Dubai Real Estate Market Trends 2024: Shift in Buyer Interest Towards Smaller Apartments

Despite the rapid increase in apartment purchases in Dubai, recent years have shown a growing trend in demand for smaller housing units.

From 2021 to 2024 (first 9 months), the share of studio and 1-bedroom (1BR) apartments in total sales rose from 58% to 65.7%. Meanwhile, the share of 2-bedroom (2BR) units decreased from 29.3% to 27.4%, and the share of 3-bedroom (3BR) units nearly halved.

?At the same time, the median size of all apartment types has decreased. Over the past four years, the average size of studios dropped from 40 to 39 m2, and the size of 1BR units declined from 73 to 71 m2. A more significant reduction was seen in the 2BR segment, down by 8 m2, and in the 3BR segment, which saw a decrease of 10 m2.

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The shift in buyer demand towards smaller housing units is largely driven by the steady rise in the price per square meter of real estate in Dubai, forcing buyers to seek smaller homes that fit within their budgets. In response, developers are adapting quickly, constructing smaller apartments in new projects.

Source: Dubai Land Department