These Apartment Sizes Are Selling Fast Near Dubai Canal 2025!

REAL ESTATE2 months ago

Dubai Canal, one of the most prestigious waterfront destinations in the city, has become a hotbed for real estate investment. Located in the heart of Dubai, stretching from Business Bay to Jumeirah, this 3.2-kilometer waterway has added immense value to surrounding areas.

With luxurious living, waterfront views, and easy access to Downtown Dubai, apartments near Dubai Canal are highly sought after. But what sizes are actually in demand? Are buyers and renters preferring studios, 1-bedroom units, or more spacious homes?

A Snapshot of Dubai Canal’s Real Estate Boom

Since the opening of the Dubai Canal, real estate developers have rushed to launch premium residential projects along its banks. Areas like Business Bay, Al Habtoor City, and parts of Downtown Dubai now offer a variety of residential choices, from compact apartments to sprawling penthouses.

According to market reports and real estate platforms like Bayut and Property Finder, apartment size plays a critical role in both price appreciation and rental yield in this location.

Most In-Demand Apartment Sizes: Market Insights

1. 1-Bedroom Apartments – The Crowd Favourite

One-bedroom apartments remain the most in-demand unit size near Dubai Canal. These units strike the perfect balance between affordability and functionality. Ideal for single professionals, young couples, and investors, 1-bedrooms typically range between 650 to 850 sq. ft.

Why the demand?

Affordable entry price compared to larger units
High rental yield, especially for short-term rentals
Low maintenance costs
Popular with expats who want to live near Downtown without paying Downtown prices

2. 2-Bedroom Apartments – Ideal for Small Families

Two-bedroom units are also popular, especially among small families and working professionals sharing apartments. These range from 950 to 1,300 sq. ft and offer additional space for remote working or guests.

Demand drivers:

Family-friendly layout
Better long-term rental prospects
Appeals to both end-users and investors

3. Studios – Compact and High-Yield

Studio apartments, generally ranging from 400 to 600 sq. ft, are highly demanded for short-term rentals and investors looking for fast occupancy. Their affordability and ease of furnishing make them attractive.

Pros:

Cheapest option to buy or rent
High tenant turnover, but steady demand
Popular for Airbnb-style listings near tourist hotspots

4. 3-Bedroom Apartments and Penthouses – Niche But Growing

While not as widely demanded as smaller units, luxury 3-bedroom apartments and penthouses (1,500 to 2,500+ sq. ft) cater to high-net-worth individuals and families seeking premium waterfront living.

These units are limited in supply but see strong interest from:

Wealthy GCC nationals
Corporate tenants
Investors looking for capital appreciation

What Buyers and Renters Are Looking For

Beyond size, several other factors influence demand for apartments near Dubai Canal:

Balconies with canal views
Access to metro stations and main roads
Proximity to schools, shopping, and dining
Developer reputation and quality of interiors
Availability of parking and building amenities

ROI Trends by Apartment Size

According to data compiled from real estate platforms and agents operating in Business Bay and Al Habtoor City:

Apartment Size	Average Price (AED)	Average Rental Yield
Studio	850,000	6.5%
1-Bedroom	1.2 million	6.2%
2-Bedroom	1.8 million	5.8%
3-Bedroom	3.2 million	5.0%

Smaller units such as studios and 1-bedroom apartments offer the best rental yield, making them popular choices for investors focused on returns.

Developer Insights and Upcoming Projects

Leading developers such as DAMAC, Omniyat, and Al Habtoor Group continue to launch and promote apartment projects near the canal. Many are integrating smart home features, wellness spaces, and energy-efficient designs—particularly in compact units, aligning with buyer preferences.

Upcoming launches are expected to focus heavily on 1- and 2-bedroom formats, due to consistent demand and faster sales cycles.

Final Thoughts

The Dubai Canal continues to be one of the most attractive investment zones in the city. While ultra-luxury properties do grab headlines, it’s the practical and well-designed 1- and 2-bedroom apartments that are winning buyer and renter attention.

Whether you’re a young professional, a first-time buyer, or an investor looking for good rental returns, understanding the size preferences in this area is key to making a smart real estate decision.