In the UAE in general and in Dubai in particular, the decision of whether to buy or rent property depends on various factors, including your objectives, ability to finance, and future plans. In this post, we’ll explore the key pros and cons of both options.
There are many benefits to purchasing real estate in the UAE:
However, real estate is expensive to purchase. The down payment and the cost of other initial fees, including registration (about 4% of the property value), can pose a significant obstacle for many buyers. Property owners also have to manage and maintain their properties, which adds additional costs.
There are also advantages to renting real estate in the UAE:
However, renting has its drawbacks. Rental costs are anything but cheap in the UAE, especially in desirable areas. The cost to rent a flat in Dubai is 70,000 AED per year, a 25% increase from the year before. Additionally, rents in the UAE are generally paid a year in advance, often requiring a very large lump sum payment for many.
Furthermore, renters have no stake in the property because their rent payments do not help build equity.
Buying real estate is beneficial for people looking to settle in the UAE long-term or permanently and who are willing to invest in assets. It’s also ideal for those hoping to generate rental income and for anyone who wants to own property in the long run.
Not too sure if you want to invest a large amount of cash upfront? Don’t have a lot of cash to spend initially? Or maybe you don’t plan to stay long in the country? Then renting is for you. It’s a convenient option for those who don’t want to deal with managing property. But if you still want to buy an apartment in the UAE, contact DDA Real Estate. We will help you profitably purchase real estate in one of the most promising markets in the world.
