ZāZEN Properties, the UAE's leading sustainable property developer, noted the latest industry trend for UAE residents, focusing on the increasing demand for one-bedroom flats.
With overall prices in Dubai rising due to a surge in demand for units for sale and rent in the first few months of the year, Dubai residents are looking for the best way to invest their money, either to live on the property or as a long-term profitable option.
According to recent data found by Property Finder, the leading real estate portal in the MENA region, real estate transactions in March 2023 recorded a YoY (year-on-year) growth of around 45 per cent across 12,135 sales transactions, compared to 8,344 in March 2022, valued at over Dh34.2 billion, a 53 per cent increase over the same month last year. In Dubai, around a third of tenants (33.3 per cent) are looking for one-bedroom units as their first choice, followed by two-bedroom units at 30.4 per cent and studios at 29.4 per cent.
As for villas and townhouses, three-bedroom units were the most searched for villa rentals at 42%, followed by four-bedroom villas/townhouses or larger options at 35.5%[1] .
In line with the trend over the past few months, off-plan transactions in March 2023 also supported the upward trend in the Dubai property market, with off-plan property transactions increasing by 95% year-on-year to over 6,400 transactions, compared to 3,287 transactions in March 2022.
This represents 52.8% of the total sales transactions and 36.8% of the total transaction value, highlighting the importance of the off-plan market and its strong influence on the Dubai real estate sector. It also illustrates the growing trend of investors looking to purchase these units at the best possible price and through the payment plans available in the off-plan market.
Investing in one or two bedroom units versus larger flats or townhouses has become the preferred option due to the overall increase in costs, including mortgage rates, rents and even the cost of living. For investors, the cost of entry is lower while rental income prospects are strong, and for tenants, living in a one-bedroom flat in a community-centric development offers a variety of advantages, including fitness facilities, swimming pools, 24x7 security and maintenance, and more.
Through its latest project, ZaZEN Gardens in Al Furjan, which is 25% complete, ZāZEN Properties offers a wide variety of units for investors and end users. Each unit includes white goods, high quality fixtures and fittings, world class amenities and low service charges.
The development is also just a seven-minute walk from The Gardens metro station, making it the perfect investment opportunity for those looking to generate rental income from the booming Dubai market.
Some of the more popular areas around the city offering quality one-bedroom flats include Jumeirah Village, Al Furjan and Dubai Silicon Oasis.
Madhav Dhar, co-founder and COO of ZāZEN Real Estate, commented on the current buying trend: "The overall demand for property in Dubai continues to grow, with the off-plan segment playing a key role in providing payment plans that support investors and ease the burden on end users.
Micro-markets like Al Furjan in particular are seeing a boom, with great connectivity and strong infrastructure. Our project aims to provide unparalleled quality and facilities for the mid-market, allowing both types of buyers to benefit and more importantly enjoy their investment in our project.
Our ZāZEN One project speaks for itself, generating over 20% rental income compared to other areas. As a brand, we will continue this trend and remain committed to delivering the best quality on the market, on time, while adding value for our investors and landlords."
In line with this growing demand, ZāZEN Gardens has seen a surge in popularity among buyers, investors and tenants, with the development selling more than 85 per cent of its units in the off-plan market.
