A 2025 Guide on Serviced Apartments: Abu Dhabi & Dubai
In both Abu Dhabi and Dubai, you can purchase a property from a wide range of options, including residential apartments, villas, townhouses, hotels, and serviced apartments. In addition to hotel rooms, serviced apartments remain consistently in high demand, since they offer ideal living conditions for expats and visitors alike. It is crucial, however, to be well-informed about the serviced-apartment industry in Abu Dhabi and Dubai before buying or investing in one.
In this guide, we’ll explain what serviced apartments are, and give you a list of projects with serviced apartments in Abu Dhabi and Dubai. Let’s get started.
Serviced Apartments Market Statistics in Abu Dhabi and Dubai - 2025
Statistic | Abu Dhabi | Dubai |
|---|---|---|
Projected Growth in Demand | 12-18% annual increase | 15-20% annual increase |
Occupancy Rates | 80-85% in high-demand areas | 85-90% in high-demand areas |
Rental Yields | 5-7% annual rental yields | 6-8% annual rental yields |
Price Growth (per sq. ft.) | 3-4% annual increase | 4-5% annual increase |
Short-Term Rental Market | 25-35% of market | 30-40% of market |
Hotel-Serviced Apartments Growth | 8-12% increase by 2025 | 10-15% increase by 2025 |
What are Serviced Apartments?
Serviced apartments, often referred to as Corporate Housing or Aparthotels, are fully furnished, independent living spaces that come with hotel-like services, offering comfort and convenience for both short term and long term stays.
With serviced apartments, you get the benefits of both a residential apartment and a hotel room. They are spacious apartments with every luxury and amenity a hotel apartment should offer. They also have a layout identical to those of regular apartments, including separate kitchens and bedrooms. They also have various features and amenities. Let’s cover all of them in more detail below.
Who Uses Serviced Apartments?
Serviced apartments are popular among business travelers, expats, and tourists due to their flexibility and comfort. Business professionals prefer them for longer stays because they offer more space and privacy than hotel rooms. Expats, on the other hand, appreciate the convenience of having fully furnished units with short-term leases, making relocation easier.
Tourists and families also opt for serviced apartments for the home-like atmosphere and access to hotel-like amenities. They are increasingly favored by remote workers and digital nomads, offering a great blend of living and working spaces with easy access to local attractions.
Features and Benefits of Serviced Apartments
A perfect combination of the comfort of a home with the convenience that a hotel offers. They come with several key features that make them an attractive option for both short-term and long-term stays. Here are their key features:
Fully Furnished
Regular Housekeeping
Concierge Services
On-Site Amenities
Flexible Leases
Prime Locations
24/7 Security
Services apartments are fully furnished which can save you the hassle and time of setting up your home and they also include regular housekeeping like cleaning and laundry.
Having in the 24/7 concierge services, you can easily arrange bookings and transportation. Many serviced apartments in Abu Dhabi and Dubai also offer on-site amenities like gyms, pools, and restaurants. Whether you are staying for a short period of time or long-term, there are flexible lease options in both cases
Serviced apartments are usually located in central areas of Abu Dhabi and Dubai, providing you easy access to work, shopping and entertainment. Security and maintenance services are also available around the clock for added convenience.
Why are Abu Dhabi and Dubai Prime Markets for Serviced Apartments?
Abu Dhabi and Dubai are great places to start looking for service apartments since there are plenty of options to compare and choose from, while all apartments are set in prime locations in the city. Since Dubai is known for its world-class infrastructure, and Abu Dhabi for the perfect mix of traditional and modern architecture, there is no better place to start your search for either a short or a long-term stay. Your choice of serviced apartment in either city offers easy access to key business districts, shopping malls, and entertainment venues, making them highly desirable for both residents and investors.
Renting and Buying Serviced Apartments in Abu Dhabi
Moreover, buying a serviced apartment in the city of Abu Dhabi can be a smart choice for those looking to enjoy both convenience and long-term value. These properties are often situated in prime locations, making them highly desirable to renters and buyers alike. Over time, serviced apartments tend to appreciate in value due to their proximity to key business and entertainment districts, as well as the growing demand for flexible living spaces that combine the benefits of both residential and hotel-like amenities.
How Long-Term Serviced Apartments in Abu Dhabi Work
Long-term serviced apartments in Abu Dhabi provide fully furnished, hassle-free living with amenities like housekeeping and concierge services. Available for rental terms from a few months to a year, these apartments offer flexibility and are located in prime areas close to business hubs and entertainment. They combine the comfort of a home with the convenience of hotel-like services, making them ideal for extended stays.
These apartments can give you privacy and convenience while eliminating the need for tenants to manage utilities and maintenance. They are an attractive option for those on business assignments or relocating to the city.
Monthly Rent for Serviced Apartments in Abu Dhabi
Location | Rent Price (Monthly) |
|---|---|
Mohamed Bin Zayed Centre | AED 2,900 (Studio) |
Copthorne Downtown | AED 7,500 (1-Bedroom) |
Al Raha Beach | AED 14,500 (2-Bedroom) |
Dusit Thani Abu Dhabi | AED 10,500 (Studio) to AED 12,000 (1-Bedroom) |
Monthly Rent Prices for Serviced Apartments(studio, 1-Bedroom and 2-Bedroom) in Abu Dhabi
Depending on the location of the serviced apartment in Abu Dhabi, its size and amenities, the monthly rent can vary. You can find 1-bedroom apartments in Copthorne Downtown for about AED 7,500, whereas Al Raha Beach is more expensive, with the price of AED 14,500 for a 2-bedroom apartment. Studios, on the other hand, are the cheapest, so you can find a studio in Mohamed Bin Zayed Centre for AED 2,900 a month. Keep in mind that prices can vary based on the season and other factors.
Prices of Buying Serviced Apartments in Abu Dhabi + Factors That Affect it
Location | Apartment Type | Price |
|---|---|---|
Hydra Avenue Towers, Al Reem Island | Studio | 650,000 |
Fairmont Marina Residences | 1-Bedroom | 3,099,999 |
Bloom Arjaan, Saadiyat Island | 1-Bedroom | 1,400,000 |
Beach Towers, Al Reem Island | 3-Bedroom | 2,400,000 |
Yas Bay, Yas Island | 2-Bedroom | 1,852,000 |
Mamsha Al Saadiyat, Saadiyat Island | 2-Bedroom | 8,500,000 |
Prices for Buying Serviced Apartments in Abu Dhabi
There are a lot of factors that can affect the price of a serviced apartment located in Abu Dhabi. Some of those factors include the location of the apartment, type and size so it is important to understand how these elements can impact the overall price. Some prime areas in Abu Dhabi like the Corniche or Al Reem Island have pricier serviced apartments.
Let's cover all the key factors that can influence the price of serviced apartments, including the following:
Location
Size
Amenities
Building Quality
Market Demand
Duration of Stay
The location plays a crucial role in pricing, with apartments in prime areas like business districts or near transport links being more expensive. The size of the apartment also impacts its cost—larger units or those with more rooms typically come at a higher price. Amenities such as pools, gyms, and concierge services increase the value, driving up the price.
Building quality is another factor, as properties in well-constructed buildings by reputable developers often command higher rates. Market demand can also affect prices, with costs rising during peak seasons or events. Lastly, the duration of stay influences pricing, as short-term rentals tend to be priced higher per night compared to long-term stays.
Investment Potential and High Rental Yields
With a prime location and strong demand, these properties in Abu Dhabi tend to offer higher rental yields compared to traditional properties. Moreover, the professional management services typically associated with serviced apartments reduce the operational burden for owners, providing a more hands-off investment experience. For those seeking consistent returns with minimal effort, serviced apartments present a reliable and attractive option.
The flexibility of renting out these properties for both short-term and long-term stays further improve the earning potential. Lastly, serviced apartments are less likely to experience vacancies due to the high demand for flexible, fully-serviced living spaces in key urban areas.
Renting and Buying Serviced Apartments in Dubai
When you rent a serviced apartment in Dubai, you’re basically renting an apartment within a hotel and this is a very popular practice in Dubai. The rents for serviced apartments are usually higher than those for regular residential properties, so you can expect greater rental returns than you would with any other type of investment property, even though you won't pay a premium to buy a serviced apartment. Moreover, you could offer short-term or long-term rentals. If you want to know more about these types of rentals, read our blog Short Term vs. Long Term Rentals in Dubai.
Long-Term Serviced Apartments in Dubai
Those who need flexible, hassle-free living for an extended period can enjoy long-term serviced apartments. Dubai can be a great place to find these types of accommodation since they are located in prime areas like Downtown Dubai, Dubai Marina, and Business Bay and provide easy access to important business hubs, shopping malls and entertainment.
There are a lot of options for long-term serviced apartments too since Dubai has a growing real estate market. So, if you need a prolonged stay, whether for work, relocation or other reasons, long-term serviced apartments can give you the perfect balance of comfort, flexibility and luxury.
Monthly Rent for Serviced Apartments in Dubai
Location | Rent Price (Monthly) |
|---|---|
Dubai Marina | AED 10,000 to AED 20,000 |
Business Bay | AED 15,000 to AED 20,000 |
Downtown Dubai | AED 12,500 to AED 20,800 |
Dubai Production City | AED 10,000 to AED 12,000 |
Monthly Rent Prices for 1-Bedroom Serviced Apartments in Dubai
Monthly rent for serviced apartments in Dubai can fluctuate based on location, size, and amenities. On average, studio apartments range from AED 5,000 to AED 12,000, while one-bedroom units typically cost between AED 8,000 and AED 18,000. Two-bedroom apartments can range from AED 12,000 to AED 25,000, with luxury options exceeding AED 30,000. Prices are higher in prime areas like Downtown Dubai and Dubai Marina, and may increase during peak seasons or major events.
Price of Buying Serviced Apartments in Dubai + Factors That Affect it
Location | Apartment Type | Price |
|---|---|---|
Palm Jumeirah | 1-Bedroom Hotel Apartment | AED 1,850,000 |
Culture Village, Palazzo Versace | 2-Bedroom Serviced Apartment | AED 4,300,000 |
Address Sky View (Downtown) | 3-Bedroom Serviced Apartment | AED 5,698,888 |
Dubai Creek Harbour (The Lagoons) | 3-Bedroom Serviced Apartment | AED 3,617,918 |
Dubai Marina | 1-Bedroom Serviced Apartment | AED 2,250,000 |
Prices for Buying Serviced Apartments in Dubai
Just like with Abu Dhabi, the prices of serviced apartments will show a big fluctuation based on the location, size and type. For example, Dubai Marina will have a higher price tag because important business hubs and popular landmarks are nearby. Other factors also play a part in determining the overall cost of serviced apartments in Dubai, so let's go over the key factors that can influence the price of serviced apartments in Dubai:
Prime Locations
Apartment Size
Exclusive Amenities
Property Age and Quality
Demand Fluctuations
Length of Stay
In Dubai, location is a major factor in pricing, with areas like Downtown Dubai, Dubai Marina, and Palm Jumeirah being more expensive because of their proximity to key landmarks and business hubs. The size also affects the price, with larger units or those with more bedrooms typically priced higher.
Amenities like pools, gyms, and concierge services contribute to higher rental rates, catering to the luxury lifestyle that Dubai offers. Pricing also fluctuates with market demand, rising during peak seasons or events like the Dubai Shopping Festival, and decreasing during off-peak times.
Lastly, duration of stay influences the rate, with short-term rentals priced higher per night and long-term rentals often offering better value for extended stays. These factors together shape the diverse and competitive market for serviced apartments in Dubai.
Investment Potential and High Rental Yields
Serviced apartments are becoming a highly sought after option for investors in Dubai. They can benefit from the growing need for accommodation, as well as the subsequent increase in market demand, which will ensure a steady, perpetual flow of rental income. In general, these apartments cost more than regular residential properties due to the better services they provide.
Serviced apartments offer a hands-off investment experience, as they are typically managed professionally, reducing the operational burden for owners. Also, the flexibility of renting out these properties for both short-term and long-term stays enhances their earning potential, making them an attractive option for those seeking consistent returns in a dynamic market.
Projects With Serviced Apartments in Abu Dhabi and Dubai
Abu Dhabi and Dubai are home to a growing number of projects offering serviced apartments, providing both residents and investors with a high-quality living experience. These projects are designed to offer convenience, luxury, and flexibility, often featuring world-class amenities such as 24/7 concierge services, housekeeping, fitness centers, and on-site dining options. Located in prime areas, these developments cater to those who value comfort and accessibility in the heart of the city, whether for short-term stays or long-term residency.
Kredium offers a selection of serviced apartments in both Abu Dhabi and Dubai, situated in some of the most popular locations. These apartments are also being offered by more and more hotels, including:
1. SLS Tower, Downtown Dubai
2. RH Rove City Walk, City Walk / Al Wasl
3. Radisson Dubai DAMAC Hills, Damac Hills
4. Suburbia, Jebel Ali
5. Golf Grove, Dubai Production City
6. Mandarin Oriental Residences, Saadiyat Island
7. The Bristol, Emaar Beachfront
8. Hotel London, The World Islands
Insurance for Serviced Apartments
While home insurance isn't legally required, it’s strongly recommended for both property owners and tenants for a peace of mind. Property owners should protect themselves in case of damages, fires, theft and other unlikely situations. Owners can get legal help to avoid any claims or accidents that can happen when tenants are occupying the property.
Tenants also benefit from having insurance when it comes to their belongings, especially since serviced apartments are fully furnished and can have valuable items. In general, insurance can minimize the risks, reduce potential costs and make sure both parties are fully protected.
Here is a list of the different insurance type for serviced apartments:
Building insurance
Content insurance
Liability Coverage
Rental Income Protection (for property owners)
Tenants' Contents Insurance
Building insurance is crucial, as it protects the structural integrity of the apartment against unforeseen events such as fire or flood. Content insurance is also important, covering personal belongings in case of theft or damage. Additionally, liability coverage can protect against legal claims resulting from accidents that may occur on the property.
For property owners, it’s important to have a comprehensive policy that includes building, contents, and liability coverage. With the transient nature of serviced apartments, liability protection is particularly valuable. Some insurance plans also offer rental income protection, ensuring you are covered in case your property becomes uninhabitable due to an event covered under the policy.
Tenants can also benefit from contents and liability insurance, ensuring their personal belongings are protected and offering coverage in the event of accidents within the apartment. Consulting with an insurance provider will help you tailor a plan that meets your specific needs, ensuring your serviced apartment is well-protected.
FAQs About Serviced Apartments in Abu Dhabi and Dubai
Serviced apartments in Abu Dhabi and Dubai are popular for their convenience, flexibility, and range of amenities, catering to both short-term and long-term stays. Here are some frequently asked questions to help you navigate the options and make informed decisions about serviced apartments in these cities.
1. How do serviced apartments work?
Serviced apartments work by offering fully furnished, self-contained living spaces that combine the comfort of a home with the convenience of hotel-like services. Renters can choose flexible lease terms, ranging from a few days to several months, with the option of additional services like room service, laundry, and access to facilities such as gyms or pools.
2. How much is insurance for serviced apartments?
Generally, for landlords or investors, the insurance could range from AED 1,500 to AED 5,000 annually, covering property damage, liability, and other risks. For tenants, contents insurance (covering personal belongings) might cost around AED 500 to AED 2,000 per year, depending on the level of coverage and the apartment's value.
3. How to run serviced apartments?
Running serviced apartments involves managing the property by providing fully furnished units with essential amenities like housekeeping, Wi-Fi, and 24/7 support. You’ll need to set competitive pricing, market the apartments on various platforms and make sure there is regular maintenance and customer service. Additionally, you can choose to handle operations yourself or hire a property management company for more efficiency.
To Sum Up
Serviced apartments in Abu Dhabi and Dubai can be beneficial for investors of all kinds. Investing in the right property can yield massive returns as long as you select it wisely. In addition, if you take mortgage financing, you can invest in properties whose values far exceed your capital and pay off these mortgages through the rental income that your serviced apartment generates.
Kredium can help if this sounds like something you'd be interested in. With a team of experienced mortgage and real estate professionals, a property portal of 5000 units of different types and a selection of mortgage options, we have everything you need. Get in touch with us and sign up to get started on buying a property today.
Make sure to check back here to get more information about other projects with serviced apartments in Abu Dhabi and Dubai as this blog will be updated. Take a look at our blog section and get familiar with Abu Dhabi and Dubai real estate and mortgage market.
Photo Credits: Freepik
Photo Credits: Kredium
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