from a booming Dubai market. Some of the more popular areas around the city that offer premium one bedroom apartments include Jumeirah Village, Al Furjan, and Dubai Silicon Oasis.^[2]

Madhav Dhar, co-founder, and COO of ZāZEN Properties commented on the current purchasing trend: “Overall demand for properties has continued to increase in Dubai, with the off-plan segment playing a key role, offering payment plans that support investors and ease the burden on end users. Micro markets such as Al Furjan are especially seeing a boom, with great connectivity and robust infrastructure. Our projects aim to provide unparalleled quality and amenities within the mid-market segment, allowing both types of buyers to benefit, and more importantly enjoy their investment within our projects. Our ZāZEN One project speaks for itself, outpacing rental income by over 20% versus the rest of the area. As a brand we will continue this trend and always aim to deliver the best quality in the market, on time, while adding value for our investors and owners.”

In line with this growing demand, ZāZEN Gardens has seen a surge in popularity among buyers, investors, and renters alike with the project selling over 85% of its units in the off-plan market.