It’s popular with millennials as they want to be part of a community, yet have their own personal space
Co-living projects, a relatively new concept in the Dubai real estate market, are seeing good buyer demand, according to the Research & Data Team at Property Finder.
Responding to the crowded market, developers in Dubai have launched co-living projects to cater to young professionals and millennials.
This new affordable asset class in real estate presents an opportunity for investors and aspiring homeowners.
We have started and will continue to see this trend grow here. Not only is it affordable, but it’s also popular with millennials as they want to be part of a community, yet have their own personal spaceLynnette Abad, Director of Research & Data, Property Finder
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 1-bedroom apartments. KOA’s Canvas project off Mohammad Bin Zayed Road is also targeted at millennials.
The co-living phenomenon should not be confused with sharing rooms, a practice that is not legal in the UAE. 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.
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 freelancersLynnette Abad, Director of Research and Data, Property Finder
How much does it cost to buy
In terms of sales price, Nshama’s UNA is priced most competitively among co-living projects, with a studio costing around AED450,000 to buy. In comparison, a studio at Collective is priced at approximately AED680,000.
For a 1-bedroom apartment, the price is most competitive at UNA again (AED558,000), followed by Socio at AED673,000 and Collective at around AED700,000. A 1-bedroom in KOA’s Canvas is more expensive at AED982,000. The 2-bedroom apartments in all these co-living projects are priced at around AED1 million, with Canvas bearing a higher price tag of AED2.75 million.
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.
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.
In total, Dubai has seen 902 registered transactions (both off-plan and secondary) for co-living spaces to date.