Co-living spaces in Dubai see rising demand and rents

Dubai’s housing market is undergoing an interesting trend: the rise of co-living rentals, particularly among newcomers to the city in their twenties and early thirties. This demographic, often navigating the beginnings of their careers or new ventures, appears to be gravitating towards a more communal style of living.

Market observations reveal a growth in the availability of co-living accommodation, with Danielle Hall of Co-Living Legends noting an impressive 3,500 rooms listed as available. Hall’s venture, among a handful in Dubai, caters to this rise in demand by partnering with property owners to furnish and manage such properties.

The concept of co-living, although just emerging in Dubai when compared to its global counterparts like London or Berlin, is fast gaining traction. Its appeal lies in offering a more sociable and flexible living arrangement than traditional rentals. Currently, the sector is well suited for substantial expansion, with an anticipated addition of up to 5,000 rooms should demand continue.

Co-living spaces in Dubai are affordable and offer an alternative lifestyle choice. With rental rates for these spaces starting at AED 4,000 monthly and premium options reaching beyond AED 6,000, it’s clear that tenants are seeking more than just savings.

Hamza Abu Zannad of Axiom Prime Development notes the investment potential in co-living setups, especially for properties optimised for shared living, which can command premium rents and yield high returns.

This trend is also reshaping landlord perspectives, offering them a lucrative alternative to traditional rental models. The concept, distinct from overcrowded accommodations, emphasises individual privacy and quality living standards, such as en-suite bathrooms and individual AC controls.

The primary clientele for co-living spaces spans various professions, from legal and marketing experts to digital entrepreneurs. There’s also a growing interest from businesses seeking comfortable, short-term housing solutions for their staff, opening new avenues for landlords in the corporate leasing segment.

As Dubai’s real estate market continues to change, co-living stands out as a new, flexible, lifestyle-centric option that caters to the city’s diverse and expanding resident demographic, presenting landlords with more options for profitable leasing.

Original article reference: Gulf News.


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