Rising rental prices are driving many Dubai residents to buy property for the first time in the emirate, real estate experts said.
One of the main reasons for the trend is mortgage prices are now in line, or often cheaper, than the monthly cost of renting a home in Dubai.
The hassle of having to renegotiate rent each year was another reason why people were keen to own their own homes, first-time buyers told The National.
The catalyst for a large proportion of residents debating renting versus buying is due to the monthly mortgage payments now being either comparable, or often less on the purchasing side
Charlie Bannan,
haus & haus
“We’ve seen a number of Dubai residents move from renting a property to purchasing their first home across the city,” said Charlie Bannan, sales director for real estate agency, haus & haus.
“With rental prices rising around 20 per cent over the past 12 months in Dubai’s core communities, and buyer registrations being at an all-time high for haus & haus across the same period, the two are certainly linked.
“The catalyst for a large proportion of residents debating renting versus buying is due to the monthly mortgage payments now being either comparable, or often less on the purchasing side.”
Another factor behind the rise in first-time home ownership is many residents have spent several years living in the UAE and they now want to put down roots.
A three-bedroom villa in Sidra, Dubai Hills, costs between Dh280,000 to Dh300,000 per year to rent, but Mr Bannan said the mortgage payments for the houses, which are valued at Dh4.85 million, would be under Dh250,000 per year.
“Naturally, this is only an option for residents who have the cash funds available for the initial down payment to switch from renting to purchasing,” he said.
Among the most sought-after locations for first-time buyers in the emirate are Dubai Hills, Arabian Ranches and Emirates Living.
The property expert said one of the most common requests from renters hoping to buy property is that they can move into it almost immediately.
“The main requirement for buyers who find themselves looking to purchase in the current market is a vacant on transfer home, meaning they can occupy the residence once taking full ownership,” said Mr Bannan.
“We are seeing, now more than ever, buyers open to more than one community to find a home which not only fits their wants and needs but also ticks the main box of being vacant on transfer.”
There was an increase of up to 21 per cent in the cost of renting a “reasonably priced” apartment in Dubai in the first half of 2022, data released by Bayut and dubizzle showed.
The cost of renting luxury apartments has increased by an average of 43 per cent, whereas the rent on an upscale villa has risen by up to 30 per cent.
Visa status led to first-time purchase
One Dubai resident who bought a new home after renting for more than two decades is Craig Cochrane, originally from the UK.
“One of the reasons we decided to buy was the volatility of the rental market. I didn’t look forward to having to renegotiate each year with the landlord,” said Mr Cochrane, who works in the hospitality industry.
“Before, I was concerned that because my visa was tied to my work, that it didn’t make sense to buy a property, because we didn’t know how long we would be here for.
“That all changed last year when I received a golden visa. This made me think it was a good time to finally buy a property.”
Mr Cochrane is about to take ownership of a three-storey apartment in Dubai Marina next month.
He currently lives in a villa in Jumeirah Park with his wife and three children.
He would not disclose how much he paid for his new home but admitted the monthly repayments would be less than the Dh250,000 he currently pays in rent.
Also buying her first property in Dubai is Katy Granville, originally from the UK, who works in marketing.
“We wanted somewhere to call our own instead of paying rent,” she said.
“I’ve lived here with my husband for 11 years and as time has gone on, and three children later, we decided we wanted to stay here for the medium term at least.
“What gave us the kick was when property prices started to increase last year, our landlord decided he wanted to sell so he gave us our eviction notice.”
Now Ms Granville is about to move into her new home in The Villa, after renting a house in the Mira community in Dubai South for the past few years.
She had been paying Dh120,000 a year in rent. She would not say how much she is paying for her new home, other than the monthly payments will be more than she spends currently on rent.
“It’s worth it, though, to have a much bigger home and to know we don’t have the annual hassle of having to renew the rent,” she said.
Another real estate expert said it was clear the mindset of many residents is changing.
“People are thinking why should they rent anymore when the market is continuing to rise and they could get a fixed monthly mortgage,” said Mario Volpi, sales and leasing manager at Engel & Volkers Dubai.
“It makes sense if they are secure in their jobs. It’s definitely a trend I am seeing.”
Gulf Under 19s final
Dubai College A 50-12 Dubai College B
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
If you go
The flights
Emirates flies from Dubai to Seattle from Dh5,555 return, including taxes. Portland is a 260 km drive from Seattle and Emirates offers codeshare flights to Portland with its partner Alaska Airlines.
The car
Hertz (www.hertz.ae) offers compact car rental from about $300 per week, including taxes. Emirates Skywards members can earn points on their car hire through Hertz.
Parks and accommodation
For information on Crater Lake National Park, visit www.nps.gov/crla/index.htm . Because of the altitude, large parts of the park are closed in winter due to snow. While the park’s summer season is May 22-October 31, typically, the full loop of the Rim Drive is only possible from late July until the end of October. Entry costs $25 per car for a day. For accommodation, see www.travelcraterlake.com. For information on Umpqua Hot Springs, see www.fs.usda.gov and https://soakoregon.com/umpqua-hot-springs/. For Bend, see https://www.visitbend.com/.
Pox that threatens the Middle East's native species
Camelpox
Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.
Falconpox
Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.
Houbarapox
Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.
THE SPECS
Engine: 3.9-litre twin-turbo V8
Transmission: seven-speed dual clutch
Power: 710bhp
Torque: 770Nm
Speed: 0-100km/h 2.9 seconds
Top Speed: 340km/h
Price: Dh1,000,885
On sale: now
Famous left-handers
- Marie Curie
- Jimi Hendrix
- Leonardo Di Vinci
- David Bowie
- Paul McCartney
- Albert Einstein
- Jack the Ripper
- Barack Obama
- Helen Keller
- Joan of Arc
Who has lived at The Bishops Avenue?
- George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
- Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
- Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
- Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
- Land was originally the Bishop of London's hunting park, hence the name
- The road was laid out in the mid 19th Century, meandering through woodland and farmland
- Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
Everton 1 Stoke City 0
Everton (Rooney 45 1')
Man of the Match Phil Jagielka (Everton)
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Why your domicile status is important
Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born.
UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.
How Voiss turns words to speech
The device has a screen reader or software that monitors what happens on the screen
The screen reader sends the text to the speech synthesiser
This converts to audio whatever it receives from screen reader, so the person can hear what is happening on the screen
A VOISS computer costs between $200 and $250 depending on memory card capacity that ranges from 32GB to 128GB
The speech synthesisers VOISS develops are free
Subsequent computer versions will include improvements such as wireless keyboards
Arabic voice in affordable talking computer to be added next year to English, Portuguese, and Spanish synthesiser
Partnerships planned during Expo 2020 Dubai to add more languages
At least 2.2 billion people globally have a vision impairment or blindness
More than 90 per cent live in developing countries
The Long-term aim of VOISS to reach the technology to people in poor countries with workshops that teach them to build their own device
UAE currency: the story behind the money in your pockets
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
Company profile
Name: Infinite8
Based: Dubai
Launch year: 2017
Number of employees: 90
Sector: Online gaming industry
Funding: $1.2m from a UAE angel investor
