Renting Vs Owning A Property In Dubai- Best Factors To Consider in 2022

Home is where the heart is, this holds for each one of us but have you ever considered how owning or renting a property in Dubai can influence your finances? What is the most suitable decision to make depends on several factors like market conditions, demand, inflation, savings, investments, one’s capacity to avail of a loan, etc.

Millennials were the most active buyer segment of 2020. About 74% of them preferred to rent the property over purchasing for a couple of reasons like less commitment, low maintenance and budget preferences. There are a lot of properties in Dubai for rent or sale, in its burgeoning real estate market you have the liberty to rent or buy an apartment in Dubai which will give you the luxury that you seek, at a price you cannot refuse.

Why Purchasing can be good?

Financial Security

Once you buy a property in Dubai it adds value to your finances and the real estate sector never goes out of business for the simple reason that is, need.


On purchasing a property, you can be assured of your stay in the property for an indefinite period or as long as you want so you do not have to worry to relocate when your rental agreement expires.

Additional income

Buying a property in Dubai is a good asset which can in turn be rented out to a tenant allowing you to earn an extra income without having to work for it.


Buying allows you to customize your living space as per your wishes which is not the case when you rent a property.

Why can renting be good?

Low capital

Renting a property in Dubai allows you to invest your funds in diverse regions of the economy as you don’t park all your money in one property.

Convenience & Flexibility

It allows you the freedom to move to new locations based on the location of your workplace or preferences without having to shell out a lot of money.

Could be sponsored

In some corporates, employees are entitled to rental housing income which in a way makes their rental expenditure nil as the company they work for bears its cost.

Factors to consider before deciding

Both renting as well as purchasing a property could be good options that greatly depend on many factors. Here are certain points you must consider before buying or renting a property in Dubai:

  • Property in Dubai is expected to become more affordable with a 5-8% decline in property prices to stabilize the oversupply created due to the pandemic induced economic slowdown around the globe. If you intend to make Dubai your home, buying a property is the better option as the number of funds that you spend in paying for the rent can be utilized to create an asset over a period of time.
  • Market conditions make an important factor in how one spends their savings. The real estate market works in favour of the investor/ buyer in terms of a good return on investment (ROI). This is a conducive time to invest as property prices have lowered for a short period.
  • Evaluating your savings, expenses, opportunity cost and upfront charges like broker fee, property registration fee, and DLD (Dubai Land Development) transfer fee among others will help you to make the wise decision to either buy or rent a property.
  • In today’s fast-paced economy, when share prices fluctuate now and then, the crypto market appears to be an enticing option, investing in property is the most secure way of utilizing your savings.
  • Buying does make sense in Dubai for its affordability, high ROI, great standard of living, stable economy, diversity and much more.

“According to DLD, Dubai has recorded the best October in the past 8 years as the real estate sector attracted a whopping Dh.13.12 billion in investments spread over 5,352 deals. A most recent survey involving property analysts forecasts Dubai house prices to rise 3.0% this year and 2.5% in 2022 compared with 1.1% and 2.8% compared to three months ago.” The realty sector in Dubai is affordable, and luxurious and records a steady rise in prices ensuring good ROI.

Buying a property may seem like a burden on your finances in the initial days but with sustainable finance plans and the right support, it will become an asset that you can count on for life. With liberal visa policies, even non-residents are eligible to buy property in Dubai. If your financial condition is not ripe for making an outright purchase, renting also makes a good option.

While renting a property in Dubai

  • You are required to pay a refundable security deposit equivalent to 5% of the yearly rent.
  • Agency fee or the share of the money that your real estate agent takes varies from 2-5% of the annual rent.
  • An Ejari fee of AED 220 is levied by Dubai Land Department’s Real Estate Regulatory Agency (RERA) for registration purposes.
  • There are separate charges to be paid to Dubai Electricity & Water Authority (DEWA) for setting up water and electricity in your apartment or villa that range from AED 2-4k which is again fully refundable.

Renting an apartment first is always a good way to experience the location and amenities around the place and if you like the property, purchasing it is a step in the right direction.

While buying a property in Dubai

  • Buying a property comes with charges like a 4% transfer fee and an AED 540 administrative fee.
  • Estate agency fees that are about 2% to 5% of the property’s price.
  • If you require a mortgage- a mortgage arrangement fee of around 1% of the loan amount apart from a property valuation fee between AED 2000 and AED 5000 is charged by the bank you choose alongside a mortgage registration fee of 0.25% plus AED 290 paid to the Dubai Land Department.
  • · For the legal work, a licensed conveyancer may cost you approximately AED 6,000 to AED 10,000 (Conveyancing fees)

With due consideration to such factors, your ownership pattern must be determined by your choices, finances, personal goals and lifestyle. At clematis, our property agents assess all such parameters and bring out the best option for you.

Planning to move to Dubai? Here’s all you need to know before moving to Dubai.

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