Rent or buy in Dubai?

How the comparison works

The buyer pays the down payment and the one-off costs (land department fee, agent, trustee, bank and valuation), then the mortgage and service charges each month. The renter starts with the same cash invested and pays rent, which rises each year.

Each month, whoever spends less invests the difference at the return you choose. At the end, the buyer sells (we take off 2% for the agent) and pays off the loan; the renter keeps their investments. The calculator compares the two.

What usually decides it

• How long you stay. Buying costs 7% to 8% up front, so short stays usually favour renting.
• Rental yield. When rent is high compared to the price (6% or more is common in Dubai), buying tends to win sooner.
• Price growth versus investment return. Small changes here move the result a lot. Try a pessimistic case too.

Questions people ask

Is it better to rent or buy in Dubai?

It depends mostly on how long you stay. With the 7% to 8% purchase costs, buying usually only pays off after 3 to 6 years, sooner when rents are high compared to prices.

What is a good rental yield in Dubai?

Gross yields of 5% to 8% are common for apartments, higher in outer communities. Service charges usually take 1 to 2 points off.

What service charges should I expect?

In Dubai roughly AED 10 to 30 per square foot a year for apartments, depending on the building. The Dubai Land Department publishes them in its service charge index.

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