UAE Renters Consider Buying as Mortgage Costs Rival Rents

Nov 13, 2026
News
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According to a survey conducted by Bayut and Dubizzle, purchasing a property is a major option that many tenants are considering in the UAE. The survey saw over 2000 respondents among which 45 percent claimed they had thought about acquiring a home instead of renting it. There are different levels of preparedness among the respondents to purchase a home:

18 percent are searching for the property they want to buy.
26 percent are open to purchase opportunities provided that they saved enough for the down payment and the initial expenses.
Others show lesser readiness.

The results provide additional context to the property purchasing activity in Dubai properties. It also reveals a change in the property buying trends in Dubai real estate.

UAERentersConsiderBuyingAsMortgageCostsRivalRents

Mortgage Costs are Becoming Part of the Rent-Versus-Buy Calculation

Among the tenants that are checking out the purchasing alternatives, 52% claimed they intended to stay in the Emirates indefinitely. On the other hand, 34% stated that payments on the mortgage are similar to payments on rent. This shows two things: how long people plan to live in an apartment and whether they are able to pay for the mortgage.

For the tenants searching for residential property for rent in Dubai, the comparison should be based not only on the monthly payment but also on the down payment, the mortgage value, and maintenance costs. When comparing an apartment for sale in Dubai, it is vital to consider savings, the expected duration of living in the apartment, and the necessity of being flexible.

Saving the Deposit Continues to be a Major Milestone

The difference between the 18% of buyers actively looking for a property and the 26% who are saving for the upfront costs indicates a financial hurdle. While the payment on a mortgage may seem manageable each month, buyers need the money to make such large purchases.

Before making an offer, potential buyers must:

Determine how much deposit they will need for a particular property and the payment method.
Take into account the cost of registration, agency, valuation, and mortgage process.
Keep some money aside for moving and furnishing the house or covering unexpected costs.
Assess whether they are eligible for a mortgage and how much they will have to pay each month.

These calculations are relevant to property investment in Dubai, where a person is renting or buying a property for living in. It also applies to real estate investment Dubai, where buyers compare their income with costs while buying real estate.

Outlook Of Consumers Reflects Cautious Optimism

As per the survey results, 46 per cent of people who plan to buy property believe UAE prices will increase in the next 12 months, while 35 per cent think the prices will remain unchanged and 20 per cent presume that prices will go down. Sixty per cent of respondents claim to be very confident or cautiously optimistic about the market situation in the next five years. Personal housing issues are important with 72 per cent of people saying they would like to buy for personal purposes. Good prices and personal or family housing needs are the main incentives.

However, 49 per cent of respondents are still doing their research on the internet, meaning that real estate demand may not yet lead to actual deals. It is also necessary to look at the Dubai real estate market along with statistics on finished transactions. One can compare offers on the properties for sale in Dubai with completed transactions to understand whether they are adequate.

Rental Deadlines Keep Tenants Focused on Immediate Housing Needs

Most of the participants in the research were faced with the situation requiring urgent decisions regarding rental. 47% needed to move or renew their leases within a month and 71% after three months.

The results concerning rental preferences are as follows:

50% of the participants would like rents to stay unchanged in the upcoming year;
25% of the participants expect an increase in rent;
25% of the participants expect a decline in rental rates;
32% of people looking for a rental are searching for a bigger or more attractive home;
31% are searching for a cheaper home while 26% are looking for a property similar to their current one.

The fact that one may have to renew the lease in a hurry means they have to secure a rental property before they are ready financially to buy one. Real estate brokers in Dubai can help in finding the best accommodation. Those who are investigating the best residential project in Dubai should check the prices and the suitability of each project.

More Transparent Information Could Help Buyers Move Forward

The survey showed that buyers identified ways in which their level of trust can be improved, namely: 50% of them would like to have definite market trends, 40% – clearer pricing, 34% – current transactions’ information, and 26% – dependable advice from agents. These points may be important in the comparison of the existing properties and off-plan In Dubai. People who intend to buy off plan villas in Dubai need to check the terms and conditions regarding installment plans, handover dates, payment terms, the developer’s reputation, and any hidden charges.

While online search can help compile the list of good options, it cannot replace checking documents and homes in person. It is necessary to possess valid data concerning the prices stated and completed transactions. The separate data for Q3 2023 demonstrated an increase in total sales volume in Dubai South, Downtown Jebel Ali, City of Arabia, Damac Lagoons and Dubai Investment Park as compared to the previous year.

What the Survey Means for Renters Considering Ownership

The findings indicate that buying is not always more economical than renting. About 45 per cent of the renters surveyed are interested in buying, but cost, timing and a sense of confidence are the factors influencing this decision-making process.

Here are a few things renters must consider before making a purchase:

How long do they plan to stay in the UAE?
What will be the total cost of running a property and renting it out?
What are the costs and second mortgage eligibility as well as the deposit amount?
Could they check what homes have been sold recently?
Do they think about their future needs when selecting the property and what benefits it can bring?

When looking at a 2 bedroom apartment for sale in Dubai, buyers have to pay attention to the layout and location, service charges and total cost of ownership. The same concerns the waterfront townhouses for sale in Dubai. It is important to remember that results of the survey simply show interest and not readiness to buy.

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