Rent vs Buy Calculator (Dubai)
Dubai property calculator for expats • Includes visa dependency risk
Compare renting vs buying using Dubai property costs, service charges, and opportunity cost
Learn more about rent vs buy in Dubai
Why Most Expats Get This Decision Wrong
Most people compare monthly rent vs mortgage payment. That's the wrong comparison.
The real question: What happens to your wealth after 5 years?
- • Renting: Money stays liquid, investable, accessible globally
- • Buying: Money trapped in equity, only accessible by selling
This calculator shows you which path builds more usable wealth—not just theoretical net worth.
Critical Dubai Risk: Visa Dependency
Property ownership in Dubai requires a valid residency visa. Job loss typically means 30-60 day exit window, creating forced sale pressure and potential losses.
- Approximately 15% of expats face unexpected job changes during typical stay
- Forced sales often result in 5-10% below market value
- Consider your industry stability and backup visa options
How this rent vs buy calculator compares long-term net worth
Compares renting vs buying by tracking net financial position over time. Shows complete wealth-building picture.
Renting: Tracks rent payments plus investment growth of down payment savings and monthly cash flow difference. In Dubai, rental brokerage is often paid upfront and reduces early-year investable capital.
Buying: Tracks mortgage payments, equity buildup, and ownership costs (service charges). Buying includes one-time upfront costs (DLD transfer fees, mortgage registration, and trustee fees), which reduce investable capital.
In Dubai, both renting and buying involve upfront transaction costs, which reduce initial investable capital. Important: Brokerage affects starting net worth, not monthly cash flow.
Opportunity cost of down payment often determines the outcome. In Dubai, large down payments and service charges significantly affect opportunity cost. Break-even analysis ignores net worth accumulation.
When renting builds more wealth than buying — and vice versa
Renting Often Wins
- High property prices relative to rent
- Short time horizon (under 5-7 years)
- Higher expected investment returns (e.g. global equity funds)
- Low property appreciation expected
- High service charges (AED 20,000+ per year)
- Uncertain timeline in Dubai
Buying Often Wins
- Long time horizon (7+ years)
- Very long holding periods (10–20+ years)
- Stable property appreciation (2-4%)
- Lower investment returns expected
- Rising rental costs
- Low service charges relative to property value
Typical Dubai tenure by industry — calibrate your timeline
Understanding typical tenure patterns helps calibrate your realistic timeline in Dubai:
Shorter Tenure (3-5 years)
- • Technology & Startups - High mobility, remote work options
- • Consulting - Project-based assignments, frequent moves
- • Oil & Gas - Rotational schedules, market volatility
- • Hospitality - Seasonal contracts, career progression
Longer Tenure (7+ years)
- • Banking & Finance - Regional hubs, stable positions
- • Government/Semi-Gov - Long-term contracts, stability
- • Education - School contracts, family stability
- • Healthcare - Specialized roles, licensing requirements
Reality Check: About 15% of expats face unexpected job changes during their planned stay.
- • Consider your industry's stability in current economic climate
- • Factor in company restructuring risks
- • Plan for visa dependency if employment changes
Frequently Asked Questions - Dubai Property Decisions
Q: What if I lose my job in Dubai?
Critical for expats: You typically have 30-60 days to find new employment or leave Dubai. Property owners face forced sale pressure during this window. Maintain 6+ months emergency fund separate from down payment. Consider job market conditions in your industry.
Q: Are service charges really that expensive?
Service charges vary significantly: AED 8K-15K for older buildings, AED 15K-25K for newer developments, AED 25K-50K+ for luxury properties with extensive amenities. Always verify actual charges before buying. They typically increase 2-3% annually.
Q: What about property appreciation in Dubai?
Dubai property market is cyclical and volatile. Long-term average (10+ years) is approximately 2-4% annually, but periods of rapid growth (10%+) and decline (-20%) occur. Conservative estimates (2-3%) are often more reliable for financial planning than optimistic projections.
Q: Should I rent out my property when I leave?
Consider: 1-2 months vacancy annually, 5-7% property management fees, maintenance responsibilities, visa requirements for property ownership. Many expats find selling simpler than remote landlord management. Our calculator focuses on "live in or rent it out" decision.
Q: How accurate are mortgage assumptions?
Current Dubai mortgage rates: 4.5-6% for expats depending on bank, nationality, income level, and employer. 25% down payment minimum for expats, 15% for UAE nationals. 25-year maximum term for expats. Always get pre-approval from multiple banks before making decisions.
Important assumptions & limitations
Small changes in assumptions create different outcomes. 1% difference in appreciation or returns can change results significantly.
- • Mortgage availability depends on employer, nationality, and visa status
- • Includes upfront purchase costs, excludes moving expenses
- • Simplified model with adjustable key assumptions
- • Results depend on input accuracy
Shows consequences based on inputs. Not investment advice.