Dubai Rent vs Buy Calculator 2026
Compare the total cost of renting versus buying a property in Dubai over a 1 to 25 year horizon.
Last updated: May 2026
The Verdict After 10 Years
Based on a 5% annual property appreciation and 5% rent inflation.
Includes upfront costs (DLD 4%, Agent 2%) and ongoing maintenance.
Is it Better to Rent or Buy in Dubai?
Dubai's real estate market is unique due to its high rental yields and the absence of property taxes. However, buying a property involves significant upfront costs, including the 4% DLD fee, agent commissions, and mortgage registration fees.
Ongoing costs such as Service Charges (calculated per square foot) can also impact the profitability of owning. Our calculator helps you compare these costs against rising rents to find your break-even year.
How to use this calculator
- 1Enter Property Price — Input the current market value of the property you are considering.
- 2Equivalent Rent — Input what it would cost to rent a similar property annually.
- 3Input Service Charges — Enter the AED per square foot rate (Check the Dubai REST app for accurate community rates).
- 4Adjust Horizon — Slide to see how many years you plan to stay; buying usually wins after year 5 or 7.
Formula & example
Buy Net Worth = (Property Value × Appreciation) - (Upfront + Mortgage + Service Charges)
Example: 1.5M AED Apartment vs 100k AED Rent.
- Buying Upfront: ~110k AED (Fees + 20% Down)
- Year 1 Buying Cost (SC + Mortgage): ~95k AED
- Year 1 Renting Cost: 105k AED (Incl. fees)
- Result: Buying often becomes cheaper after 5-6 years due to equity build-up.
Benefits
Hidden Cost Analysis
Includes DLD fees and registration costs that most people forget.
Service Charge Impact
See how high maintenance fees in areas like Downtown can affect your ROI.
Investment Planning
Determine if it's better to invest your down payment in stocks or real estate.
Use cases
Expats Settling In
If you plan to stay in Dubai for 3+ years, buying might save you 30-40% over rent.
Real Estate Investors
Calculate the net yield after all government and community expenses.
Mortgage vs Cash
Adjust interest rates to see the impact of bank financing on your total cost.
Frequently asked questions
What are the upfront costs of buying in Dubai?+
Typically 6-7% of the property price: 4% DLD fee, 2% Agent fee, and ~0.25% Mortgage registration fee.
How are service charges calculated?+
Service charges are based on the square footage of your property and vary by building and community (typically 12 to 30 AED per sqft).
Can I get a 100% mortgage in Dubai?+
No, the UAE Central Bank requires a minimum 20% down payment for expats (25% for properties above 5M AED).