Buying vs. Renting A House In Dubai

Now real estate prices in Dubai are significantly lower than in popular centers such as London, New York, and Paris. Despite this, the city offers one of the highest returns on investment in the world, developed infrastructure, and various amenities. This makes facilities and complexes attractive to investors and end users. Some people are still thinking about what is more profitable – to buy or lease local properties. Answers to this question are discussed below.

To buy or to rent?

Buying and leasing real estate lead to different levels of stability, different lifestyles, and different financial obligations. So, to make this decision, each person should take into account individual factors like budgets and plans for the future. A lot of people are asking us these days whether it’s better to buy or live in a house in Dubai. While there are pros and cons to both, it really depends on your individual circumstances.

Dubai is famous for high returns on investment in residential and commercial units. According to the local Land Department, one-third of accommodation is bought by people who already own another property in the emirate. This trend is explained by the high profitability and relatively low prices.

However, in the city, there are a lot of foreigners who are reluctant to take on long-term real estate commitments. This is not only about money but about such factors as plans for the future and the way of a person’s life. So, renting also has its own pros.

The table below illustrates an idea of who should rent local housing and who should consider purchasing it:

Renting is for:	Buying is for:
Those who plan a short-tern stay in Dubai.	Those who plan a long-tern stay in Dubai.
Those who do not want to stay in one community or home for a long period of time.	Those who want to invest in real estate and obtain a residence permit.
Those who do not have enough funds to make a purchase.	Those who search for comfort and stability.

Factors influencing the choice

Many factors influence this decision. The main ones are the following:

• the duration of stay;
• financial situation;
• Market conditions.

The duration of stay in the city

Before making your choice, it is necessary to think about short-term plans. Do you have any intention of staying in Dubai for at least the next five years? If you are going to live here only for a few months or it is still unclear, then renting a house will be the perfect solution. This provides more flexibility if it comes to moving on to a new place. It is a great option for those who prefer to go with the flow and love freedom. A person can leave the house and go to another city or country by notifying the landlord in just three months.

People relocating to Dubai for a long time to live and work should consider buying a house or apartment and living in JBR, or wherever it is they would like to make their home. The country’s government has developed several programs for foreign property buyers and their families to obtain a residence permit. Investment in local residential and commercial units is an effective solution as the city offers a developed infrastructure, a high level of security, and various amenities.

Financial situation

The cost of property is one of the most important aspects to consider. The first option is perfect for people who have a stable job or other reliable and constant income sources. First of all, a buyer should make a down payment. After that, he will need to pay off the mortgage in monthly installments. A tenant takes responsibility for paying the monthly fee on time under the lease contract.

At first, sight, renting real estate seems more budget-friendly, but this is actually misleading. If a person is going to pay rental fees regularly, isn’t it better to use that money to cover the mortgage? Then he will become the homeowner in 5, 10, or even 25 years and receive long-term benefits as capital gains.

Even if the buyer has to return to the home country or relocate to another area, he can lease out the property to make a steady flow of income or use it to cover the mortgage.

Market conditions

Market analysis is the first thing an investor should do before making a decision to buy a property. Speaking of Dubai, the city currently has one of the most investment-attractive markets in the world. Buyers of local properties can expect to get the most bang for their buck.

Assistance with buying and renting a property in Dubai

The Dubai real estate market offers a wide range of residential and commercial units to meet the needs of any potential buyer or tenant. Visit the official Emirates.Estate website to find the best available offers in the emirate.

You can find units with the best value for money in the up-to-date catalog of the aggregator. In order to get help with the selection of housing that suits personal preferences and capabilities, and to receive full support during the real estate transaction, contact the company’s specialists right now.