If you are willing to relocate or already living in Dubai, your primary concern would be about finding a suitable apartment for you and your family. So what is the right decision? Should you buy or rent an apartment in Dubai? Where should you look for an apartment in Dubai? These are some of the first questions that will pop into your head; that’s why we will take you through all the crucial aspects that you need to know before deciding. The most important decision is whether to buy or rent, which depends mainly on your long-term goals and your financial status, among other aspects. Today the real estate market in Dubai is wavering in favor of buyers, but still, it’s a financial decision to make. So if you are looking for more information or someone to talk to, we would be more than happy to take you through it all at Sobha Realty. So let's talk about the pros and cons of renting and buying an apartment in Dubai.
● How long are you planning to stay in Dubai?
The first thing you need to consider before deciding whether to rent or buy is how long you are planning to stay in Dubai. Are you going to stay for at least five years? If the answer is yes, then it's probably better for you to buy an apartment in Dubai because you’re going to stay long enough to benefit from it, and you’ve made up your mind about your long-term goals and plans. But if the answer is no and you’re planning on staying for 1 or 2 years, then you should consider apartments for rent in Dubai as you are not yet ready for long-term financial commitments.
● Financial status
One of the other crucial aspects to deciding whether to buy or rent is your financial status. If you have a stable job that provides a good income, then your decision is much more likely to buy because why pay rent every month and own nothing when you can pay a similar mortgage and own the property? The roadblock here would be the down payment which ranges from 10% to 20% of the property price. On the other hand, if you’re working as a contractor or you don’t have a stable monthly income, buying would not be the best option for you, and renting a property in Dubai would be ideal.
● Researching different areas and price fluctuations
Choosing the area where you want to rent or buy depends mainly on your lifestyle and financial situation. Dubai is known for its luxury properties and lifestyles, so price fluctuations are considerably high between diverse areas and lifestyles. So if you’re living in Dubai, you need to visit areas that interest you or call an agent to get recommendations. It will be a little more complicated if you don’t live in Dubai, but a skilled agent could be of great help.
In the end, it's money that you worked hard for, so take your time in understanding the market based on practicality and profitability according to your needs to comprehend the financial commitment and understand all costs involved in renting or buying a property in Dubai.
I. Pros of buying a property in Dubai are numerous
○ High Rental Yields
First of all, Dubai is known for its high rental yields, considered one of the highest in the world. On the other hand, the price of a property in Dubai is significantly low compared to other global cities such as London and New York.
○ Growth Of Population
Dubai is now one of the fastest-growing cities in the world. The city’s population has grown by 1000% in 40 years.
UAE VAT Law states that all housing investments are considered living areas and are subject to 0% taxes.
○ Stringent Rules
Real Estate Regulatory Agency (RERA) enforces stringent rules to protect Dubai investors and secure Dubai’s real estate long-term future.
○ Safety and Stability
Dubai is one of the safest cities in the world according to recent ratings because of its strict laws and regulations.
Dubai’s infrastructure is known to be mind-blowing as it has some of the tallest skyscrapers in the world, including Burj Khalifa, the tallest of them all.
○ Investor Visa
Investors who buy a property for more than AED 1,000,000 can apply for an investor visa, which includes family members and makes the investor eligible for a driver’s license.
II. Cons of buying a property in Dubai
The cons are not as much as its pros, but the main con is the initial costs, including 4% of the property price, ownership certificate fees, an administration fee, and maintenance fees to the Dubai Land Department.
Renting is not like buying. You’re not required to pay down payments or fees, you just pay rent which would be a pro if you’re not staying for too long or just coming for a while to do business. On the other hand, if you are staying for a long time and can pay a down payment on a property, paying rent is like throwing away money without anything in return. So if you are coming to Dubai and willing to call it home, it’s better for you to save up and buy property in Dubai now. Don’t hesitate to contact us at Sobha Realty and we will take you through the process and show you all your options.
1. Is it worth buying an apartment in Dubai?
As we mentioned before, buying an apartment in Dubai has more pros than cons. The key advantage would be the rental yields which are higher than any other major city in the world; so if you’re not planning on living in it, it will definitely be worth the investment.
2. Can I buy a property in Dubai and rent it out?
Yes, you can rent it using popular real estate companies or portals.
3. Do people rent or buy in Dubai?
That is one of the reasons Dubai is impressive. Both renting and buying are popular in Dubai, depending on your circumstances.
4. Does buying a property in Dubai give the owner residency?
Yes, according to the price of the property you’re buying. Properties for AED 1,000,000 or more can grant you an investor visa.
5. Is it worth it to live in Dubai?
Dubai offers versatile lifestyles that are much better compared to other global cities and are constantly improving.
6. How long does the property owner visa allow you to stay in Dubai?
Once you own a property, you may apply for a visa valid for two years and then renew it for as long as you still continue to own the property.