Buy vs Rent Calculator — Dubai
Compare the total cost of buying vs renting any property in Dubai over your holding period. Includes mortgage, service charges, transaction fees, property appreciation, rent growth, and the opportunity cost of your down payment.
Compare scenarios
Verdict over 7 years
Buying wins by AED 509,666
Buy net cost: AED 232,578 • Rent net cost: AED 742,244
Buy scenario
- Upfront cost (down payment + fees)−AED 800,250
- EMI × 84 months−AED 919,812
- Service charges × 7y−AED 112,000
- Sale price (Y7)+AED 3,289,829
- Less: exit fees (4%)−AED 131,593
- Less: remaining mortgage−AED 1,558,752
- Net buy costAED 232,578
Rent scenario
- Total rent (with 4%/yr growth)−AED 1,137,354
- Setup costs (5% commission + Ejari)−AED 7,920
- Cash invested instead of down paymentAED 800,250
- Investment growth at 6%/yr+AED 403,030
- Net rent costAED 742,244
Buy vs Rent — The Honest Math
Most buy-vs-rent calculators ignore opportunity cost — the return your down payment cash would earn if invested instead. This calculator includes it. If you can earn 6% on your cash in the market, that's a meaningful drag on the buy case that simple EMI-vs-rent comparisons miss.
For Downtown Dubai apartments held 7+ years at typical inputs (4% appreciation, 4% rent growth, 6% investment return), buying typically wins by AED 150-500k — driven by mortgage principal accumulation and property appreciation outpacing rent + investment gains.
Below 5 years, transaction costs dominate. Entry costs are roughly 6% (DLD 4% + agent 2%) and exit is another 4%. That's 10% of property value gone to fees regardless of how the mortgage amortises — rent typically wins on short holding periods.
The biggest sensitivity is appreciation rate. At 6%+ appreciation, buy wins handily even at 5-year horizons. At 0-2% appreciation, rent often wins at 10-year horizons.
Frequently Asked Questions
For holding periods of 7+ years and standard 25% down payment, buying typically wins by AED 200-500k on a 2-3 BHK Downtown property — driven by mortgage principal accumulation and property appreciation. Below 5 years, transaction costs (4% DLD + 4% exit fee) usually flip the answer to rent.