UAE Rent vs Buy

Should you rent or buy in the UAE?

Factor in UAE-specific transaction costs (DLD 4%, agency 2%, mortgage registration), rent inflation, and property appreciation to find your true breakeven year.

AED 2,500,000
AED 500,000
4.25%
25 yrs
AED 11,000
5%
4%
10 yrs
Net Savings from Buying
AED 1,670,461

Buying breaks even with renting in year 2.

Upfront Cash (Buy)AED 700,000
Total Rent Paid (10y)AED 1,660,282
Net Cost of BuyingAED -10,180
Equity BuiltAED 2,260,351

Costs included in this model

  • Upfront: 20% down payment + ~8% in DLD, agency, registration, valuation and processing fees.
  • Ongoing buy: monthly EMI + 1% of price per year for maintenance and service charges.
  • Equity: property value (appreciated annually) minus outstanding mortgage balance.
  • Net buy cost subtracts equity — renting builds none.