If you’re thinking about investing in your future, buying a house in Dubai is a great idea. But what if you’re not sure how long you’ll be living in Dubai? Should you rent a house or buy one in Dubai? It’s a question everyone in Dubai faces at some point. And there isn’t a single answer that can be applied to everyone. Let’s take a closer look at both sides of the renting vs. buying in Dubai debate.

Buying: A Larger Investment that Offers Rental Income

There’s a significant investment involved in buying a home. Dubai properties are available at a range of price points depending on the size and location of the property. Palm Jumeirah, Dubai Marina and downtown Dubai are considered some of the best places to buy a house. You can buy apartments and penthouses or independent bungalows and sprawling villas. While financial assistance is available, you will still need to make a down payment, which is a percentage of the property’s sale value.

That said, once you buy a property, it can become a good source of passive income. Most importantly, rental income in Dubai is tax-free. So, when you rent out your home, you’re assured of a sizable extra income every month. You can use this income to indulge in luxuries or reinvest it elsewhere.

Renting: Flexible and Costs Less, but No Property Appreciation

Many expats prefer renting a property in Dubai. The city sees a high demand for rental properties every month. After all, the monthly rent for an apartment is usually much lower than the EMI for a home loan.

However, rental payments do not contribute towards building an asset. Once your lease ends, you do not own the house no matter how much rent you have paid. This is one of the key differences between renting vs. buying a property in Dubai.

When you finish paying your EMIs off, you own a house in your name. Moreover, the value of the property would have appreciated since the day you purchased the property. Hence, if you decide to sell, you could make a good profit within just a few years.

Renting Limits Personalization

A property rental lease is usually signed for one year with an option for renewal, and a 90-day notice period for termination. This means, you’re not tied down to a house. This gives you the freedom to explore job opportunities across the UAE. If you get a job in another city, you only need to give a few months’ notice before you move out of the house.

However, this flexibility comes at the price of limiting your options to personalize the space. Your landlord may allow you to paint the walls and hang artwork, but you cannot make any structural changes. Even if you live in a rental apartment for 10 years, you cannot enclose a balcony or remove a wall between two rooms without the owner’s permission.

Want Residency? Consider Buying a Home in Dubai

If you have business interests in Dubai, you may need a long-term visa that allows you to live, work and travel in the UAE. Buying a property in Dubai above a certain value makes you eligible for the UAE Golden Visa. This long-term residency visa allows you to set up businesses, sponsor family members, access healthcare and benefit from tax exemptions.

This option is not available for property renters. If you rent out your home, your ability to stay in Dubai always depends on the employer who sponsors your visa. If your employment is terminated, you have only one month to find a new job or leave the UAE.

Finding the Perfect Property in Dubai

If you’re not sure of your future in Dubai or you’re just starting your career with a limited income, renting a house may be a more affordable option than buying a property. However, if you have a stable income and want to secure your family’s future, buying a home is a better choice.

Either way, you’ll need guidance from someone who knows the Dubai property market. That’s where we come in. At KeyMax, we help you find investment properties as well as rental homes. If you choose to buy, we can connect you with financiers and help you navigate with the legal procedures. Once your property is ready, we will also help you rent it out so that you can start earning returns on your investment. Connect with us to learn more.