How the comparison works
Buying: you pay the down payment and purchase fees, then mortgage payments, service charges and maintenance. When you sell, you get back the sale price minus selling costs and the remaining loan. Net cost = everything paid − equity recovered.
Renting: you pay rent (rising each year), but keep your down payment and fees invested, plus any monthly amount owning would have cost above rent. Net cost = rent paid − investment growth.
What tips the balance
- Time: fees are paid once, so the longer you stay the more they are spread out.
- Price-to-rent ratio: if a home costs more than about 20 years of rent, renting is often cheaper.
- Rent growth: Dubai rents rose sharply in 2022–2025; owners are protected from these rises.
- Interest rates: each 1% on a AED 1.44m loan changes the payment by roughly AED 800 a month.
- Job security: an expat who must leave the UAE quickly may have to sell at a bad time.
Next steps: estimate your monthly payment with the mortgage calculator, and if you rent, check whether your landlord’s renewal increase is allowed with the Dubai rent increase calculator.
A simplified model for comparison, not financial advice. Real outcomes depend on future prices, rates and personal circumstances.
Frequently asked questions
How long do I need to stay in Dubai for buying to make sense?
Because buying costs around 7–8% of the price upfront with a mortgage, and selling costs another 2% or so, buyers usually need to stay at least 4–6 years for buying to beat renting – longer if prices are flat and shorter if rents are rising fast.
What does the calculator assume?
A 25-year repayment mortgage, typical Dubai purchase fees (DLD 4%, 2% agency, bank and registration fees), maintenance of 0.5% of the price per year, and 2% + VAT selling costs. The renter invests the cash they would have spent on buying at the return you enter.
Does buying give me a residence visa?
Owning property worth AED 750,000 or more can qualify for a 2-year property investor visa, and AED 2 million or more for a 10-year Golden Visa, subject to conditions. This calculator does not put a value on visa benefits.
Why is my “net cost of buying” so low or even negative?
If you assume strong price growth, the equity you recover on sale can exceed what you paid. Try conservative appreciation (0–3%) to see a cautious scenario.
Last reviewed: October 2026