Buy or rent property in Dubai?
It's a question playing on the minds of several expatriates. We have embarked to find out whether it makes more sense to purchase a property here rather than pay off someone else's mortgage by way of renting.
The common consensus we arrived at is that if you are living in Dubai short term, it is better to rent a property, whereas if you are here for the long term, it is worthwhile to purchase a home. However, this does come with high upfront costs such as the mortgage down payment (25 per cent of the property price if it is your first home in the UAE), Dubai Land Department fee, broker's commission, mortgage processing fee, mortgage valuation fee and other admin overheads.
Here are some reasons why we should buy instead of renting.
1. "I would advise people to purchase property in the UAE only if they have absolute job certainty. If you lose your job, you may struggle to meet the financial obligations associated with property ownership. I would consider buying property here only if prices drop by 25 to 30 per cent,
- Toby Young
2. "If you think you will be here for 12 months or less, then consider renting as the transfer costs involved in buying may become too much to consider. If you are planning to stay in Dubai for a number of years, then it's better to purchase a property," says ...
- Myles Bush, CEO of PH Real Estate.
3. "More expats are also likely to transfer from the rental market to own their properties, particularly as developers are offering flexible payment terms to sell properties in a more competitive market," says ..
- Craig Plumb, head of research, JLL Men