Dubai is one of the largest resorts and an important business center. It is not surprising that every year the number of people wishing to come here for a long time or move permanently is only growing. UAE laws also promote positive migration. The state is interested in its development and gladly attracts foreign citizens to this process.
But everyone who is planning to live in Dubai or another city in the UAE faces the question of housing. To help you sort it out once and for all, here is a comparison of renting and buying real estate in Dubai. Of course, everyone makes the final choice themselves, but it is much easier to make it if you have all the possible information.
The Dubai real estate market is full of offers of various housing options both for purchase and for rent, for example at https://dubai.etagi.com/en-us/realty_rent/odnokomnatnye-kvartiry/. Not everyone has huge amounts of money to pay for the cost of an apartment or house in the UAE, so many people rent housing for years and decades.
Pros of renting an apartment in Dubai:
Disadvantages of renting an apartment in Dubai:
For those who have just arrived in the UAE or do not intend to live here for a long time, the rental option may be really attractive, but others should seriously consider the option of buying real estate in Dubai, Abu Dhabi or other cities.
According to UAE laws, foreigners are allowed to rent real estate for up to 99 years or buy it for full ownership in special freehold zones. In Dubai, finding housing suitable for purchase by a foreigner is not difficult, but is it worth it?
Pros of buying a home in Dubai:
Disadvantages of purchasing a home in Dubai:
As you can see, both renting and buying a home have their pros and cons. So it remains to evaluate what is more profitable: renting or buying a home in Dubai.
Of course, the price of both rent and purchase depends on the specific area, the situation inside the apartment, the wishes of the owner and much more. Therefore, we compare the most identical options. One-bedroom apartments can be purchased for 500 thousand. dirhams ( example ), renting such housing, in turn, will cost an average of 65,000 dirhams per year .
In case of rent we have the following expenses:
Total at the initial stage is about 14,000 dirhams.
For comparison, let’s take an apartment with a 15-year mortgage. The initial expense in this case will include the following items:
The total amount in this case will be approximately 375,000 dirhams.
So far, renting seems to be a clear advantage. However, everything is changing; real estate prices in Dubai have been growing steadily in recent years .
Costs for long term rental:
When purchasing, expenses are expected for:
As a result, for a purchase with all overpayments on the mortgage and maintenance of your own home it will cost 1.6-1.7 million dirhams, and for rent this amount will exceed 2.2 million dirhams. Not to mention the fact that when you rent a home, there is nothing left, but when you buy, you are left with a profitable asset that you can use yourself or leave as an inheritance to your children.
What is better : renting or buying an apartment in the UAE specifically for you, it’s up to you to decide. Use the data given above, model whether it will work specifically in your case and then make a decision. In any case, it is recommended to deal with real estate issues only with a real estate agency , because an experienced agent is guaranteed to save both your money and your nerves. If you want to deal with real estate in Dubai yourself, consider all the difficulties that you, as a non-resident, will encounter. Mistakes in this matter are very costly.