Studio vs 1BR: Which Has Better ROI in Dubai?

Studios look great on paper: lowest ticket, highest gross yield. The 2026 data says the 1BR is the better investment in most Dubai communities.

The gross yield trap

Dubai studios typically show 7.5–9% gross yield. 1BRs run 6–7.5%. On the surface studios win — but only in absence of friction.

What actually happens

Metric	Studio	1BR
Avg vacancy (days/yr)	28–40	15–22
Tenant turnover	Every 12–14 months	Every 18–24 months
Re-listing costs (agent fee)	~5% of annual rent	~5% of annual rent
Typical service charge drag	AED 14–20/sqft	AED 12–18/sqft

By area (2026 data)

JVC — Studio 7.2% gross → 4.8% net. 1BR 6.8% gross → 5.1% net. 1BR wins.
Business Bay — Studio 7.0% gross → 4.2% net. 1BR 6.5% gross → 4.6% net. 1BR wins.
Dubai Marina — Studio 5.7% gross → 3.7% net. 1BR 5.4% gross → 3.9% net. 1BR narrowly wins.
International City — Studio 9.2% gross → 6.4% net. 1BR 8.4% gross → 5.8% net. Studio wins here.
Downtown Dubai — Studio 4.8% gross → 2.9% net. 1BR 4.7% gross → 3.1% net. 1BR wins.

Resale liquidity

1BRs in Dubai resell 2–3x faster than studios on average. In a downturn, studio resale can stall for 6+ months. This matters for exit timing.

The exception

Studios dominate in entry-level markets where buyer budgets top out around AED 500k: International City, parts of Dubai South, and older Discovery Gardens stock. There, studios retain demand because 1BR ticket is just out of reach.

Use the rental yield calculator to run specific unit comparisons.