UAE Rent vs Buy: Where Renting Still Beats Homeownership in 2025
The UAE’s property market has matured into a well-structured, investor-friendly ecosystem. Driven by a post-pandemic influx of professionals and affluent expats, it continues to offer stable returns and rising capital values. However, when it comes to deciding between renting and buying a home, the answer isn’t always straightforward. A recent study by Bloom Holding reveals specific locations across the Emirates where tenants still enjoy better financial value than homeowners — and vice versa.
Where Renting Offers Better Value
According to the study, eight UAE locations currently favour tenants over buyers when comparing monthly costs. These areas offer significantly lower average rental rates compared to monthly mortgage payments, making them attractive to those seeking short- to mid-term living arrangements without the upfront costs of ownership.
Top Areas Where Renting is More Affordable:
- Al Marjan Island (Ras Al Khaimah): The standout performer on the list. Average rent is AED 6,667, while mortgage payments average AED 18,782 — nearly three times more.
- Al Barsha (Dubai): A central district where rental rates remain well below the cost of ownership, with a rent-to-mortgage gap exceeding 60%.
- Al Amerah (Ajman): Similar rental advantage as Al Barsha, offering cost-conscious residents more affordable monthly living expenses.
- Saadiyat Island (Abu Dhabi): Luxury meets savings here, as renters pay an average of AED 14,167, compared to AED 22,669 in mortgage payments – a 60.01% difference.
- Muwaileh (Sharjah): A fast-growing educational and residential hub with rental savings of over 50% compared to mortgages.
- Expo City (Dubai): While positioned for long-term growth, current rent levels make it a savvy short-term option for tenants.
- Al Hamra Village (Ras Al Khaimah): Offers renters savings of nearly 50%, with similar lifestyle perks as buyers.
- Al Rashidiya (Ajman): Affordable rents and accessibility to the emirate’s urban centres continue to attract budget-conscious tenants.
“These areas make renting a financially savvy choice,” noted a Bloom Holding spokesperson, emphasizing that tenants here enjoy significant monthly savings while maintaining access to desirable locations and amenities.
Where Buying a Home Makes More Sense
While renting remains cost-effective in several areas, there are locations across the UAE where buying delivers better financial returns. These communities are ideal for end-users and long-term investors seeking equity growth, stability, and value for money.
Top Areas Where Buying is More Cost-Effective:
- Al Reef (Abu Dhabi): Near Al Raha Beach and Zayed International Airport, this family-friendly community has an average mortgage of AED 4,659 versus rent of AED 7,500 — a 37.88% gap.
- Khalifa City (Abu Dhabi): Renters pay AED 11,250 monthly, while owners pay AED 9,044 in mortgage — a 19.61% savings advantage for buyers.
- Culture Village (Dubai): Strategically located near Downtown Dubai and Business Bay, the mortgage stands at AED 14,531 versus rent at AED 21,250 — a 31.62% difference.
- Jumeirah Village Triangle (Dubai): A growing residential area near JVC, where buying saves 31.07% monthly (rent: AED 13,333 vs mortgage: AED 9,190).
- Tilal City (Sharjah): Rent is AED 9,167, while owning comes in at AED 8,061 — offering a 12.07% cost benefit to buyers.
- Al Sawan (Ajman): With a mortgage average of AED 3,352 and rent at AED 3,750, buyers save roughly 10.61% monthly.
In these communities, property ownership not only offers cost savings but also long-term equity appreciation, especially as these areas grow in infrastructure, demand, and quality of life offerings.
Strategic Considerations: Rent vs Buy in Dubai
Whether to rent or buy in the UAE ultimately depends on your personal circumstances — job security, residency plans, investment goals, and lifestyle needs. For example, those planning to stay short term or prefer flexibility may find value in renting in areas like Dubai Marina or Bluewaters Island. However, long-term residents or investors seeking residency benefits, such as the Golden Visa, may be better positioned as owners in affordable yet rising areas like The Valley.
For guidance tailored to your needs, consult with a specialist at Aurantius Real Estate. With access to the best developer-backed inventory across the UAE, we’ll help you make the right decision — whether you’re planning to rent or buy in 2025 and beyond.
