​​Rent or buy – managing a home in Dubai, the UAE

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Dubai is a multicultural metropolis. It welcomes citizens of different countries providing those with an opportunity not only to buy but to rent a home as well. As rents continue to rise, developers in Dubai are using this as an argument to convince potential end-user buyers to invest in a home rather than start or continue renting. Prices property in the UAE are affordable for rent and for purchase. 

Developers with finished or nearly finished homes back this up with compelling offers. They provide a convincing argument that you can move in now and pay the full price in 3-8 years. As a rule, the developers do not establish incredibly inconvenient payment plans. The companies are interested in attracting more clients; therefore, they install beneficial conditions for both sides.

When rent increases reach 20-30% or more, prospective buyers are looking more closely at homeownership options. And according to CBRE, six-month rent increases in Dubai averaged about 25%, while the average property value rose only 9%.

Pluses and minuses of real estate purchase

Advantages of real estate purchase

–       Possibility to live according to your own rules

It is obvious that an owner of a property has much more rights than the most loyal tenant. If you plan to move to Dubai in a rented home, it imposes certain restrictions that you cannot overcome. For example, most house owners do not allow their tenants to have pets as they can cause some damage. Or you cannot invite friends or relatives often, cannot change the design or furniture.

–       Legal ownership

If you buy a property, it becomes your personal space. You can do everything you want there and nobody can stop you. Besides, there is no need to contact the landlord about any minor issue.

–       Renting out your home

As a house owner, you have the right to rent your real estate out. Imagine that you need to move to another country. If you have a legal ownership of a house, you can find trusted tenants and get an annual return of 7-8%. You will make money even without your presence in the country.

–       Reliable asset

Real estate is a solid and reliable asset. Its value can fluctuate both positively and negatively, but it will never be zero.

Disadvantages of real estate purchase

–       High cost

Dubai is one of the most popular metropolises in the world. It is a business center housing an impressive number of head offices of international companies. Properties there cannot be cheap.

–       Absence of mobility

It may be called a temporary disadvantage. You will have to come to the country at least once a year if you pay the whole cost of the house. However, if you take out a mortgage or install a payment plan, it is necessary to stay in the country until the end of the loan.

Pluses and minuses of real estate rent

Advantages of real estate rent

–       Mobility

In case you are not sure about the decision of living in the country permanently, it is advisable to rent a property. You can live a few years, and then move to another country or city without any burden.

–       Absence of loans or payment plans

You can live in a house but you are not connected to the government financially. As a tenant, you pay the set price and do not think about mortgages and credits.

–       No maintenance worries

For those, who do not intend to stay in Dubai forever, but want to live in comfort, rent is a good solution. Apartments and villas for rent are mostly equipped with all the necessary furniture and do not require any maintenance.

Disadvantages of real estate rent

–       Impossibility of premature termination of the contract

Legislation on rental property strictly controls the relationship between tenant and landlord. The first can not evict the tenant at will, and the second – can not move out when he pleases. The minimum term of the lease contract in Dubai – 1 year, its termination without a valid reason entails the payment of a large fine.

–       Large expenditures

Most often the rent in Dubai is paid for a year in advance, or paid by check for every 3-4 months, which means that the tenant each time will have to give an impressive amount for the apartment.

–       No rights on the property

A lease does not give you full rights to the property. In other words, the tenant always faces restrictions. For example, there may be a ban on living with children, pets.

The outcomes

The choice of real estate rent or purchase is a personal decision of any resident. It is usually predetermined by many factors. Emirates.Estate is ready to offer premium housing options both for rent and purchase at affordable prices. Visit the website and look through the impressive list of beneficial properties.

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