Should you rent or buy in Dubai? Enter your numbers below to see the break-even year, total cost comparison, and which option builds more wealth over time.
Recommendation
BUY
Buying breaks even in ~1 years
Transaction Costs
AED 95,700
DLD + Agency + Trustee
Monthly Mortgage
AED 12,070
vs AED 8,333 rent
Property Value at Exit
AED 2,443,342
5% annual appreciation
Total Rent Paid
AED 1,257,739
Over 10 years (5% annual increase)
Year-by-Year Comparison
| Year | Rent Cost (Cum.) | Buy Cost (Cum.) | Equity |
|---|---|---|---|
| 1 | AED 99,996 | AED 629,044 | AED 562,500 |
| 2 | AED 204,992 | AED 787,388 | AED 753,750 |
| 3 | AED 315,237 | AED 945,731 | AED 948,938 |
| 4 | AED 430,995 | AED 1,104,075 | AED 1,148,259 |
| 5 | AED 552,541 | AED 1,262,419 | AED 1,351,922 |
| 6 | AED 680,164 | AED 1,420,763 | AED 1,560,143 |
| 7 | AED 814,168 | AED 1,579,107 | AED 1,773,151 |
| 8 | AED 954,873 | AED 1,737,450 | AED 1,991,183 |
| 9 | AED 1,102,612 | AED 1,895,794 | AED 2,214,492 |
| 10 | AED 1,257,739 | AED 2,054,138 | AED 2,443,342 |
JVC
Buy: AED 850K
Rent: AED 5,400/mo
Break-even: 2.5 yrs
Strong Buy
Business Bay
Buy: AED 1.6M
Rent: AED 9,200/mo
Break-even: 3.8 yrs
Buy
Palm Jumeirah
Buy: AED 5.5M
Rent: AED 26,000/mo
Break-even: 7+ yrs
Rent
Dubai's zero income tax, zero capital gains tax, and zero property tax create a uniquely favorable environment for property ownership. But transaction costs — particularly the 4% DLD transfer fee — mean buying only makes sense if you're staying long enough to break even.
In mid-market areas like JVC and Dubai South, the break-even point is typically 2.5–3 years. In premium areas like Downtown, it stretches to 4–5 years due to higher service charges and lower yield-to-price ratios.
Use our Investment Simulator to model specific scenarios, or explore the 2026 Market Forecast for the latest price and yield projections.
Every situation is different — budget, visa status, and time horizon all matter. Talk to Sikandar for a tailored recommendation.