Apartments in Dubai: Should Expats Buy or Rent and Why?
Evidently, the biggest expense you have as an expatriate in the UAE is the rent. According to experts, 40% of your salary will be spent on rent if you live in Dubai, in particular. So, then is it better to rent or buy? This is the question that many expatriates in Dubai, are asking themselves. Most expatriates opt for renting, especially when they newly arrive in the UAE and they do not know the best place to live. In addition, they must live in the country for at least six months before they can apply for a mortgage with a UAE bank; so, in their first year, at least, in most likelihood, they will opt for a rented accommodation.
As of today, the prices of apartments for sale in Dubai have certainly declined as compared to 2015. For example, the Central Downtown, where the sharpest decline has been recorded, is nearly 7% of the total price. Now that Dubai is preparing to host Expo 2020, it is expected that Dubai residents will see a rise in both rental expenses and costs of buying any of the Dubai homes.
The answer to the one-million-dollar question is, it depends on the length of your stay too. If it’s short, mainly, for a few years, then rent is more economical. If, on the other hand, you are staying for a longer period of time, then probably buying is more favorable. “I advise you to become an owner in the United Arab Emirates only if you have an absolutely stable job,” said a real estate expert when asked about expatriates considering buying an apartment in Dubai. Committing to paying mortgage over a significant span of time, when you aren’t even sure that you are going to stay here for a long period, can become inconvenient. Flexibility and low level of responsibility for the property are the two main advantages of living as a tenant. On the other hand, the total amount you pay for renting a two-bedroom apartment in Dubai in a period of few years can be easily used as the instalment for buying your own house in Dubai.
In the case where you choose to become a property owner, you need to pay the down payment (a deposit of 25% to 35% of the price is required), not to mention other administrative fees and the commission of the intermediary. If that is covered, then considering any of the apartments for sale in Dubai, in the long run, is a wiser decision. Not only will you be the proud owner of a property in Dubai, but will also be able to rent it out and get your return on investment in the following years.
While looking for your dream apartment, finding the right real estate company in Dubai to provide you with the assistance you need, is the key. Ellington Properties, as one of the prime real estate developers in Dubai, provides an impressive collection of houses for sale in Dubai as they are keen on developing unique, classically beautiful homes for individuals and families that appreciate good design. Get in touch with our expert team at [email protected] and take your first step towards buying your dream flat in Dubai.
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