The elderly are more prone to develop depression from physical, psychological, and economic changes, and 25.7% of the United Arab Emirates’ (UAE) elderly population suffer from depression. Color therapy is a widely accepted treatment to solve the depressive symptoms of the elderly. The color preference of the Seniors’ Happiness Centre—in Ajman UAE—a residential space for the elderly, could improve the quality of life, including depression symptoms. This paper explored the relationship between the color preference of the resident bedroom space and the depressive symptoms. As a methodology, using color images as stimuli, the physiological and psychological responses of the 86 elderly participants to the proposed color preference of the resident bedroom interiors—observed through a viewing box to simulate 3D space perception—were compared and analyzed to investigate the relationship between the color preference and depression by a survey with the Geriatric Depression Scale (GDS) and Electroencephalogram (EEG) measurement. The results showed that the elderly’s preference for warm colors is higher than that of cold colors, and each room needs a different color scheme because the elderly, 65 and above, have different visual characteristics. There was no significant difference between the left and right alpha wave values of the prefrontal cortex of the participant group. The main reason is that the brain waves are minute electrical signals and appear different from person to person. The color scheme on one side of the wall with increased saturation seemed to improve depressive symptoms effectively. It was found that psychologically, healthy elderly reacted positively to the single-color scheme of the Blue cool color, but elderly with depression reacted well to the contrast color scheme of the Blue-Yellow/Red cool color. This study will serve as critical data to propose more color preferences for the Seniors’ Happiness Center suitable for the elderly by studying the response to more diverse colors in the UAE.