ZāZEN Properties, a leading sustainable property developer in the UAE, has observed an increased interest in apartments with an emphasis on one-bedroom apartment units in Dubai from both renters and owners alike. Rental rates across all major asset classes grew in the first quarter of 2023 and data shows that around 60% of investors who want to own property are pinpointing apartments; a growth of nearly 3% when compared to the same period one year ago.

With the World Health Organization (WHO) no longer classifying COVID as a global emergency, a pre-pandemic trend has re-emerged; 80% of investors are returning their attention to apartments with British, Russian, and Indian buyers leading the charge.

After 27,000 apartments were completed in 2022 and 7,600 were handed over  in Q1 of 2023, Dubai’s real estate market is forecasted to see an additional 27,400 units constructed throughout the remainder of the year. With savvy developers increasingly building spacious projects to cater to the market’s post-pandemic needs, one-bedroom apartments are viable and affordable options for tenants and owners.

The most recent data shows that such units are being rented out from budget-friendly prices as low as AED 30,000 all the way up to AED 200,000 per month, reflecting a year-over-year (YoY) growth of 19% from 2022. Similarly, apartments are being purchased from as low as AED 400,000 to as high as AED 4.6 million, representing a YoY growth of 17% from last year.

Increased demand for apartments is expected to hold steady as overseas turmoil is seeing investors safeguard their assets in the UAE. The country’s Golden Visa program is also attracting more residents as a strong return on investment and overall performance in the UAE’s real estate market is evident.

Madhav Dhar, the co-founder and COO of ZāZEN Properties, stated: “Growth is being spurred in Dubai’s real estate sector as international investors are both investing in the UAE and migrating to the country. Favourable government policies and a robust economy are incentivizing factors that are resulting in this progress, paired with a desire for security in today’s climate that is seeing renters increasingly becoming buyers. One-bedroom apartments are among the most commonly sought-after units due to their affordability. Developers who accommodate more spacious yet cost-friendly and Sustainable projects, to meet market demand stand to benefit greatly. With expats continuing to make their way into the country and many young couples and singles looking to become owners, the UAE’s real estate sector is flourishing and a promising trajectory lies ahead.”

ZāZEN Properties’ latest project, ZāZEN Gardens in Al Furjan, 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. The leading sustainable property developer’s second project provides modern, spacious units that cater to the country’s evolving market and align with key initiatives such as UAE Net Zero 2050 and the Dubai 2040 Urban Master Plan. The handover of ZāZEN Gardens is scheduled for April 2024 and once fully operational the project will reduce approximately 470 metric tonnes of carbon emissions annually.