Rent vs Buy
Rent today or own · all amounts in AED
ASSUMPTIONS
Deposit 20% · Service ~AED 21,600/yr (~1.2% of price)
Opp. cost 5% · Growth +4.8%/yr
Rent vs Buy Calculator — Dubai & UAE
Still renting? See what another year costs you.
Enter your rent and the home price — we find the shortest whole years to own it while paying about the same as today’s rent, plus cash at completion.
What does it cost to buy — beyond the deposit?
Cash at completion matters
Deposit alone understates what you need on transfer day. We surface DLD, agency and bank fees so you do not get surprised at the trustee office.
Equity changes the story
Rent is spent; a mortgage builds ownership. Comparing only monthly bills hides the asset you keep at the end of the horizon.
Then check what you can borrow
If buying wins on paper, run the mortgage affordability calculator next — DBR, LTV and live bank rates — or request MOVA pre-approval.
Model growth (rent & price)4.8%
Observed New 1 B/R YoY14.6%, 1.3%, 3.7% YTD
Catalog rate3.75%
Updated2026-08-05
Where does buying beat renting fastest in Dubai?
UAE Resident · 20% deposit · 3.75% · 1 B/R · New rents only · n ≥ 30 · service ~1.2% of price · model growth 4.8%
Median New annual rent vs median ready sale price (36 months). Ownership years use the same engine as the calculator above. Click a row to load those figures into the calculator. Yields are gross (before service charges).
| Area | 1 B/R median rent | 1 B/R median price | Gross yield | Years to own at rent |
|---|---|---|---|---|
| Jebel Ali | AED 70,000 · n=2,448 | AED 750,880 · n=2,059 | 9.3% | 11 years |
| Wadi Al Safa 5 | AED 58,000 · n=958 | AED 615,000 · n=1,209 | 9.4% | 11 years |
| Jumeirah Village Circle (JVC) | AED 75,000 · n=7,394 | AED 900,000 · n=6,891 | 8.3% | 12 years |
| Jumeirah Village Triangle (JVT) | AED 76,000 · n=675 | AED 900,000 · n=479 | 8.4% | 12 years |
| Business Bay | AED 98,000 · n=3,406 | AED 1,325,000 · n=3,917 | 7.4% | 14 years |
| DAMAC Hills | AED 97,500 · n=1,126 | AED 1,325,000 · n=1,432 | 7.4% | 14 years |
| Jumeirah Lakes Towers (JLT) | AED 87,000 · n=1,659 | AED 1,135,000 · n=1,919 | 7.7% | 14 years |
| Dubai Marina | AED 105,000 · n=3,304 | AED 1,575,000 · n=3,820 | 6.7% | 16 years |
| Downtown Dubai | AED 120,000 · n=1,817 | AED 2,000,000 · n=2,614 | 6% | 19 years |
How long until buying beats renting?
Two clocks: break-even is when owning’s economic net cost (fees, interest, service, opportunity cost; principal credited as equity; no price growth) falls below renting. Years to own (table above) is only when the instalment ≤ today’s rent — usually much longer.
| Property price | Annual rent | Break-even | Area |
|---|---|---|---|
| AED 750,880 | AED 70,000 | 1.6 years | Jebel Ali |
| AED 615,000 | AED 58,000 | 1.6 years | Wadi Al Safa 5 |
| AED 900,000 | AED 75,000 | 2.0 years | Jumeirah Village Circle (JVC) |
| AED 900,000 | AED 76,000 | 2.0 years | Jumeirah Village Triangle (JVT) |
| AED 1,135,000 | AED 87,000 | 2.4 years | Jumeirah Lakes Towers (JLT) |
| AED 1,325,000 | AED 98,000 | 2.7 years | Business Bay |
| AED 1,325,000 | AED 97,500 | 2.7 years | DAMAC Hills |
| AED 1,575,000 | AED 105,000 | 3.6 years | Dubai Marina |
| AED 2,000,000 | AED 120,000 | 5.0 years | Downtown Dubai |
How fast are Dubai rents actually rising?
Median annual rent on New 1 B/R contracts in the areas above: 2023 → 26.9% · 2024 → 14.6% · 2025 → 1.3% · 2026 YTD → 3.7%
Our model uses 4.8% for both rent growth and (in the calculator) price growth — shown against observed YoY so the assumption is testable. The break-even table turns price growth off.
What would buying in 2023 have been worth today?
Area medians — not single buildings. These cards use 2023 calendar vs trailing 12-month ready-sale medians (not the 36-month median in the area table above), so “today” can differ from that table. Net after carrying = equity − (mortgage + service). Past performance does not guarantee future results.
Jumeirah Village Circle (JVC)
1 B/R medians — indicative path if you had bought in 2023.
| 2023 median n=1,810 | AED 729,558 |
|---|---|
| Today’s median n=1,947 | AED 1,020,000 |
| Equity if bought | AED 481,120 |
| Carrying cost (3y) | −AED 134,290 |
| Net after carrying | AED 346,830 |
| Rent paid (3y New) | AED 225,000 |
| Net vs rent paid | AED 121,830 |
Business Bay
1 B/R medians — indicative path if you had bought in 2023.
| 2023 median n=1,511 | AED 1,130,000 |
|---|---|
| Today’s median n=930 | AED 1,445,000 |
| Equity if bought | AED 610,338 |
| Carrying cost (3y) | −AED 207,999 |
| Net after carrying | AED 402,339 |
| Rent paid (3y New) | AED 294,000 |
| Net vs rent paid | AED 108,339 |
Dubai Marina
1 B/R medians — indicative path if you had bought in 2023.
| 2023 median n=1,648 | AED 1,350,000 |
|---|---|
| Today’s median n=883 | AED 1,775,000 |
| Equity if bought | AED 777,837 |
| Carrying cost (3y) | −AED 248,494 |
| Net after carrying | AED 529,343 |
| Rent paid (3y New) | AED 315,000 |
| Net vs rent paid | AED 214,343 |
Past performance does not guarantee future results. Medians are indicative; final mortgage terms depend on bank assessment.
Frequently asked questions
Is it cheaper to rent or buy in Dubai in 2026?
It depends on the area. On New 1 B/R contracts, median yields in our table are often around 6–9%, with years-to-own at today’s rent typically in the low-to-mid teens for popular communities — see the area table above for live medians.
How long until buying beats renting in Dubai?
Break-even is economic net cost (fees, interest, service, opportunity cost) with principal credited as equity and no assumed price growth. Years to own is the mortgage term where the instalment matches today’s rent — a different question.
What is the gross rental yield in Dubai?
We publish area-level gross yield as median New annual rent ÷ median ready sale price for 1 B/R — before service charges. Source: DLD silver sales and Ejari New contracts, not a single marketed listing.
How much deposit do I need to buy in Dubai?
Indicative LTV: about 20% down for UAE residents on a typical ready first home, and about 40% for non-residents. On a AED 1,000,000 home that is AED 200,000 vs AED 400,000 — plus fees at completion.
Is buying always better in Dubai?
No. Short stays, high prices relative to rent, or large upfront cash needs can favour renting. Stress-test your case in the calculator.
What buying costs are included?
Down payment, indicative mortgage payments, bank valuation, DLD transfer and mortgage registration, trustee, agency with VAT, and MOVA advisory — grouped so cash at completion is visible.
Should I rent or buy in Dubai?
Use the calculator and area table for an indicative view, then speak to a MOVA advisor — buy vs rent depends on your horizon, cash and residency.
Are results a mortgage offer?
No — figures are indicative. Final approval depends on the bank’s credit assessment, valuation and your full profile.