Co-living projects in Dubai see good buyer uptake, says Property Finder

Highlights include:

• It’s popular with millennials as they want to be part of a community, yet have their own personal space
• Emaar projects account for most sales in the UAE co-living segment 
• Nshama’s UNA is priced most competitively among co-living projects   

Dubai: Co-living projects, a relatively new concept in the Dubai real estate market, are seeing good buyer demand, according to transactional data, says 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 millenials as they want to be part of a community, yet have their own personal space,” says Lynnette 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 freelancers,” adds Abad.

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. 

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.

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.

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.    

Transactional volume
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.

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.

Collective and Socio topped Q1 2019 in terms of off-plan sales volume.

About Property Finder – www.propertyfinder.ae 

Property Finder is the leading digital real estate platform in the Middle East and North Africa region that facilitates the house hunting journey for both buyers and renters.

Founded in 2007, the website has evolved over the years as the go-to platform for developers, real estate brokerages and house hunters to make informed decisions on all things real estate.

A UAE-born startup, Property Finder has branched out of the country’s shores and operates in a total of seven markets, including Qatar, Bahrain, Saudi Arabia, Lebanon, Egypt and Morocco, and has a significant stake in the second largest property portal in Turkey, which has over 6 million monthly visitors and more than 18,000 real estate agents. 

US private equity firm General Atlantic led Property Finder’s latest round of investment of a total of $120 million in 2018. This is being used to hire further exceptional talent and investing in its technology and product capabilities.

The property portal employs over 450 employees globally, of which 204 people work out of its Dubai office, and generates over six million monthly visits as a Group.

In April 2019, Property Finder announced acquisition of JRD Group, following an increased investment in Turkish portal Zingat.

In 2014, Property Finder acquired eSimsar.com, the top property portal in Saudi Arabia, while in 2013, the Group bought out realestate.com.lb, the number 1 property portal in Lebanon, and lastly, the acquisition of Selektimmo, a Moroccan portal, to pad out sarouty.ma, Property Finder’s Moroccan offering, in 2016.

For media enquiries, please contact Anna Lucas Southgate
anna@propertyfinder.ae 
+971 55 115 9971

© Press Release 2019