A Financial guide to transitioning from renting to owning

Property advice | 22.10.2025 | Benham and Reeves UAE

If you, too, have been renting in Dubai for a while, you might have probably asked yourself: Should I keep renting or buy my own home? And now that Dubai is experiencing such strong growth, it is more than relevant for anyone to ask this question. That being said, owning a property in Dubai doesn't just symbolise your luxury status but it also puts you into a smart financial decision bracket. And, it comes with long-term equity, stability and a secure future where you can reside in one of the most demanding locations.

So, understanding the financial and crucial steps behind this transition can help you make a wise decision in 2026. Here's a complete guide on how to move from renting to buying in Dubai:

Analyse the rent vs buy scenario (Dubai 2026 outlook)

When comparing rent vs buy Dubai 2026, it's crucial to consider these three factors:

• Mortgage rates: With fixed-rate mortgages now more accessible to expats, EMI payments can be comparable to, or even cheaper than, rent in key neighbourhoods.
• Market trends: In 2026, property prices in Dubai are expected to continue growing, making homeownership a strategic investment rather than just a lifestyle upgrade.
• Long-term equity: While renting offers flexibility, buying allows you to build equity. Note that, with every dirham you pay on your mortgage, you will take a step closer to owning a valuable asset.

So, if your monthly rent equals or exceeds potential mortgage repayments, run the numbers carefully. It is an indication to step into ownership.

Set clear financial goals

Assess your financial health before starting to look for a house.

• Expats typically need to put down a 20% down payment, along with additional fees (approximately). 7-8% of property's value.
• Before making a purchase, set aside at least six months worth of expenses
• Keep your total expenses under 50% of your income to increase your chances of getting approved for a mortgage.

Know your mortgage options

Dubai's mortgage market offers flexible products for both residents and non-residents. Compare:

• Fixed vs Variable Rates: Fixed rates give you stability, while variable rates can offer you savings in case interest rate declines.
• Term Length: A more extended term reduces monthly payments but increases total interest.
• Pre-Approval: Getting pre-approved signals your readiness and strengthens your bargaining position when negotiating.

Plan your transition smoothly

Create a scheduled timeline for your purchase to ensure your lease end aligns with your handover date. Also, consider the moving costs, furnishings and registration fees. Also, to make sure that you're on the right track, get help from a professional property consultant who will help you handle all kinds of negotiation, documentation and valuation efficiently.

Know about market trends in Dubai 2026

Marketers predict that Dubai's 2026 market will continue to grow and reward buyers with steady income, increased financing options, and government-backed initiatives for first-time homeowners.

So, whether you choose renting a property or investing into one, it is better to have a sound understanding of the area specific trends, developer's credibility and flexible payment options.

Your next step towards ownership with Benham and Reeves

Having a home in Dubai signifies not just a sign achieving a milestone, but also making a smart investment for the the future. With a good plan, professional advice, and clear finances, you can confidently move from renting to owning.

You can even download our Buyer's guide for detailed checklists, mortgages, pro tips, and expert insights tailored for buyers in Dubai in 2026. So, if this makes you even a little confident, contact us to have a smooth buying journey!