Traditionally, the expat population have rented rather than bought here, while saving money to buy a property in their home country. However, we’ve seen an uptick in first-time buyers in the last year.
Since last year, we started to see more activity reflected in demand data and buying trends where many end-users and first-time homebuyers are getting on the property ladder,” said Lynnette Abad, Director of Research and Data at Property Finder.
In a recent Property Finder survey on buying property, 50% of homeowners who purchased in the last 6 months did so because they believed buying was financially smarter than renting and 56% purchased because they plan to stay in Dubai for more than 3 years.
In fact, a big deciding factor for first-time buyers is the length of time they plan to stay here. For long-term residents, the cost of renting over time is likely to surpass what you would spend if you bought the same property. Purchasing a property will allow you to invest in an asset rather than paying rent year-on-year and paying off someone else’s mortgage. If you do leave the country, you have the option to rent out the property and earn passive income once the mortgage is paid off. With some of the highest rental yields in the world, this can be a great opportunity for your long-term financial goals. Recent government initiatives, continued population growth and the introduction of more quality and affordable residential projects are additional factors that will push more long-term tenants to consider investing in the country.
If you are indeed planning to settle in the UAE for the long term, buying may be the better option for you. Our Rent vs Buy Calculator can help you decide which is more cost effective over time.
Rent vs Buy Calculator
The buying process, fees, and total cost over the time you plan to live here can be hard to understand and calculate for first-time buyers in the UAE. Property Finder has created a Rent vs Buy Calculator to assist you in this process. A key feature of the calculator is that it allows you to enter and change the number of years you plan to live in your property. You will then be able to see when it becomes more cost-effective for you to buy and live in your property than to pay rent over the same period.