Rent vs. Buy Calculator in Dubai (2026)
Is it better to rent or buy a home in Dubai? See the break-even point and total cost comparison over your chosen time horizon.
Property Price
AED 1,425,000
75m² · AED 19,000/m²
Down Payment
AED 285,000
20% of purchase price
Monthly Mortgage
AED 6,144
4.2% rate · 25yr term
Monthly Rent
AED 8,500
City centre
📅 Break-even point: Year 1
Buying becomes cheaper than renting after 1 year in Dubai, once property appreciation and equity are factored in.
After 10 years: Buying saves approximately AED 2,058,209 vs renting.
Cumulative Cost Comparison — Dubai
Net costs after accounting for property appreciation and investment returns on down payment.
| Year | Net Buy Cost | Net Rent Cost | Property Value | Verdict |
|---|---|---|---|---|
| 1 | AED 35,977 | AED 75,068 | AED 1,553,250 | 🟢 Buy |
| 2 | -AED 40,468 | AED 151,310 | AED 1,693,043 | 🟢 Buy |
| 3 | -AED 130,670 | AED 228,687 | AED 1,845,416 | 🟢 Buy |
| 4 | -AED 235,812 | AED 307,151 | AED 2,011,504 | 🟢 Buy |
| 5 | -AED 357,183 | AED 386,650 | AED 2,192,539 | 🟢 Buy |
| 6 | -AED 496,180 | AED 467,122 | AED 2,389,868 | 🟢 Buy |
| 7 | -AED 654,329 | AED 548,497 | AED 2,604,956 | 🟢 Buy |
| 8 | -AED 833,286 | AED 630,696 | AED 2,839,402 | 🟢 Buy |
| 9 | -AED 1,034,857 | AED 713,632 | AED 3,094,948 | 🟢 Buy |
| 10 | -AED 1,261,005 | AED 797,204 | AED 3,373,493 | 🟢 Buy |
Monthly Cost Breakdown
Buying
Mortgage: AED 6,144
Maintenance: AED 1,425
Property Tax: AED 0
Total Monthly: AED 7,569
Does not include down payment of AED 285,000
Renting
Monthly Rent: AED 8,500
Annual Increase: +3% assumed
Opportunity Gain: Down payment invested at 7%/yr
Total Monthly: AED 8,500
Rent increases 3%/yr in projection
Can you afford to buy in Dubai?
Monthly net income: AED 6,667
Monthly mortgage: AED 6,144
Mortgage-to-income ratio: 92.2%
🔴 Stretched — consider a higher deposit or longer term
Down payment savings needed: AED 384,750
At 20% savings rate, years to save: 24.0 years
Notes & Assumptions
This calculator uses the following assumptions for Dubai in 2026: property price AED 19,000/m² × 75m², mortgage rate 4.2% over 25 years, 20% down payment, transaction costs 7.0%, annual maintenance 1.2%, property appreciation 9.0%/yr, rent inflation 3%/yr, opportunity cost of capital 7%/yr. No property tax or CGT. 4% DLD fee. Median AED 18,300-20,000/sqm (ValuStrat Dec 2025). Yields 6-9%.
Same calculator, other cities
Frequently Asked Questions
Is it better to rent or buy in Dubai in 2026?
Based on 2026 data, buying a home in Dubai typically becomes financially advantageous after 1 years, once property appreciation and equity are factored in. With a mortgage rate of 4.2% and estimated annual appreciation of 9.0%, buying makes sense for long-term residents.
How much do you need to earn to buy in Dubai?
A typical 75m² apartment in Dubai costs approximately AED 1,425,000 in 2026. With a 20% down payment of AED 285,000, the monthly mortgage is AED 6,144. Financial advisors recommend keeping mortgage payments below 28–35% of net monthly income, which implies a gross salary of at least AED 245,758 per year to comfortably afford this purchase in Dubai.
What is the price-to-rent ratio in Dubai?
The price-to-rent ratio in Dubai is approximately 15x in 2026 — meaning it takes 15 years of rent to equal the purchase price. A ratio above 20 generally favours renting; below 15 generally favours buying. Dubai's ratio of 15 suggests buying can be advantageous for stays of 7+ years.
How this calculator works
This calculator compares the total cost of renting versus buying over a configurable time horizon. It includes mortgage payments, transaction costs, maintenance, property appreciation, rent inflation, and the opportunity cost of tying up capital in a down payment.
What's included
- Mortgage principal and interest payments
- Transaction costs (stamp duty, notary, etc.)
- Annual maintenance and property tax
- Property appreciation and rent inflation
- Opportunity cost of capital (7% default)
What's not included
- Renovation or major repair costs
- Home insurance premiums
- Tax relief on mortgage interest (varies by country)
- Emotional or lifestyle value of ownership
Data sources: Central bank mortgage rate data, local property price indices, Numbeo rental averages, and official transaction cost schedules. Updated for 2026.