Dubai’s real estate market continues to attract local and international investors due to strong rental demand, high yields, and long-term growth potential. One of the most common dilemmas for property investors is choosing between a studio apartment and a 1-bedroom apartment.
Both options offer unique advantages depending on budget, rental strategy, and target tenants. This guide compares studio vs 1-bedroom apartments in Dubai based on price, rental income, demand, and ROI to help you make a wise investment decision.
Quick Comparison Overview
| Feature | Studio Apartment | 1-Bedroom Apartment |
| Purchase Price | Lower | Higher |
| Rental Demand | Very high | High |
| Rental Yield | Higher (%) | Stable |
| Tenant Type | Singles, bachelors | Couples, professionals |
| Maintenance Cost | Low | Moderate |
| Best For | Budget investors | Long-term investors |
About Studio Apartments: Overview
Studio apartments are compact units that combine the living area, bedroom, and kitchenette into one open space. They are extremely popular among young professionals, expats, and short-term renters in Dubai.
Due to their affordability and strong rental demand, studios are often considered an entry point for new real estate investors.
Key Advantages of Studio Apartments
- Lower purchase price
- High rental demand in key areas
- Better rental yield percentage
- Easier to rent out quickly
- Lower maintenance and service charges
Downsides of Studio Apartments
- Limited space for tenants
- Lower capital appreciation compared to 1BR
- Higher tenant turnover
- Less attractive for families
About 1-Bedroom Apartments: Overview
1-bedroom apartments offer a separate bedroom, living space, kitchen, and bathroom, making them more comfortable for long-term living. These units attract working professionals, couples, and corporate tenants.
While the upfront investment is higher, 1-bedroom apartments tend to deliver stable rental income and better resale value.
Key Advantages of 1-Bedroom Apartments
- Wider tenant appeal
- Higher rental income (absolute value)
- Better long-term appreciation
- Lower vacancy risk
- Suitable for long-term tenants
Downsides of 1-Bedroom Apartments
- Higher purchase price
- Higher maintenance and service charges
- Slightly lower rental yield percentage
- Longer selling cycle in some areas
Property Prices & Rentals Comparison
| Category | Studio Apartment | 1-Bedroom Apartment |
| Average Purchase Price | AED 450,000 – 750,000 | AED 750,000 – 1,300,000 |
| Average Annual Rent | AED 40,000 – 65,000 | AED 65,000 – 95,000 |
| Rental Yield | 7% – 9% | 5.5% – 7% |
| Service Charges | Low | Moderate |
Overall, studio apartments offer higher rental yields, making them ideal for investors focused on cash flow. On the other hand, 1-bedroom apartments provide stronger capital growth and stable income over time.
Rental Demand & Tenant Profile
Rental demand varies depending on location, pricing, and lifestyle needs.
Studio Apartments Are Best For:
- Single professionals
- Freelancers and remote workers
- Short-term rental investors
- Budget-conscious tenants
1-Bedroom Apartments Are Best For:
- Couples and married professionals
- Corporate tenants
- Long-term renters
- End-users planning to live in the property
Lifestyle & Living Experience
Studio apartments prioritise affordability and convenience, while 1-bedroom units focus on comfort and privacy. In premium areas like Dubai Marina, Downtown Dubai, JVC, and Business Bay, both unit types perform well but attract different tenant segments.
Investors targeting Airbnb or short-term rentals often prefer studios, while those aiming for stable, long-term leases lean toward 1-bedroom apartments.
Investment Perspective: Which Performs Better?
From an investment standpoint, both options perform well in Dubai, but with different goals:
- Studios deliver higher ROI percentages and faster rental turnover
- 1-bedroom apartments offer better appreciation and resale demand
Your choice should depend on whether you prioritise monthly cash flow or long-term capital growth.
Final Verdict: Best Investment Choice in Dubai?
There is no one-size-fits-all answer. Your investment strategy, risk tolerance, and budget will determine the best investment.
Choose a Studio Apartment if:
- You have a limited budget
- You want higher rental yields
- You prefer quick rentals and liquidity
- You’re targeting young professionals or short stays
Choose a 1-Bedroom Apartment if:
- You want long-term appreciation
- You prefer stable tenants
- You’re investing for resale value
- You target couples and corporate renters
Both studio and 1-bedroom apartments remain strong, profitable investment choices in Dubai’s real estate market when selected in the correct location.
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