Why One Bedroom Apartments Have Higher ROI For Airbnb In Dubai

Some property owners rake in ungodly amounts of rental income.

Others? Not so much.

The secret might be simpler than you think. One-bedroom apartments have higher ROI for short-term rentals—and for good reason.

You might ask, “Aren’t bigger properties better?” Not always. So what makes 1-Beds profitable…? Is it the lower upfront cost? The high occupancy rates?

Okay, that’s a lot of questions. 

In this article, we’ll break down exactly why 1BR apartments are better in terms of returns when compared to other rental types. 

Let’s dig in.

TL;DR 

• 1BR properties are better because they have high occupancy rates and lower investment costs.
• Lower maintenance costs and simpler management boost their profitability.
• They appeal to all groups of travelers – solo travelers, couples, and business folks alike.
• Smart strategies like dynamic pricing increase ROI on 1-beds. 
• You can overcome common 1-bed challenges by curating a phenomenal experience for guests.

5 Major Benefits of One-Bed Apartments For Short-Term Rentals

1. High Market Demand

One-bed apartments rule short-term rentals because their market demand is through the roof. These cozy spaces tick all the boxes for most solo travelers, couples, and even small families looking for a home base to explore new cities.

The market demand for these apartments is high not only in Dubai but also in places like Miami Beach and Los Angeles.

Think about it.

• A business traveler? They want a comfy bed and a desk.
• A couple visiting? They’re after a romantic retreat.

1-beds deliver exactly what most people need. And with the right Airbnb location? Even better.

2. Low Investment Capital

Compared to 2 beds, villas or penthouses, 1-beds remain relatively cheap and affordable. This makes them easier to invest in, even if it’s your first time. 

Even better, the high occupancy rates and market demand makes it easy for 1-beds to quickly start making you money. 

3. More Affordable for Guests

Let’s talk money – not just yours, but your guests’ too.

One-bedroom Airbnbs are more affordable, and that’s music to budget-conscious travelers’ ears. 

Lower nightly rates mean more people can afford to stay. It’s a win-win. Guests get a great deal, and YOU get more bookings. Plus, affordable rates get longer stays. Visitors may stretch a weekend trip into a week when the price is right.

Data backs this up.

AirDNA reports that in many markets, one-bedroom units have the highest revenue per available room night. 

Translation? 

As a sharp host, you’re making more money per square foot.

4. Quick and Easy Cleaning

Time is dinero – and it’s not any different with Airbnbs.

Consider this:

• Smaller space = faster cleaning time
• Fewer surfaces to scrub and sanitize
• Less furniture to maintain

A professional cleaner or cleaning services might take 1-2 hours for a studio or one-bedroom apartment. A larger home? You’re looking at 4-6 hours or more. That time difference translates directly to cost savings.

Photo by: Mart Production 

But it’s not just about saving money. 

Quicker cleaning means faster turnaround for new bookings. In a busy market like Dubai, this means squeezing in an extra booking or two each month. In major cities, efficient cleaning can significantly boost occupancy rates and overall profitability.

And more bookings? That’s what matters to investors.

5. Lower Operational Costs

Maintenance and operating costs are the necessary evil of property ownership. But it’s easier with smaller spaces.

• Fewer appliances to maintain or replace
• Less square footage = fewer things to fix
• Simpler systems (like plumbing and HVAC) mean easier repairs

In a city like Dubai, operational costs can be managed effectively with one-bedroom apartments.

Take painting, for example.

Repainting a 1-bed might cost you $500-$1000. A three-bedroom house? You’re looking at $1500-$3000 or more. That’s a big difference in your maintenance budget.

With a one-bed unit, you can keep your condo in shape without breaking the bank.

Property Types For Airbnb & Short-Term Rentals

Photo by: Max Vakhtbovycn

• Entire spaces offer size and freedom — perfect for groups.
• Private rooms strike a balance between cost, comfort, and privacy.
• Shared rooms are budget-friendly — perfect choice for solo adventurers.
• Villas are spacious retreats — ideal for large families or luxury seekers.
• 1-bedrooms fit all groups of travelers — couples, solo travelers, or business folks.
• 2-bedroom apartments are perfect for — couples or business partners.
• 3-bedroom apartments are group-oriented spaces — suited for larger families or friend gatherings.
• Studio apartments are compact and efficient — mostly ideal for solo travelers.

Airbnb property types cater to different markets, needs, and budgets — giving hosts flexibility in the market. But here’s the kicker: one-bedroom apartments often make the most money. 

Why? 

Not too big, not too small, just right. You know what we mean. They make the best type of property for Airbnb due to their high occupancy rates and lower costs.

What’s the ROI of 1-Bed Apartments?

In one sentence — 1 BRs are cheaper to invest in and usually bring relatively more rental income. Now in more sentences:

Investors

• One-beds in Dubai can fetch around 300-500 AED per night
• Initial investment? Often cheaper than other property types (duh)
• Occupancy rates? 60%+ depending on the location

Guests

• Price: More budget-friendly
• Size: Just right for most travellers

How To Maximize the Rental Income of One-Bed Vacation Rentals

The short-term rental market in Dubai is competitive. To stand out, you need to think like a guest, not just a property owner. What would make YOU choose an apartment over others?

Let’s explore exactly what you should do.

1. Choose the Right Location

Smart neighborhood = higher rent + packed calendar.

Positioning your apartment near major destinations is the secret to profitable vacation rentals. A killer neighborhood means you can charge more rent and keep that occupancy rate sky-high.

Choosing the right location in Dubai can significantly impact rental income.

But what makes anyone go “Wow” when they visit? Easy. Just think like your guests:

• Tourist attractions nearby? Check.
• Easy public transportation? You bet.
• Nearby restaurants and shops to visit? Now you’re talking.

After all, who wants to trek miles? Not your guests, that’s for sure. 

2. Have Essential Amenities

Your one-bedroom might not be a palace, but it can still feel fab with the right luxury amenities. 

Consider adding:

• A hot tub
• Smart TV for binge-watching
• A cozy workspace for people who work from home
• A well-equipped kitchenette for home-cooked meals

Pro tip: A Nespresso machine can be useful. Coffee addicts will thank you (and maybe even leave a glowing review).

3. Encourage Reviews

Speaking of reviews, guest satisfaction is everything. Encourage guests to leave feedback by going above and beyond. A welcome letter, basket with treats, or a personalized guide to Dubai can make a guest go; “Aww this host cares about me!”

P.S: At Homevy, this is a standard we do for all our property owners -– and every property we manage. We go the extra mile to ensure every guest feels welcome — in a special way.

4. Use Dynamic Pricing

Pricing strategy is crucial. Use tools to analyze the market and adjust your rates accordingly. During events like the Dubai Shopping Festival — or any major event in Dubai, you can afford to be a bit more… ambitious with your pricing.

5. Optimize Your Rental Listings

In your listings on Airbnb or Booking.com listing optimization is key. Describe your property as seductively as possible. It’s just like optimizing a profile on Tinder. What would make anyone swipe your profile book your property?

Again, think like a guest – not a host. What type of pictures will make you stop scrolling and start booking? That’s right. Clean pictures. So hire a pro photographer or learn some photography skills. Trust us, it’s worth it.

Even better, we relieve our property owners of this stress. We take the sickest shots of their rental spaces, and deploy our battle-tested marketing team to carefully optimize EACH property.

Other ROI Boosters

• Offer airport pickup (for a fee, of course)
• Partner with local tour operators for exclusive deals
• Consider your target audience and tailor your interiors & marketing accordingly

By implementing these strategies, you’ll be well on your way to maximizing your one-bedroom’s income potential.

Managing Your 1-Bed AirBnB Holiday Homes Apartment

Think of your apartment as a living, breathing entity. Property management is crucial to its success. It needs care and attention to thrive. Remember, people are buying an experience, not just a room. 

1. Stock up on essentials
2. Have multiple sets of linens
3. Regular inspections (bi-weekly is ideal)
4. Use smart locks for seamless check-ins
5. Address issues ASAP (leaky faucets won’t fix themself)
6. Update and upgrade (keep your spot fresh and competitive)
7. Provide local recommendations (be their personal Dubai guru)

Pro Tip: It may seem a little difficult to take all of these on as a host. You can either employ a team to carry out these tasks or use a reputable Airbnb management service like Homevy.

Overcoming Common Challenges With 1 Bed Airbnb Apartments 

1. How To Maximize Space in One-Beds

One-beds are cozy, but they can feel cramped without proper optimization. Here’s how to fix that:

• Install smart storage solutions
• Create the illusion of space with mirrors and light colors
• Use multi-functional furniture (sofa beds are your friends)

A well-designed layout will make even the smallest room feel welcoming and with better access.

2. How To Avoid Bad Reviews

Even Jesus was crucified for what he didn’t do. How much more you – a mortal host? There’ll be those occasional guests that…well, let’s not say it. But you get what we mean. Here’s how to fix negative Airbnb reviews:

• Address issues head-on
• Respond promptly and professionally
• Use feedback to improve your offering

3. How To Avoid Competition from Hotels

• Tell the story of your apartment’s “experience”
• Offer seductive pricing, especially for longer stays
• Emphasize the benefits of having a kitchen and living room to yourself
• In general, provide useful amenities to gain a better advantage over hotels

Closing Thoughts

By now, you understand why one-bedroom apartments are a smart investment choice. But even better, you also understand the challenges that can come with these property types, so you can make an informed decision.

With the right strategy and management, you’ll generate high rental income and get a strong return on your investment.

I hope you’ve found this blog helpful.

Until the next one.