Rent vs Buy Calculator UAE

The breakdown includes: down payment, mortgage interest rate, property appreciation, annual rent increases, maintenance costs, closing costs (e.g., transfer fee, agent commission), and the net sale price after loan repayment and agent fees.

A fixed rate stays the same throughout the loan term, giving you predictable monthly payments. A variable rate can change based on market conditions (e.g., central bank rate), which may lead to lower initial payments but introduces uncertainty over time.

The principal is the original sum of money you borrow from a lender. It does not include interest or fees. Each mortgage payment reduces the principal (amortisation) until the loan is fully repaid.

Service charges (community fees) are set by the developer or owners’ association and are typically based on the property’s size (per sq. ft.) and the amenities provided. They cover maintenance, security, and common area upkeep. The Dubai Land Department regulates these fees to ensure transparency.

For expatriates (non‑residents), most UAE banks require a minimum down payment of 50% for a mortgage. Residents (with a valid UAE residence visa) can usually get a mortgage with 20% down payment. UAE nationals may qualify for special programmes with even lower down payments.

Yes. Typical additional costs include: Dubai Land Department transfer fee (4% of property price), agent commission (2%), valuation fee (approx. 2,500‑3,500 AED), mortgage registration fee (0.25% of loan amount), and annual maintenance/service charges. This simplified calculator models only the costs listed in its assumptions; budget for the additional fees separately.

Appreciation increases the future value of the property, which can make buying more attractive. In our calculator, we assume a conservative 5% annual appreciation. If the market performs better, buying becomes even more favourable. Conversely, if prices stagnate, renting might be better in the short term.

Mortgage rates for residents usually range between 3.99% and 5.5% (fixed for the first 1‑5 years) and then switch to a variable rate (often 1‑2% above the Emirates Interbank Offered Rate, EIBOR). Non‑residents may pay slightly higher rates. Our calculator uses a blended rate of 4.5% for illustration.

Yes, you can sell at any time. The proceeds from the sale will first be used to repay the outstanding loan balance. Any remaining amount (after paying agent fees and penalties, if any) is yours. Some banks charge an early settlement fee (usually 1% of the outstanding amount) if you sell within the first few years.