Tools

Rent vs Buy Calculator

UAE-specific rent vs buy analysis. Accounts for no income tax, RERA rent caps, DLD fees, service charges, Golden Visa eligibility, and Dubai's unique market dynamics.

Renting

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RERA caps increases based on the Rental Index

Buying

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AED 300,000 -- Central Bank min: 20% for first property

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Defaults to 1% of property value if left blank

Auto-calculated: 4% of purchase price

Auto-calculated: 2% of purchase price

1 yr15 yrs30 yrs
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Expected annual return if down payment is invested instead

Verdict

Buying wins after year 3

Buying builds AED 813,215 more net wealth over 10 years

Breakeven Year

Year 3

Net Wealth Difference (Yr 10)

AED 813,215

Property Equity (Yr 10)

AED 1,563,325

Opportunity Cost of Down Payment

AED 377,189

Net Wealth Over Time

Cumulative Cost Comparison

Year-by-Year Breakdown

YearRent CostBuy CostRent WealthBuy WealthProperty ValueEquity
1AED 96,000AED 200,040AED 321,300AED 201,000AED 1,575,000AED 401,040
2AED 196,800AED 310,080AED 249,711AED 196,922AED 1,653,750AED 507,002
3AED 302,640AED 420,120AED 175,127AED 198,006AED 1,736,438AED 618,125
4AED 413,772AED 530,160AED 97,438AED 204,503AED 1,823,259AED 734,663
5AED 530,461AED 640,199AED 16,535AED 216,680AED 1,914,422AED 856,879

Showing 5 of 10 years

UAE-Specific Insights

  • No income tax in the UAE means your mortgage interest is not deductible -- but your rental savings also grow tax-free.
  • RERA caps rent increases based on the Rental Index. Your assumed 5% annual increase should be compared against the RERA calculator for your area.
  • Your estimated service charge of AED 12/sqft is below the Dubai median of AED 15-25/sqft.
  • In Dubai, roughly 60% of residents rent. You are not alone if renting wins for your situation.