It goes without saying that the emirate offers a luxurious lifestyle – thanks to the modern facilities and amenities available for residents. There’s a reason why many notable personalities and celebrities own properties in Dubai.
The recent announcement of 100% company ownership in the UAE has also opened up avenues for entrepreneurs from across the globe. This means a higher number of foreigners moving to the emirates. Dubai, in particular, is expected to welcome foreign investors and businessmen because of the prospects it holds for business owners. From a sustainable business environment to tax benefits and other leverages, it makes for an ideal place to own a company.
Owing to this development, the demand for residential properties is also expected to see a surge. Investors and businessmen have already started making their way to Dubai. And needless to say, finding a residential property, apart from setting up a business, is going to be their top priority.
Now, there are two main options when looking for living spaces in Dubai; renting or buying a property. Both these options come with certain pros and cons. Let’s take a look at them:
Buying a property in the City of Gold comes with many perks. Some of these are:
One of the biggest pros of buying property in Dubai is that you own a valuable asset. It’s a solid investment that can benefit you for a long time. You can sell it at higher rates to earn ROI or rent it out to have a passive stream of income flowing. Or, you can just live in the property with your family and save yourself from recurring expenses related to renting a property.
When you live in a rental property, the landlord may ask you to vacate it once the contract has expired or due to any other valid reason. Of course, they will have to inform you about the same in advance. Still, it can be a real hassle to look for another apartment/housing unit, pack all your belongings and relocate to it. Moving certainly comes with a lot of challenges.
There’s no such hassle associated with buying a property. You will only have to vacate the property only when you choose to. And people don’t change homes that frequently if they own one.
Due to the sole fact that you’re spared from bearing a regular expense (paying rent), you can manage your finances in a better way if you own a property. You will have higher control over your budget; thus, you can save more as well.
Buying a property comes with enhanced peace of mind. There’s no worry of vacating the property or the thought of “how will you manage rent if you lose your job”. Of course, losing a job gives rise to numerous troubles, but not being able to pay rent won’t be one of them.
Furthermore, one tends to feel more relaxed and satisfied when they live in a property that they own.
Contrary to what most people think, buying property in Dubai also comes with certain drawbacks as well. These include:
The high property prices in Dubai make it difficult for an average salaried person to own a home here. At most, they can buy one in the primary market (off-plan property). But even that would require them to bear mortgage expenses for the years to come.
Foreign nationals in Dubai cannot buy property in all areas of Dubai. They can ‘lease’ it but not ‘own’ it. There are only selected areas (freehold areas) where they can fully own property. This vastly limits their choices of localities.
Buying property in Dubai comes with the additional responsibility of bearing maintenance costs. Even if you have rented out the property, you will have to take care of repairs, overhauling and maintenance of the property, unless mentioned otherwise in the tenancy agreement.
The process to buy a property in Dubai can be very lengthy. There’s a lot of paperwork and other legal steps involved. A minor mistake, such as not reading the sales and purchase agreement, can land you in troubled waters. And if you’re opting for the financing (home mortgage) route, the process can become even more complicated.
The bank or the private lender will analyse your creditworthiness before giving you a pre-approval letter. They will take into account your credit score, credit history, employment details and various other factors before approving your application for the home loan.
Just like buying property in Dubai, renting also comes with many benefits. Some of these are:
As compared to buying, renting a property doesn’t require you to pay a huge sum of money. It’s rather easy on the budget, depending on the size, location, and configuration of the property. Furthermore, there are various types of properties available. Couples can find smaller apartments for rent, while families can choose from bigger rental apartments, townhouses or villas, depending on their requirement.
The limitation of only looking for properties in freehold areas doesn’t apply in the case of rental properties. You can rent a home anywhere you want in Dubai.
The process to rent a property in Dubai is relatively easy when compared to buying one. There’s no extensive paperwork involved. Furthermore, your credit score and history won’t be checked as well.
Renting a property in Dubai has certain cons associated with it. These are:
Renting a property, as we all know, is a recurring expense. As long as you live in a rental property, a major chunk of your income will be used for paying rent. And the fact that property rents are higher in Dubai doesn’t help either. Many people are unable to save money due to this reason only.
Buying property in Dubai, on the other hand, is a one-time expense. The buyer only has to take care of maintenance costs in the later stages.
It’s quite self-explanatory, isn’t it? Families usually need bigger living spaces. This means that they have to pay a higher rent. However, this also depends on the area they have selected. If it’s located in proximity to prominent landmarks, the rent will be further higher and vice versa.
As stated earlier, when you live in a rental property, you may have to relocate frequently. The reason can be anything; expiration of the rental contract, the owner wants to sell or modify the property, it’s not suitable for you anymore, etc.
In the end, it all comes down to your financial condition. If you can afford it, buying property in Dubai is certainly a better choice. However, renting also comes with many advantages as it allows people to enjoy the upscale lifestyle the emirate offers without breaking the bank.
Whether you want to rent or buy property in Dubai, you can check out the most sought-after listings at Zoom Property. Use our advanced filters to find properties that suit your requirements. You can also download our mobile application to get instant access to the latest properties all over the UAE. It is compatible with iOS and Android devices.