Buy a Home — & should you?
The UAE's biggest money decision — and its most hidden costs. See the real cash to walk in the door (not just the down payment), your true mortgage burden, and the honest rent-vs-buy answer.
Your numbers
example values — edit to yoursRent vs buy
How long will you realistically stay?
The real entry ticket isn't the 20% down payment — it's AED 409,790 in cash. Of that, AED 109,790 is pure fees you never get back: AED 60,000 DLD transfer (4%), AED 31,500 agent, plus mortgage registration, bank and valuation fees. That money is gone the day you sign.
Over your 5-year horizon
On a 5-year horizon, buying comes out ahead by about AED 242,096 (it breaks even around year 2). You stay long enough to out-run the upfront fees. Just make sure the cash buffer survives the AED 409,790 hit and you can hold through a flat or falling market.
Basis: Dubai-weighted fees: DLD transfer 4%, agent 2% + 5% VAT, mortgage registration 0.25% of loan + AED 290, bank processing ~1%, valuation ~AED 3,000 (other emirates vary). CBUAE caps expat first-home borrowing near 80% LTV and total debt at 50% of income. Rent-vs-buy counts only unrecoverable owning cost (fees + interest + service charges − appreciation) vs total rent; principal repaid is equity you keep. Selling later adds ~2% agent. Education, not advice.
Common questions
What down payment do expats need to buy property in Dubai?
Typically 20% of the price for a first home under AED 5 million (15% for UAE nationals) — plus roughly 7–8% in one-off costs: 4% DLD transfer fee, ~2% agent commission, mortgage and valuation fees. The real cash to walk in is about 27–28% of the price.
Is it better to rent or buy in Dubai?
It mostly depends on how long you'll stay. Under ~5 years, the ~8% buying costs and selling costs usually outweigh the rent saved; beyond that, owning tends to pull ahead. The calculator runs your actual rent, price and horizon.
How does Islamic home finance differ from a mortgage?
Diminishing Musharaka: you and the bank co-own the home, and you buy out the bank's share over time while paying rent on the remainder. No interest is charged, but the total rent paid is comparable to mortgage interest, and the upfront cash needed is the same.