Moving to Dubai but can’t decide whether you should rent or buy a home? Do not worry, we have you covered. Choosing to rent or buy a home in Dubai is a very important, yet sometimes difficult, decision. This decision will impact your lifestyle, besides affecting your medium to long-term financial health. There are unique advantages and disadvantages to both, and by the end of the article, you will be easily able to make an informed decision.
In this post, we will walk you through the pros and cons of buying and renting an apartment in Dubai so that you can pick the option that works best for you. So, let’s get started!
Buying an apartment in Dubai: Pros and Cons
Buying an apartment in the global hub called Dubai is something that appeals to a variety of people. Since a residential visa is not needed, expats can easily buy a property in Dubai.
The main advantage of buying a home in Dubai is that it will allow you to acquire an asset that accrues value over time. With the Dubai’s real estate market being in great shape and expected to go from strength to strength in the near future, owing a property can be a smart investment.
Buying a property can also be a better option for those searching for a primary residence or a holiday home and not necessary looking to build wealth. Dubai offers a wide range of choice as far as residential properties are concerned, meaning you can easily find something appropriate for your lifestyle. Another benefit is that owning a property gives you the complete freedom to personalize it according to your specific tastes and needs.
Last but not the least, ownership can pave a way to establish residency in the country. You can receive a UAE residency if you purchase a residential property in Dubai worth at least AED 1 million. Keep in mind this residency comes with an end date, which is either five or three years. Once the term ends, you must renew it if you want to continue staying in Dubai. But since rules may change, it’s a good idea to always keep an eye on the latest updates regarding this.
While buying a home is a better long-term financial decision, it may not be the best option for everyone. If you are on a work visa or know that you will not stay in the UAE for long, then it makes more sense to rent a property than buy one.
Renting an apartment in Dubai: Pros and Cons
Renting a property is easy and there are endless options available. Regardless of your budget, lifestyle, or personal preferences, you are sure to find one that is perfect for you. Whether you are interested in fully-furnished apartments, new residential units, or luxury villas, you’ll find a broad range of rental options in Dubai.
The main advantage of renting a property is that it’s more affordable. You don’t have to worry about spending money on a down payment or securing a home loan. If you are on a tight budget or don’t like the idea of spending all or most of your savings on a home, renting a property can be a far better choice.
Also, fully-furnished apartments can be an attractive choice for new comers. They can easily move into such a unit instead of worrying about buying furniture and appliances to fill a home from scratch.
Another benefit is that you have the freedom to reside in different areas, without having to make any long-term commitments. In contrast, buying a property can kill your freedom. Let’s say you purchase a property in a particular area in Dubai but a couple of years later realize you would rather live in some other part of the city, shifting can be quite difficult (if not impossible).
Renting allows tenants the freedom to live in different areas, or even move year-to-year if they wish, without making any long-term commitments.
Conclusion
Whether you want to rent or buy a residential apartment in Dubai, you can do so easily. Buying an apartment can be financially more viable in the long run, especially if you can comfortably afford the initial down payment. However, if you are on a budget or are not likely to live in Dubai for long, renting a property may suit you better.
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