Rent vs Buy Calculator (UAE)
See whether renting or buying costs less over the years you'd actually stay. Accounts for DLD fees, mortgage interest, property appreciation, and the money you'd otherwise invest.
The property and rent
Mortgage terms
Forecasts
How to use
- 1
Enter the price of the property you're thinking about buying. Use real Dubai or Abu Dhabi listings as a reference — don't make up a number.
- 2
Enter what you'd pay per year to rent that exact same property (or one very similar in the same area). Your current rent works if you're considering buying where you live now.
- 3
Tell the calculator how many years you'll realistically stay. This is the single most important input. Less than 5 years and renting almost always wins. Over 7 years and buying tends to come out ahead.
- 4
Set your down payment percentage. UAE Central Bank rules require 20% minimum for resident expats buying their first home up to AED 5M.
- 5
Enter the mortgage rate you've been quoted, or use 4.5% as a 2026 baseline. Pick a tenure (5–25 years).
- 6
Now the predictions. Annual rent increase — RERA's cap moves this between 0% and 20%, but most areas average around 5%. Property appreciation — Dubai has averaged 5–7% over the long term but with big swings. Investment return — what your down payment money could earn elsewhere.
- 7
The result shows total cost of renting vs total NET cost of buying (after subtracting the equity you'll have built). It also tells you the year buying overtakes renting.
- 8
Test sensitivity. Try the same numbers with 3% appreciation. Then 8%. If buying wins in both, it's a strong yes. If it flips, your decision depends on whether the market goes up or sideways.
Frequently asked questions
Because your down payment money is real money. If you put AED 360,000 into a Dubai property, that's AED 360,000 you can't put into stocks, bonds, or a business. If you'd otherwise earn 6% on that money over 10 years, you'd have AED 644,000. That foregone return is the opportunity cost of buying. Without it, the math unfairly favours buying.
The 20-year average is about 5% per year, but with very volatile swings. From 2008-2010 prices dropped 50%. From 2020-2024 they rose 60-90% in popular areas. Pick a conservative figure (3%) as your base case and check what the result looks like with 5% and 8% to see how sensitive your decision is.
Dubai service charges vary wildly: AED 8–35 per sqft per year depending on building, community, and amenities. The calculator estimates 1.2% of property value as an annual average — this is roughly right for most apartment buildings in mid-tier communities. For high-amenity Marina/Downtown buildings, the real figure is often 1.5–2%. For villa communities with shared facilities (Arabian Ranches, Jumeirah Park), it can be lower at 0.6–1%.
Yes — the calculator already does. UAE buying costs total about 7–8% of the property price on top of the down payment: 4% DLD transfer, 2% agent commission, 0.25% mortgage registration, 1% bank processing, AED 3,000 valuation. For a AED 2M property, that's an extra AED 140,000–160,000 in cash at closing.
The calculator handles this. It shows your equity (what you've paid off + appreciation) at year N. When you sell, you take out 2% selling commission and there are usually some exit DLD fees. The 'net cost of buying' figure already subtracts your final equity from your gross spend.
Three conditions usually point to buy: (1) you'll stay at least 7 years, (2) your monthly mortgage + service charge is less than 1.2× rent for the same place, (3) you believe property will hold or rise in value over your holding period. Miss any one and renting often wins on the math.
If you'll move within 3-5 years, renting almost always wins. If your job is unstable (visa-tied), renting wins. If rents in your area are unusually low compared to prices (rental yield under 4%), renting wins. If you'd otherwise invest the down payment at 8%+ returns, renting often wins.
Indirectly. Mortgage life insurance is typically bundled into the monthly EMI by UAE banks (you'll see it on your offer letter). The calculator's EMI figure should match what your bank quotes — that already includes the life cover. Property insurance is separately accounted for at 0.04% of value per year.
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Source: UAE Central Bank mortgage rules, Dubai Land Department fees, RERA rental cap framework · Last verified 2026-06. Verify on CBUAE Rulebook. This tool provides estimates only and is not legal, tax or financial advice. Always verify your specific situation with the relevant UAE authority or a licensed advisor before taking action.