Quick answer
On our Dubai defaults (AED 1.8 million apartment, AED 120,000 a year rent, 4.5% mortgage, 20% down), buying overtakes renting in about three years, because rents are high relative to prices and there's no annual property tax. The big risks are short stays — upfront costs are around 7% — and falling prices: with flat or falling values and no rent growth, renting wins.
Rent vs buy calculator Dubai: how do you use it?
Enter the property price in AED, your annual rent divided by 12, your mortgage rate and down payment, then check the 7% buying cost and monthly service charge against the specific unit. On our Dubai defaults, buying overtakes renting in about three years and finishes roughly AED 980,000 ahead after ten, because Dubai rents are high relative to prices and owners pay no annual property tax. That result holds only if prices don’t fall: with flat values and flat rents, renting wins.
The calculator simulates each month. The buyer pays the down payment and fees upfront, then mortgage instalments, service charges, maintenance and insurance. The renter pays rent plus the housing fee, invests the cash the buyer spent on day one, and invests any monthly saving. At the end, the buyer sells and pays agent fees. The methodology page explains each step.
Why our UAE defaults are set this way
| Input | Default | Reasoning |
|---|---|---|
| Property price | AED 1,800,000 | A well-located two-bedroom apartment in a mid-market Dubai community |
| Rent | AED 10,000/month (AED 120,000/year) | Annual rent for a comparable unit |
| Mortgage rate | 4.5% | A typical expat rate; most are fixed for 1–5 years, then linked to EIBOR |
| Term / down payment | 25 years / 20% | The Central Bank’s maximum term and minimum expat deposit |
| Property tax | 0% | Dubai has no annual property tax |
| Buying costs | 7% | DLD 4%, agent 2% + VAT, mortgage registration and bank fees |
| Selling costs | 2% | Agent commission; plus an early settlement fee if you repay the mortgage |
| Maintenance / insurance | 0.7% / 0.05% | Interior upkeep (the building is covered by service charges) and contents/building cover |
| Service charges | AED 1,500/month | AED 18,000 a year, about AED 15 per sq ft on a 1,200 sq ft unit |
| Price / rent growth | 4% / 5% | Long-run expectations, deliberately below the 2022–2025 boom |
| Renter costs | AED 540/month | 5% housing fee (AED 500) plus contents insurance |
| Investment return | 6% | A diversified portfolio; there’s no UAE income tax on gains |
Check the renter cost. The housing fee alone is 5% of annual rent, which is AED 500 a month on AED 120,000. Our AED 540 default covers that fee plus about AED 40 of contents insurance; if your rent differs, set it to 5% of your annual rent Ă· 12 plus insurance.
Worked example: renting vs buying an AED 1.8 million apartment
Upfront cash for the buyer: AED 360,000 down payment plus AED 126,000 in fees = AED 486,000. The renter invests that amount instead.
Monthly mortgage instalment: AED 1,440,000 at 4.5% over 25 years costs AED 8,004 a month (standard amortisation formula). In year one, about AED 64,000 of your instalments is interest and about AED 32,000 repays principal.
Owner running costs: service charges (AED 1,500), maintenance (AED 1,050) and insurance (AED 75) add about AED 2,625. Total: roughly AED 10,630 a month to own versus AED 10,540 to rent. Unusually, the monthly costs are almost identical. The renter’s only advantage is the AED 486,000 invested on day one.
After 10 years: buying finishes roughly AED 980,000 ahead, with a break-even year of about three. The break-even rent is about AED 5,100 a month (around AED 61,000 a year) — far below the AED 120,000 a comparable unit actually rents for. The 5% rule agrees: AED 1,800,000 × 5% ÷ 12 = AED 7,500, below the AED 10,000 rent.
What flips the verdict: prices. With 2% annual growth, buying still wins by about AED 500,000. With 0% price growth and 0% rent growth, renting wins by about AED 190,000 after 10 years; with prices falling 2% a year, renting wins too. A horizon under three years also favours renting, because 7% to buy and 2% to sell take time to recover.
What does it cost to buy and sell property in Dubai?
| Cost | On AED 1.8M (mortgaged resale) | Notes |
|---|---|---|
| Dubai Land Department transfer fee | AED 72,000 (4%) | Charged on the higher of price or DLD valuation, plus admin fees |
| Agent commission | AED 36,000 + AED 1,800 VAT | Customarily 2% + 5% VAT |
| Mortgage registration | About AED 3,890 | 0.25% of the loan + AED 290 |
| Bank arrangement fee | Up to AED 14,400 + VAT | Up to 1% of the loan; often negotiable or waived |
| Valuation | About AED 2,500–3,500 | Paid to the bank’s valuer |
| Trustee office fee | About AED 4,000 + VAT | Varies by transaction type |
| Total | About AED 130,000–135,000 | Roughly 7–7.5% |
| Selling: agent commission | 2% + VAT | Plus title deed and NOC fees from the developer |
| Selling: mortgage early settlement | Up to 1% of balance or AED 10,000, whichever is lower | Central Bank cap |
Cash buyers skip the mortgage registration, arrangement and valuation fees, so their buying costs are closer to 6%.
Service charges per square foot
Owners pay annual service charges to the owners’ association for building maintenance, security, pools and common areas. Dubai’s Real Estate Regulatory Agency (RERA) approves budgets through the Mollak system and publishes a service charge index by building. Charges vary widely — from around AED 10 per sq ft in some mid-market communities to AED 25–30 or more in luxury towers. On a 1,200 sq ft apartment, AED 15 versus AED 25 per sq ft is AED 18,000 versus AED 30,000 a year. Enter the actual figure for your building divided by 12.
District cooling (chiller) fees in some buildings are billed separately and are often paid by whoever lives there. If the fee would be the same as an owner or tenant, leave it out.
What are the UAE mortgage rules?
The UAE Central Bank sets maximum loan-to-value (LTV) ratios:
| Buyer | First home up to AED 5M | First home above AED 5M | Second/investment home |
|---|---|---|---|
| Expatriate | 80% | 70% | 60% |
| UAE national | 85% | 75% | 65% |
| Off-plan (all buyers) | 50% | 50% | 50% |
Other rules worth knowing:
- Maximum term: 25 years, and lenders also cap your age at maturity, typically around 65 for salaried expats and 70 for nationals.
- Debt burden ratio: total loan repayments generally can’t exceed 50% of your monthly income.
- Fees can’t be borrowed: the 4% DLD fee and other costs must be paid in cash on top of your down payment, which is why our upfront total is 27% of the price.
- Rate structure: most expat mortgages fix for one to five years and then float at a margin over three-month EIBOR. Because the dirham is pegged to the US dollar, EIBOR tends to track US interest rates. Enter the average rate you expect over the horizon, not just the introductory fix.
There’s no income tax and no mortgage interest deduction in the UAE, so the calculator’s no-tax approach fits well.
Renting in Dubai: Ejari, cheques and rent increases
Every residential tenancy in Dubai must be registered with Ejari, the DLD’s tenancy registration system, which costs a small fee and is needed to connect DEWA. The 5% housing fee is then added to your DEWA bill in monthly instalments. Tenants usually also pay an agency fee of around 5% of annual rent when signing and a refundable security deposit of about 5%. If you’d move every year or two, add the agency fee to renter costs.
Rent increases are regulated by Dubai Decree No. 43 of 2013, using the DLD’s rental index (now the Smart Rental Index). A landlord must give 90 days’ notice before the renewal date, and the permitted increase depends on how far your current rent sits below the index average for similar units — from no increase if you’re within 10% of the average to a maximum of 20% if your rent is more than 40% below it. In practice, this slows rent growth for sitting tenants compared with new lettings.
Where the market is in late 2026: after rents rose by around 17% in 2025 according to CBRE, Dubai’s rental market cooled sharply in 2026 as new supply arrived. Cushman & Wakefield reported average rents down about 6% and sale prices down about 4% quarter-on-quarter in Q2 2026. That’s why our 4–5% growth defaults are a long-run view, and why you should test 0–2%.
Golden Visa and off-plan payment plans
Golden Visa: owning property worth at least AED 2 million can qualify you for a 10-year Golden Visa. That matters to the rent vs buy decision because it removes the link between your residency and your job. Our AED 1.8 million default sits just below the threshold. The rules on mortgaged and off-plan units have been revised; confirm the current requirements with the DLD or the Federal Authority for Identity, Citizenship, Customs and Port Security before you stretch your budget to reach AED 2 million.
Off-plan: developers sell new projects on payment plans, such as 10–20% on booking, instalments during construction and the balance on handover, sometimes with post-handover plans. The 4% DLD fee is paid upfront when the sale is registered on Oqood. Banks will lend at most 50% of the value on off-plan homes. The calculator assumes you move in immediately, so for off-plan, start the simulation at handover and remember that you’ll pay rent and instalments at the same time until then — plus the risk of delays.
How do Dubai communities, Abu Dhabi and Sharjah compare?
- Jumeirah Village Circle (JVC): lower prices and some of the highest gross yields in Dubai. Buying usually breaks even fast; watch oversupply and service charges in newer buildings.
- Dubai Marina and JBR: established, liquid rental markets with higher service charges per sq ft. Results are still favourable to buying but less so.
- Downtown Dubai: premium prices, high service charges and, in 2026, some of the sharpest rent declines. Test lower rent growth.
- Dubai Hills Estate and villa communities: lower service charges per sq ft but higher maintenance; villa rents fell sharply in Q2 2026.
- Abu Dhabi: a registration fee of around 2% instead of 4%, so set buying costs nearer 5%.
- Sharjah: lower rents attract many Dubai commuters; ownership rules for expatriates differ, so check eligibility first.
For a longer discussion of the city, read our guide to renting vs buying in Dubai.
When does renting win vs buying in Dubai?
Renting tends to win when:
- You might leave the UAE within three years — job changes and visa status make expat stays less predictable than in most countries.
- You expect prices to fall or stay flat after the 2026 cooling.
- Service charges are high relative to the rent you’d pay.
- You’re buying off-plan with a long wait to handover.
Buying tends to win when:
- You’ll stay five years or more and want stability from rent increases and landlord sales.
- The gross rental yield (annual rent Ă· price) is above about 6%, as in our default.
- You can pay 20% down and 7% fees without draining your emergency fund.
- You value a Golden Visa that isn’t tied to your employer.
For the wider maths, see how to calculate rent vs buy and the break-even point explained.
Dubai rent vs buy checklist
- Get the unit’s actual service charge from the RERA index or the seller.
- Add every fee: DLD 4%, agent 2% + VAT, mortgage registration, arrangement fee, valuation, trustee.
- Set renter costs to at least 5% of annual rent ÷ 12, plus agency fees if you’ll move.
- Add the housing fee to owner costs if you’ll be billed it as an owner-occupier.
- Use the rate you’ll pay after the fixed period, not only the teaser rate.
- Test 0% and 2% price growth, not just the default.
- Set the horizon to how long you realistically expect to stay in the UAE.
- If buying for a Golden Visa, confirm eligibility before you sign.
This tool provides general estimates, not financial advice; check fees with the DLD and your bank before committing.
Frequently asked questions
Is it better to rent or buy in Dubai in 2026?
If you expect to stay at least three to five years and can put down 20% plus about 7% in fees, buying usually beats renting in Dubai because gross rental yields of 6–7% are well above typical mortgage rates. Renting is the safer choice if your job or visa is uncertain, if you'd sell within three years, or if you expect prices to fall after the 2026 slowdown.
How much are the fees to buy a property in Dubai?
Expect roughly 7–7.5% of the price on a mortgaged resale purchase. On AED 1.8 million that's about AED 72,000 for the 4% Dubai Land Department fee, AED 37,800 for a 2% agent commission plus VAT, about AED 3,900 for mortgage registration, up to 1% of the loan as a bank arrangement fee, plus valuation and trustee fees.
How much down payment do expats need for a Dubai mortgage?
Under UAE Central Bank rules, expatriates buying a first home worth up to AED 5 million can borrow up to 80% of the value, so they need at least 20% down plus fees. Above AED 5 million the cap is 70%. UAE nationals can borrow up to 85% and 75% respectively. Second homes and off-plan purchases have lower limits.
Is the 5% housing fee included for renters?
Yes. Dubai Municipality's housing fee is 5% of the annual rent registered in Ejari, collected monthly through your DEWA bill. On AED 120,000 a year that's AED 500 a month. Owner-occupiers can also be billed a housing fee based on the estimated rental value of their home, so if you'll pay it as an owner, add it to the owner's monthly fees.
Does buying a Dubai property get me a Golden Visa?
Property worth at least AED 2 million can qualify an owner for the 10-year Golden Visa, including in many cases mortgaged and off-plan homes. Our AED 1.8 million default sits just below that line. The detailed rules on mortgages and off-plan units have changed more than once, so confirm eligibility with the DLD or ICP before buying for the visa.
How do rent cheques affect the comparison?
Dubai landlords typically ask for rent in one to four post-dated cheques. Paying in one cheque can earn a discount, but it ties up a year's rent upfront. The calculator spreads rent evenly by month, so if you get a discount for fewer cheques, enter the discounted annual rent divided by 12.
Can I use this calculator for Abu Dhabi?
Yes, with changes. Abu Dhabi charges a registration fee of around 2% of the price rather than Dubai's 4%, so lower the buying cost input to about 5%. Rents, service charges and price growth also differ by community, so replace the Dubai defaults with local figures.