Should you rent or own a property in Dubai?

Should you rent or own a property in Dubai?

Tuesday 30 May 2023Wed 16 Feb
Should you rent or own a property in Dubai?

There’s no surprise Dubai’s real estate market is currently ruling and possibly isn’t going to slow down anytime soon either.

Being the city that offers a plethora of options to each and everyone, being a gateway of opportunities, a star-studded city with world-class attractions and world records - who wouldn’t want to live here and consider having their own home here. Given how many benefits foreign investors can gain from investing in Dubai - the opportunities are quite literally, endless.

So, have you been considering the move to Dubai, or are you a resident and aren’t sure on whether you should rent or own a property in Dubai?

We’re here to break it down for you - so you can make the right choice!

Flexibility and freedom

For renters: Renting a property provides flexibility, especially for those who have uncertain plans or prefer not to be tied down to a specific location. Whether its long-term rental contracts or short-term, renters always have the chance to get out of their contracts and explore. They also have the freedom to explore different neighbourhoods and easily change residences when needed, such as moving to slightly cheaper neighbourhoods if rents are rising.

For owners: Owning a property comes with the ease of mind of not having to pay rent, stability and the freedom to personalise your home. You can’t deny there’s also a sense of permanence and the opportunity to build equity over time. Owners can also easily make modifications and upgrades to the house to suit their preferences.

Financial considerations

For renters: Renting typically requires less upfront costs compared to buying a property. When it comes to renting, you are not responsible for the maintenance and repair expenses, as those are usually the landlord's responsibility.

Although, rent payments are an ongoing expense without the potential for long-term wealth accumulation.

For owners: Buying a property involves a significant financial commitment, including down payment, closing costs, and ongoing mortgage payments, which can get hectic especially if they’re panning out over 25 years.

However, homeownership can be viewed as an investment, as property values may appreciate over time. Additionally, mortgage payments contribute towards building equity, and homeowners may benefit from tax deductions and potential rental income if they choose to lease out the property. Its worth looking at a guide to mortgages and how they can help you with investments.

Maintenance and responsibilities

For renters: One of the advantages of renting is that you are generally not responsible for major maintenance and repairs, and it's important to brush up on your rights as a tenant to make sure when you’re drafting an agreement with your landlord - you’ve covered these important factors.

Landlords typically handle issues such as plumbing, electrical problems, and structural repairs. This relieves you as a tenant from the financial burden and time-consuming tasks associated with property maintenance.

For owners: As a homeowner, if you’ve placed your house on rent you will have to bear the responsibility for property maintenance and repairs, it does help considering having a property manager for your home. Get in touch with our in-house property management team!

While this provides the opportunity for customization and control over the property, it also means being prepared for unexpected expenses and investing time and effort in upkeep. As you would be a landlord essentially, you may need to budget for regular maintenance, such as landscaping, HVAC servicing, and appliance repairs, it is worth checking our home maintenance packages to see how you could get more out of paying less.

Market conditions and investment potential

For renters: If you’re not one for investments, renting can be a sensible choice in a rapidly changing real estate market. It allows flexibility to adapt to market conditions and take advantage of moving properties to a more favourable rental rate. You as a tenant can also allocate your funds towards other investments or savings.

For owners: Buying a property can be a long-term investment strategy, particularly in a market with steady appreciation. Homeownership allows you to build equity, rental income and potentially benefit from capital gains when selling the property. Dubai's real estate market has historically shown resilience and has been an attractive destination for property investments.

So, if you plan to get your hands on a strong running rental income or are influenced by the record breaking sales in the city, investing is worth giving a thought into. As of late, mortgages are proven to be cheaper than rents.

Made a decision yet?

If you’re in two minds or aren’t sure of renting or investing - get in touch with our in-house experts who can guide you on investments, lettings, mortgages and more!

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