Are studio homes a profitable investment option?

Yes. 

Are you surprised at the simplicity of the answer? 

Don’t be; we’ll explain why in the next few paragraphs. 

Studio apartments are also known as a studio flat. A studio apartment is a self-contained apartment that combines many times but not all the time, the living room, bedroom, and kitchen into a single room.

The simplicity of a studio apartment, coupled with the low rental prices, makes them the bread and butter of students, tourists, and single, working-class people.

Some of the reasons people go for studio apartments—as Dubai real estate agencies have discovered—are:

1. It is easy to clean

2. Does not require much furniture

3. Closer to the urban areas 

4. Affordable 

These factors, top real estate brokers in Dubai have highlighted, are what young people are looking for. Students want a place of their own; a place that gives them their privacy but also doesn’t drill holes in their pockets. Young professionals who are single need a place to sleep at night—as many of them spend more time at their workplace than they do spend at home—and also save up to buy their dream home. Tourists want small temporary accommodation, which is private.  

So, these reasons highlighted, should an investor put his money into this type of property?

An absolute yes!

The reasons for the answer are as follows:

1. They are cheaper to buy: 

Real estate can be quite expensive to buy. If you want to buy one of the new villas for sale in Dubai, you would have to have the right amount of money in your account for the down payment and the mortgage. But for these small, student-friendly apartments, you don’t need all those monies. Studio apartments are cheaper to buy than family homes. You can also check some off plan projects in Dubai.

2. Great for first-time investors: 

For an investor who is coming into the real estate market for the first time, getting a studio apartment is the perfect introductory investment. It’s not as if the investment doesn’t have its downside and risks, but they are minimal, plus you spend less money than if you rented a condo. Furthermore, because most of these apartments are up for rent, you can quickly get renters if the house is in the right location. 

3. The return on investment is okay: 

Don’t be deceived that because of the buying price and the renting price, you won’t make a profit from a studio apartment. You will make a profit! 

Rents, although cheap, come fast, and you spend less on marketing and advertising. Also, if you decide to put up your house for rent on Airbnb, you are going to make huge profits. The rise of Airbnb houses over hotels is one you can take advantage of through a studio apartment. 

from Feedster https://www.feedster.com/real-estate/are-studio-homes-a-profitable-investment-option/