Buying Dubai property cheaper than renting?

January 12th, 2015

Buyer has to pay 25% in cash, 4% in DLD charges, 2% agent fee

View from Burj Khalifa in Dubai

UAE-based company suggests time may be ripe for renters in Dubai to become homeowners. (Patrick Castillo)

Buying a property or renting one is a personal decision, but a new research by a UAE-based company suggests that time may be ripe for renters in Dubai to become homeowners.

“Our analysis reveals that many tenants may now be able to purchase a property similar to the one they are renting at a lower monthly cost. This appears to be particularly the case for lower cost starter type home,” says Declan King, Director & Group Head – Real Estate, ValuStrat.

He believes stabilisation in residential sales prices during the second half of 2014, along with continued increases in rental rates during the same period has brought about a scenario where it is now cheaper to pay a mortgage then equivalent rent

Their analysis of properties worth Dh1.57 million or less in freehold locations revealed monthly costs as follows:

Two assumptions for the analysis are annual lease on un-furnished basis and  75 per cent loan-to-values, 25 year loan term and 4.25 per cent interest rate…read more

Source: Emirates 24/7

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Categories: Dubai Property News | Tags: , , ,

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