Rent vs Buy Calculator Dubai: Find Your Break-Even
It's the question every Dubai resident eventually asks: am I wasting money on rent? The honest answer depends on your numbers and your time horizon. This calculator compares the true cost of both paths.
Your planning horizon — used for both rent and buy projections.
More options
Return you could earn on the down payment if you rented instead.
Over 5 years
Buying is cheaper by AED 218,718
- Total rent paid
- AED 530,461
- Opportunity cost (down payment)
- AED 73,855
- Total rent scenario
- AED 604,315
Rent scenario
- Down payment
- AED 300,000
- Transfer costs
- AED 99,820
- Mortgage paid
- AED 400,199
- Ownership costs
- AED 0
- Property value at exit
- AED 1,914,422
- Total buy cost (gross)
- AED 800,019
- Net buy cost (after sale)
- AED 385,597
Buy scenario
Assumptions
Net buy cost subtracts the projected capital gain but not any mortgage balance still owed at exit, so it understates the true cost when you sell before the loan is repaid. Appreciation and investment returns are assumed constant and are not guaranteed.
How to read the results
The calculator weighs your current rent (and typical annual increases) against the full cost of buying — down payment, transaction fees, mortgage payments, and service charges — then factors in the equity you build and potential appreciation to find your break-even point.
Rules of thumb for Dubai
- Staying under 3 years? Renting usually wins once you account for the ~7–8% upfront purchase costs.
- Staying 5+ years? Buying often comes out ahead, especially while rents are rising.
- Job stability, visa status, and lifestyle flexibility matter as much as the math.
The rent-versus-buy answer often comes down to costs you don't see upfront. Before you finalize a purchase, estimate your repayments with the Dubai Mortgage Calculator and the one-time fees you'll pay at handover with the Dubai Property Transfer Cost Calculator. If you're buying primarily as an investment rather than to live in, the Dubai Rental Yield Calculator will show whether the rent you collect justifies the move. MSN Developments is a boutique developer that builds these tools to help buyers make this exact comparison with confidence.
This tool provides estimates for guidance only and is not financial advice.
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