Should Expats Buy or Rent in Dubai?
With so many rules and restrictions lifted in recent years, now is an excellent time for expats in Dubai to buy their own properties. Renting has been the normal way of life for many in the city, and you may be wondering if bucking the trend is worth it.
Below, we take a close look at whether expats should buy or rent property in Dubai.
Are You in Dubai for the Long-Term or Short-Term?
When choosing whether to buy or rent property in Dubai, you should consider how long you’re going to be here. If you’re staying for less than five years, you’re probably better off renting.
That said, property prices are astonishingly low in Dubai. Even if you aren’t living in the city for the long-term, you might want to buy a property and rent it out once you head back to the UK. Check out our blog on renting out property when you leave the UAE for more information.
If you know you’ll be in the city for the long-term, buying your own home can be a much better option. The money that would be going towards rent payments is instead going towards your mortgage, meaning you’re paying for an asset that will actually belong to you a few years down the line.
As the property is yours, you could always sell it if you ever decide to leave, or you could keep it as a rental investment.
Is Now a Good Time to Buy?
Not only is the property market more accessible than it’s ever been, homes are very affordable.
When compared to the UK and major European countries, you get a lot of property for your money in the UAE. For the cost of a small studio flat in London, you could get a stunningly spacious beachfront property in Dubai.
The Expo 2020 (moved to 2021 due to Covid) is also creating a lot of buzz around Dubai. The city is establishing itself as a global leader in science and industry, and historically speaking, property prices tend to rise by a significant amount after an Expo.
In Milan, property prices rose by 9.6% thanks to the Expo 2015. Since the Expo 2010 in Shanghai, property prices there have soared by 46%.
To get the best value, expats will need to buy a property now before prices start to increase again.
Arranging Your Mortgage the Easy Way
By now, you will have a better idea on whether you should buy or rent in Dubai, and if you’re looking to purchase a property, we can arrange the best mortgage deal for you.
Expat Mortgage was set up to help expats find their dream homes without them having to worry about the stress that comes with finding the best rates.
We save our clients an average AED 150,000 — equal to £30,000 — over the lifetime of their mortgage, as we have established a great working relationship with the banks of Dubai. Make sure to get in contact to see how many dirhams we can save for you.