‘Student accommodation in the UAE’: what makes it attractive to investors

Many investors are absolutely not betting on student accommodation. However, it is the one that shows a rapid growth rate and attractive prospects. Often even brokers working in the UAE underestimate this type of property. We tell you what benefits investors can discover.

What is a student property in the UAE

There are several types of housing in the UAE that are attractive to students.

• Campuses. A type of property on (or close to) the campus of an educational institution. Most often these are rooms created for shared accommodation. This type of housing is usually maintained and managed by the university.
• Apartments owned by an institution of higher education. These are full-fledged apartment complexes that the university rents specifically for students. Usually, housing in such a residential complex is more favourable in cost, which is an undeniable plus for students.
• Purpose-Built Student Accommodation (PBSA). These apartments are pre-arranged for accommodation and are not associated with any particular university.

Popular neighbourhoods for students in Dubai

The most common student accommodation is located in areas such as Dubai Silicon Oasis, Jumeirah Village Circle, Dubailand, International City. Students usually choose apartments that can accommodate several people at a time.

Perspective for investors

Thanks to the government programme ‘The National Strategy of Higher Education 2030’, the UAE plans to meet the needs of the real estate market related to higher education.

Investors may be attracted not only by the demand for student housing, but also by the high quality standards adopted in the United Arab Emirates. Complexes for students 一 are modern apartments with developed infrastructure, common territory for recreation and education, sports grounds and security.

All these ‘bonuses’ create comfortable conditions for living and studying. Due to the stable demand and attractive atmosphere, student housing in the UAE is a reliable and profitable investment.

Predictions for the future

Undoubtedly, student housing is still a niche sector. However, its prospects are quite interesting, as the UAE continues to attract students from different countries. Moreover, in 2024, the Emirates was for the first time ranked among the world's top 200 higher education institutions with the best reputation.

Bloom Arjaan by Rotana Hotel 一 a residential complex located on Saadiyat Island in Abu Dhabi. The project is in close proximity to New York University Abu Dhabi, which will undoubtedly be beneficial for teachers and students. The developed internal infrastructure will appeal to all residents with infinity pool, fitness centre, walking areas, green spaces and recreational locations. The famous Saadiyat Beach can be reached in 10 minutes by car.

Handover: 4th quarter 2024

Price: from AED 951000

Conclusion

A brief checklist of the benefits for those investors who want to invest in UAE property and then rent it out to students.

• The demand for student housing exceeds the supply.
• Statistically, students are considered the most responsible tenants.
• The opportunity to rent the apartment on a long-term basis to the same guests for 4-5 years.
• Small risk of getting into dishonesty of the tenant: usually, if the student himself avoids payment, the landlord has a guarantee contract issued to his relatives.
• If an investor wants to invest in a PBSA, they should not fear large sums for repairs and maintenance. Usually, student housing is regulated by the state, so developers use the highest quality materials possible for construction. In addition, the owner will always have the assistance of the educational institution in managing the property.