Wondering whether to invest in a studio or a 1-bedroom apartment in Dubai? Here’s a clear, data-supported breakdown to help you make the smartest decision in 2025.
Attention: The Big Property Questions in 2025:
The Dubai real estate market is booming yet again. Apartment prices in popular mid-range communities rose above 15% in 2024. Demand for affordable rental apartments has never been stronger.
So this is a pressing question for everyone’s with constraints on their budget:
Should I buy a studio versus a 1BHK apartment? Which one gives better returns, higher rental income, and stronger long-term capital appreciation?
Let’s break it down.
Cost of Buying: Ticket Price Matters:
Both studio and 1BHK apartments are considered “entry-level investments,” but their price differences—and long-term costs—can be major.
| Apartment Type | Avg. Price (AED) | Avg. Sq. Ft. | Service Charges | DLD Fees |
|---|---|---|---|---|
| Studio | 350,000–500,000 (Approx) | 350–500 | AED 12–18/sqft | 4% + AED 5K |
| 1BHK | 500,000–800,000 (Approx) | 650–900 | AED 13–20/sqft | 4% + AED 5K |
If you’re looking for budget-friendly investments, check these blogs:
👉 Top Areas to Buy Studio Apartments in Dubai Under AED 500K
👉 Top Areas to Buy 1BHK Apartments in Dubai Under AED 500K
Rental Yield & Occupancy Rates
Studio ROI (Rental Yield):
- 8–9% in JVC, Arjan, IMPZ
- Very popular with students, bachelors, short-term tourists
- Lower service charges keep profits healthy
1BHK ROI (Rental Yield):
- 6–7% in JVC, Silicon Oasis, Sports City
- Preferred by couples, working professionals, long-term tenants
- Lower vacancy risk during downturns
Winner: Studios win on raw ROI, but 1BHKs offer better tenant stability.
Capital Appreciation Outlook:
Here’s where the long game matters:
| Community | 2023 Avg. Price | 2024 Avg. Price | Appreciation |
|---|---|---|---|
| JVC Studio | AED 390K | AED 435K | +11.5% |
| JVC 1BHK | AED 600K | AED 675K | +12.5% |
| Dubai Silicon Oasis 1BHK | AED 510K | AED 590K | +15.7% |
Insight: 1BHKs slightly outperform studios in appreciation due to stronger demand from end-users.
Tenant Profile & Lifestyle Preferences
Who rents Studios?
Visitors, young singles, digital nomads. Preferring furnished or managed units.
Who rents 1BHK?
Working couples, young expats, and long-term residents of the UAE. Those who prefer their stay semi-furnished or unfurnished.
👉 If targeting Airbnb or short-term leases, studios work best.
👉 If planning for cash flow on a monthly basis with fewer vacancies, 1BHK could be the best choice.
Financing & Mortgage Tips:
Banks have a greater preference for 1BHK apartment financing due to their higher resale potential. Should you decide on a mortgage as an expat:
- LTV (Loan-to-Value) – Upto 80% for first-time buyers.
- Interest Rate – ~3.5% (fixed) or 2.99% (variable).
- Best areas for mortgage & capital gain – Business Bay, JVC, Dubai South.
Smart tip: Pick off-plan 1BHK units with a 5-year post-handover payment plan. This gives you more flexibility.
What Should Be the Best Move?
🔑Studio: Lower cost, higher ROI, good for short-term plans.
🔑1BHK: Better long-term growth, less vacancy risk, and easy financing.
If the budget allows, go for 1BHK in an area that is cropping up like JVC or Dubai South. Both locations are slated to render good returns by way of rental income and appreciation. If you are a novice or are looking at more numbers, two studios in different locations can reduce your risk.
FAQ: 1BHK vs Studio Dubai Investment:
Q: In Dubai, are studios easier to rent out than 1BHKs?
Yes, especially in areas impacted by tourists. But studios also have shorter stays, hence experience more turnover of tenants.
Q: Which is better for Airbnb-studios or 1BHK?
Studios are more economical and function well in regions such as Marina, Downtown, and JLT.
Q: Which type is easier to resell?
There is noticeably higher demand for 1BHKs by both investors and end–users, thus are usually easier to liquidate in a slow market.
Q: Can I buy a studio or 1BHK in Dubai with only AED 400K?
Yes. You’ll have many studio options, as well as a few 1BHK units in areas like JVC, IMPZ, and Dubai South. Check our complete area guides above.