Should I rent or buy in Dubai?
Compares total rent against total ownership cost net of equity built. Finds the break-even year and plots both lines. Hover the chart for year-by-year savings.
Is it cheaper to rent or buy in Dubai?
As of 2026, buying usually wins if you stay past the break-even point, typically 5 to 7 years, because rent growth (around 5% a year on average) and the equity you build with each payment compound in your favor. For shorter stays, renting often costs less since you skip roughly 7 to 8% in purchase fees. The calculator below computes the break-even year for your exact numbers.
4% rate, 25-year tenure, 20% down, 5% capital growth, 5% rent growth.
If you rent
If you buy
Horizon
Chart: rent vs buy over time
After 10 years
Where the LTV sits
Should I rent or buy in Dubai? The short answer
The calculator opens on two choices. Rent a unit for Dh95,000 a year, rising 5% a year. Or buy the same kind of unit for Dh1,500,000 with 20% down and a 25-year mortgage at 4%, which is Dh6,334 a month.
If prices rise 5% a year, buying pulls ahead in year two. If prices do not move at all, it pulls ahead in year four. So on this model: if you are staying at least four years and you have the down payment and buying costs, buying wins.
What the rent vs buy calculator counts
The rent line is all the rent you have paid by each year. The buy line is everything you have paid to own, minus the equity you hold: today's value of the home less what you still owe the bank. Where the buy line drops below the rent line, buying has become cheaper.
- The down payment, Dh300,000 on the default case.
- One-time costs with a mortgage, Dh116,340 here: DLD fee Dh60,600, agency Dh31,500, bank arrangement Dh12,600, registration trustee Dh4,200, mortgage registration Dh3,290, valuation Dh3,150 and NOC Dh1,000.
- Mortgage payments and the service charge, Dh18 per sq ft on 900 sq ft, or Dh16,200 a year.
Three things the model leaves out, which you should add yourself: the cost of selling when you leave, repairs and maintenance, and what your down payment could have earned elsewhere, such as in a bank deposit. That is why a short stay favours renting even more than the chart shows.
Rent vs buy over 10 years, year by year
| Year | Rent paid | Net cost of buying | Your equity |
|---|---|---|---|
| 1 | Dh95,000 | Dh105,021 | Dh403,528 |
| 2 | Dh194,750 | Dh88,789 | Dh511,968 |
| 3 | Dh299,488 | Dh67,411 | Dh625,555 |
| 5 | Dh524,935 | Dh8,216 | Dh869,167 |
| 10 | Dh1,194,900 | minus Dh248,604 | Dh1,587,029 |
From year six your equity is worth more than everything you paid to buy, so the net cost of buying turns negative: owning has made money. After ten years the gap in favour of buying is Dh1,443,504, if the 5% price growth assumption holds.
What if Dubai property prices do not rise?
Price growth is the biggest assumption in the model. The same unit under different assumptions; the last column is the gap after ten years.
| Assumption | Break-even | Buying ahead after 10 years |
|---|---|---|
| Default: prices +5%, rent +5% | Year 2 | Dh1,443,504 |
| Prices +2% | Year 2 | Dh828,654 |
| No price growth | Year 4 | Dh500,162 |
| No price growth, no rent growth | Year 4 | Dh255,262 |
| Mortgage rate 5% instead of 4% | Year 2 | Dh1,330,998 |
| 35% down instead of 20% | Year 1 | Dh1,524,504 |
Even with flat prices and flat rent, buying pulls ahead in year four. Part of every mortgage payment reduces the loan and stays with you as equity. Rent leaves nothing behind.
How the mortgage rate and down payment change it
Every half point on the rate moves a 25-year payment by about 5.3%, and a 20-year payment by about 4.4%. On the default case, 5% instead of 4% lifts the payment from Dh6,334 to Dh7,015 a month. A 35% down payment, which is the usual minimum for a non-resident, brings it down to Dh5,146.
When renting in Dubai makes more sense
- You are staying less than two to four years, so the buying and selling costs never earn back.
- You do not have the down payment plus about Dh116,000 of buying costs without touching your emergency savings.
- You are not sure which area you want to live in yet. A year renting there tells you things no listing will.
Frequently asked questions
Is it better to rent or buy in Dubai?
On this model, buying wins if you stay at least four years. On the default case, Dh95,000 a year in rent against a Dh1,500,000 purchase with 20% down, buying pulls ahead in year two with 5% price growth and in year four with no price growth.
How many years until buying breaks even in Dubai?
On the calculator's default case, year two with 5% annual price growth, and year four if prices do not move.
What is the monthly payment on a Dh1.5 million property?
With 20% down, a Dh1,200,000 loan at 4% over 25 years is Dh6,334 a month. At 5% it is Dh7,015.
What are the one-time costs of buying with a mortgage in Dubai?
About Dh116,340 on a Dh1,500,000 property with a Dh1,200,000 loan. The largest items are the Dh60,600 DLD fee and the Dh31,500 agency fee.
Do I lose money buying if Dubai prices do not rise?
Not on this model. With no price growth, buying pulls ahead in year four and is about Dh500,162 ahead after ten years, because part of each payment builds your equity.
What does the calculator leave out?
The cost of selling when you leave, repairs and maintenance, and what the down payment could have earned elsewhere. On a short stay, those three make renting more sensible than the chart shows.
How much does rent rise each year in Dubai?
The calculator assumes 5% a year by default, and you can change it or switch it off. Even with no rent growth and no price growth, buying wins from year four on this model.
What difference does a bigger down payment make?
With 35% down instead of 20%, the payment falls from Dh6,334 to Dh5,146 a month and buying is ahead from year one. Non-residents usually need at least 35% down.
How much does the mortgage rate change the payment?
Each half point moves a 25-year payment by about 5.3% and a 20-year payment by about 4.4%.
What service charge does the calculator assume?
Dh18 per sq ft on 900 sq ft, which is Dh16,200 a year, added to the cost of owning.