A significant number of newly arrived residents in Dubai, particularly those in their 20s or early 30s, are increasingly opting for co-living spaces as their preferred choice of accommodation. Market sources indicate a growing trend towards co-living rentals, with lease rates showing signs of stabilization in response to this heightened demand.

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Danielle Hall, founder of Co-Living Legends, notes the increasing prevalence of co-living listings across Dubai, with approximately 3,500 rooms currently available for rent. While options range from individual room rentals to shared accommodations among friends or colleagues, established co-living companies like Co-Living Legends remain relatively few in number compared to global counterparts in cities like London or Berlin.

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Industry insiders suggest that if current demand levels persist, the co-living sector could see the addition of another 3,000 to 5,000 rooms in the near future, reflecting its growing popularity among residents.

Rentals for co-living spaces in Dubai start at Dh4,000 per month and can exceed Dh6,000 for premium options, signaling a willingness among tenants to prioritize convenience and lifestyle over affordability.

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Hamza Abu Zannad, co-founder at Axiom Prime Development, highlights the burgeoning appeal of co-living among new expats, presenting an opportunity for investors to capitalize on high-yielding premium rentals by optimizing shared living arrangements within apartments.

As rentals continue to rise in Dubai, landlords are exploring alternative leasing models such as co-living to maximize returns. However, misconceptions persist around co-living, with Danielle emphasizing that the model prioritizes single occupancy bedrooms with en-suite facilities and individual AC control.

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Corporate clients, including those from industries such as real estate, legal, marketing, and events planning, are among the primary lessees of co-living spaces. Additionally, landlords are encouraged to consider leasing to corporate clients for short-term stays, with typical leases ranging from six months to a year.

With landlords holding the upper hand in this market, they have the flexibility to cater to various leasing options, including co-living, to meet the diverse needs of residents and optimize rental returns.