Souk Weekly · Tools
Rent, or buy?
The Dubai question with no clean answer — until you put numbers on it. Fees, mortgage, appreciation and resale, weighed against the rent you’d pay anyway.
Over 5 years, buying is cheaper by
AED 224,961
Net cost to BUY
AED 252,861
Mortgage ≈ AED 6,670/mo · resale ≈ AED 1,738,911
Total cost to RENT
AED 477,822
5 yrs at 3%/yr growth
Model assumptions: ~6% buying transaction cost (DLD + agent + fees), ~1.5%/yr service charge and maintenance, 2% selling cost. “Net cost to buy” credits back your equity and any appreciation at sale, so it can go negative if the property gains enough. Ignores the return you might earn investing the down payment instead. An estimate to frame the decision — not financial advice.
Before you decide
- Is it better to rent or buy in Dubai?
- It depends mostly on how long you'll stay. Buying carries high upfront costs — around 6% in transaction fees plus a 20–25% down payment — so it usually only beats renting if you hold the property for several years and it appreciates. The shorter your horizon, the more renting tends to win.
- What are the upfront costs of buying property in Dubai?
- Budget roughly 6% of the price in one-off costs: the Dubai Land Department transfer fee (about 4%), an agent commission (about 2%), plus mortgage registration and processing fees — on top of your down payment, typically 20% for residents.
- What ongoing costs should I include?
- Annual service charges and maintenance commonly run around 1–2% of the property value per year, alongside your mortgage payments. When you sell, expect about 2% in selling costs. This calculator credits back your equity and any appreciation at resale.