Should you rent or buy? To help you answer this big question, our calculator takes the most important costs associated with buying a property and compares it to your equivalent rental costs. Try it out!
Buy vs Rent Methodology
Our buy vs. rent calculator methodology compares the total cost of renting with the total cost of buying by looking at much more than a monthly rent or mortgage payment.
To calculate the cost of renting, we begin with the monthly rent, one-time agent commission based on the total yearly rent amount and yearly EJARI fees. This calculation does not include any maintenance fees you may incur as a tenant.
To calculate the cost of buying, we begin with the purchase price and calculate the initial down payment and various fees involved; the monthly mortgage payment agent commission, Dubai Land Department registration fees, Registration Trustee fees, property valuation fee, mortgage processing and registration fees. These costs are pre-defined and do not include service fees, home maintenance fees or utility fees. This calculator provides baseline assumptions based on your input.
Saving for a down payment in the UAE is one of the biggest challenges of buying. This is probably one of the reasons why 70% of the expats rent. Per UAE Central Bank Guidelines, the maximum loan to value (LTV) for expatriates is 75%, providing it is a first mortgage and the property is valued under Dh5 million. For purchases higher than Dh5 million, the LTV reduces to 65 per cent and 60 per cent for all subsequent purchases.