Wednesday 22 January 2020

Dubai co-living projects 'see good buyer demand'

DUBAI, July 10, 2019

The co-living projects, a relatively new concept in the Dubai's real estate market, are seeing good buyer demand, according to Property Finder, a leading digital real estate platform in the region.

Responding to the crowded market, developers in Dubai had launched co-living projects to cater to young professionals and millennials.

Emaar projects Collective, Collective 2.0 and Socio at Dubai Hills Estate (in Mohammed Bin Rashid City) account for most sales in the co-living segment.

UNA, developed by Nshama at Town Square, is also a co-living and co-working project featuring 192 studios and 764 one-bedroom apartments. KOA’s Canvas project off Mohammad Bin Zayed Road is also targeted at millennials.

This new affordable asset class in real estate presents an opportunity for investors and aspiring homeowners, stated the Research & Data Team at Property Finder.

“We have started and will continue to see this trend grow here. Not only is it affordable, but it’s also popular with millenials as they want to be part of a community, yet have their own personal space,” remarked Lynnette Abad, the director of Research & Data, Property Finder.

“We have also seen some creative schemes with Emaar and DMCC offering a trade licence and residency with a unit within a co-living project. This is an excellent incentive for those with small, home-based businesses or freelancers,” she added.

In terms of sales price, Nshama’s UNA is priced most competitively among co-living projects, with a studio costing around Dh450,000 ($12,250) to buy.

For a one-bedroom apartment, the price is most competitive at UNA again (Dh558,000), followed by Socio at Dh673,000 and Collective at around Dh700,000. A one-bedroom in KOA’s Canvas is more expensive at Dh982,000. The two-bedroom apartments in all these co-living projects are priced at around Dh1 million, with Canvas bearing a higher price tag of Dh2.75 million.

Co-living and co-working spaces are rising in popularity because they foster a sense of community and offer flexibility. They encourage residents to live, work, play and socialise in the same community.

However, this should not be confused with sharing rooms, a practice that is not legal in the UAE, said the property experts.

While residents live in private apartments within a co-living project, they come together in shared vibrant common spaces to socialise and interact.

Co-living projects are ideal for small business owners and entrepreneurs who can work in the common areas and meet with like-minded people, thereby promoting an entrepreneurial vibe.

Although all co-living projects in Dubai are currently under construction, these units, once ready, are likely to be cheaper to rent than a regular apartment. This is the trend in bigger cities where co-living spaces offer a significant discount compared to regular apartments, they added.    

In terms of registered transactions, Emaar’s Collective has seen 372 deals in total since launch, Socio is at 200, Collective 2.0 is at 135, KOA’s Canvas is at 7 and Nshama’s UNA is at 183, said the report by Property Finder.

In total, Dubai has seen 902 registered transactions (both off-plan and secondary) for co-living spaces to date.

Since all the co-living projects are under construction, the focus is on off-plan sales. In 2019, Collective 2.0 has seen 123 off-plan transactions, Emaar has sold 221 off-plan homes in Collective, 193 homes in Socio and Nshama has sold 9 such homes in UNA this year, it added.-TradeArabia News Service


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