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The National
2 days ago
- Business
- The National
Rent or buy? UAE rental costs cheaper than mortgage repayments in luxury neighbourhoods
Monthly rental costs in some parts of the UAE are cheaper than mortgage repayments, a new report has found. The trend has put more emphasis on the rent-versus-buy debate, particularly for residents looking to settle in the long term, and comes as the national population surges. The analysis, released by property developer Bloom Holding, was based on 2025 Property Finder data for two-bedroom homes. The study compared monthly rents and mortgage payments across 77 neighbourhoods in Dubai, Abu Dhabi, Sharjah, Ajman and Ras Al Khaimah, finding that in more than half of those (44), renting works out cheaper in the short term. The gap is most clear in Al Marjan Island, Ras Al Khaimah, where the average mortgage payment of Dh18,782 ($5,113) is nearly three times higher than average rent of Dh6,667 ($1,815). This, according to independent mortgage expert Jon Bowe, is because land department fees and developer payment plans in RAK are different to elsewhere in the Emirates. In contrast, Al Reef in Abu Dhabi offers better value for buyers, as mortgage payments are nearly 38 per cent lower than rent (Dh4,659 over Dh7,500, respectively). In Dubai's Culture Village and Jumeirah Village Triangle (JVT), mortgage payments are more than 30 per cent lower than rent, suggesting high-potential entry points for homebuyers, the report says. However, experts are quick to emphasise this is only the case if you are planning to live in a property for two years or less, otherwise buying provides more financial stability in the long term. Can renting be more affordable? Industry experts told The National a number of factors contributed to these findings, such as high property prices, steep down payments and a population that values flexibility. 'Even though rent prices have been increasing, property prices for purchase can be prohibitive for many residents, especially when down payments and continuing maintenance costs are taken into account," Ronan Arthur, director and head of residential valuation at property consultancy firm Cavendish Maxwell, said. Mr Bowe said the primary obstacle for potential homeowners is the ability to afford the initial down payment, which is 20 per cent for properties under Dh5 million and 30 per cent if above, while self-employed buyers will need to pay even more. "This is also the reason we've seen an influx in investors throughout Dubai due to the fact they're receiving higher income from rent than their mortgage payment is costing them, resulting in a higher return on investment." Where do renters get better value? The report highlights a clear divide between luxury and suburban communities. Luxury locations, such as Palm Jumeirah, Downtown Dubai, Emirates Hills and Al Marjan Island, tend to favour renters. High entry prices and service fees, combined with strong rental demand from expats and corporate tenants, make renting more feasible for most. 'Many investors and end users in these areas are willing to accept lower returns in exchange for capital appreciation, prestige and convenience,' Ayman Youssef, UAE managing director at global property company Coldwell Banker, said. However, while mortgage costs can exceed rents in these areas, that doesn't mean buying isn't worthwhile. Daniel Hadi, chief executive at Engel & Volkers Middle East, said: "Many buyers in these communities are focused on long-term capital appreciation or lifestyle benefits, not just monthly costs." Meanwhile, suburban hubs such as Dubai's Town Square, Damac Hills, Dubai South, JVC, JVT and Al Reef in Abu Dhabi offer better value for buyers, as lower property prices and more manageable mortgages attract families and long-term residents. Farooq Syed, chief executive of Dubai agency Springfield Properties, said such communities offer mortgage payments that are often 20 per cent to 35 per cent lower than equivalent rents. 'This affordability gap is driven by a combination of rising rental prices and stable mortgage rates, which have remained between 3.99 per cent to 4.5 per cent,' he added. Historic boom The UAE's property market is experiencing a historic boom. There were 226,000 transactions in Dubai last year, valued at a record Dh761 billion, a 36 per cent annual jump in volume. In June, a Deutsche Bank report showed Dubai had recorded the highest growth globally for city centre property prices per square metre in the past five years. This is largely driven by a soaring population. By the end of March, Dubai's population had risen to 3.92 million, with 89,695 new residents added in the first three months of the year, an average daily rise of about 1,000. Last month, Abu Dhabi's population surpassed four million, fuelled by a 9 per cent increase to its workforce in 2024. Sharjah's population grew from 1.4 million in 2015 to 1.8 million in 2022, the emirate's most recent census in 2023 revealed. This growth is fuelled by a young, international workforce and government initiatives, such as the golden visa and first-time homebuyer programmes, which aim to make the UAE a long-term home for expats. As supply aims to catch up with demand, however, with a flood of new properties set to enter the market, a report by New York-based ratings agency Fitch Ratings predicted the city's real estate market would enter a 'moderate correction' in the second half of 2025. It forecast residential prices could fall by as much as 15 per cent as a record number of projects are launched. While many homeowners remain unconcerned, the report found some prospective buyers were pausing to reassess. "We are witnessing a gradual shift towards home ownership and that's not expected to change in the long term," said Mr Hadi. Why mortgages still make sense While renting may be cheaper month-to-month in many areas, experts warned that home ownership remains a safer bet for those planning to remain in the UAE for the long term. Mr Arthur said, regardless of market conditions, monthly payments build equity through mortgage repayment rather than rent, which some people consider 'dead money'. Mr Youssef added that buying "includes the potential for capital appreciation, projected supply and demand in the area, infrastructure development, quality of life, exclusivity and income potential". However, he warned that buyers also need to factor in costs such as service charges, maintenance and future resale prospects. Another important consideration is stability, said Mr Hadi. "While mortgage payments in fixed-rate structures remain consistent over time, rental rates can increase year after year. Rising rents can outpace inflation, eroding financial stability. Home ownership, by contrast, offers predictability and greater control over housing costs." Property values in Dubai, for example, have historically trended upwards over the long term, so owning a home means you stand to benefit from capital appreciation, added Mr Hadi. "If a property were to grow even modestly in value each year, that gain would be fully realised by the homeowner, adding further to their long-term wealth." Ultimately, it depends on your timetable and goals, said Mr Syed. "If you're planning to live in Dubai for less than two years, renting is usually the more flexible and practical choice." For anyone planning to stay three years or more, then buying typically becomes the more "financially sound" option, he added. Navigating the decision For renters feeling priced out, Mr Syed advised starting with a savings plan focused on building a down payment. 'Ownership may feel out of reach initially, but incremental steps create momentum. Rent-to-own schemes and developer-led payment plans are expanding, and many emerging communities still offer accessible entry points. Even if the first purchase isn't the dream home, it can be a strategic foothold, laying the groundwork for financial stability and long-term equity.' Conversations with a mortgage adviser and an experienced real estate broker can help you understand how much you need to save, Mr Hadi added. Mr Syed anticipates rent growth to continue at a 'more moderate pace', and for capital values in non-luxury segments to stabilise. "As visa reforms and demographic shifts support long-term residency, the ownership proposition is likely to gain traction among first-time buyers and end users seeking cost control and asset growth."
The National
5 days ago
- Business
- The National
Renting vs buying in Abu Dhabi - what the data tells us
It is the conversation that dominates many dinner tables: should we take the plunge and become homeowners? From Dubai to Abu Dhabi and the northern emirates, more residents than ever want to settle down and have a place they can call home, particularly after recent rental surges. But it's important to do your sums. New research from Bloom Holdings and Property Finder shows that in some areas of the country, paying monthly rent is cheaper than a monthly mortgage payment. That said, the opposite is still more common than not. And, advocates will say, as a homeowner, you are building equity and will benefit when you sell. So it's important to have a conversation. Our analysis of the picture in Abu Dhabi is the subject of this week's Chart of the Week. Our data suggests a couple of curiosities that require explanation. On average, it's far more expensive to pay a monthly mortgage on a property on Saadiyat Island, than it is to rent. That's because rents haven't caught up with the recent surge in property values and purchases. It may also be that a raft of ultra-high-end properties has distorted the figures. There's a different picture Al Reef, an affordable suburb near Abu Dhabi airport. There, rent is much more expensive than the average mortgage rate - and it's a similar picture in Khalifa City and Reem Island. "In many cases, property prices have become disconnected from rental rates," says Andrew Laver, associate director in Cavendish Maxwell's Abu Dhabi office. In Al Reef, for example, he expects average monthly payments to even out, and the next data report should reflect that. "Affordable purchase prices create strong buying opportunities for purchasers. Only recently have both rents and prices begun increasing across Al Reef. Al Reem Island shows a similar pattern, with limited apartment price growth in 2023-2024," he says. So, with some of the data showing lower monthly mortgage payments for owners, does it always make sense to buy? Not necessarily, says Mr Laver. Newly arrived professionals or families will naturally want to settle into their jobs, and save for a deposit before taking the plunge, while others may feel priced out of the market. In the long term, he believes many more people will take the leap and buy. "This transition is especially likely if we continue to see an upward trend in the average duration of expat residency in the UAE, as longer-term outlooks tend to support homeownership over leasing," Mr Laver says. For renters who feel priced out, but still want to build long-term stability in the UAE, there are innovative options worth exploring. This can include real estate tokenisation, allowing investors to see the benefit of a strong market. There is also a host of new off-plan developments in the works, which are often aimed at middle-income families. "With the right timing and planning, off-plan investments can offer a more stable entry point into ownership, especially in emerging communities with strong growth potential," Laver adds.
Campaign ME
5 days ago
- Business
- Campaign ME
Property Finder drives 1,000% surge in daily leads with AI avatars for SuperAgents
MENA-based property portal brand Property Finder is rewriting the rules of real estate marketing with the launch of an AI-powered campaign. The initiative supports top-performing SuperAgents by creating useful AI-generated digital avatars for them, and unlocking a new avenue to gain qualified leads. In a bold, tech-first move, the company has harnessed advanced artificial intelligence (AI) tools to create personalised content at scale, reportedly delivering more than a 1,000 per cent surge in daily seller leads for participating SuperAgents and setting a new benchmark in partner value. By integrating AI motion, voice synthesis and storytelling into avatar content, Property Finder completed each asset in under five days, optimising a process that would typically take six weeks. The result is nearly $1 million saved in production value and a repeatable model for agent empowerment. 'This isn't just a marketing campaign, it's a shift in how we drive results for our partners,' said Sevgi Gür, Chief Marketing Officer at Property Finder. She added, 'We didn't want to limit our use of AI to simply driving cost savings and production efficiencies, instead we set out to leverage the technology available today to put dynamic, high-quality content in agents' hands faster than ever before. AI has moved from experiment to impact, and I'm eager to push the boundaries of storytelling further, enhance talent visibility, create narratives that resonate and deliver real business outcomes.' View this post on Instagram A post shared by AIDAN DOYLE (@aidandoyl) Property Finder AI SuperAgents campaign rollout Property Finder's SuperAgents are top performing real estate agents who help home-seekers. They are highly knowledgeable, respond promptly and thoroughly to leads, have high quality listings, and deliver outstanding results. This SuperAgent offering also incentivises positive real estate agent behaviours. To support its standout SuperAgents, Property Finder has placed 'client dedication' at the heart of its latest campaign, creating AI-generated agent avatars for SuperAgents. These AI avatars were developed entirely in-house, bringing agents' real-world expertise to life through dynamic, personalised content. From a two-minute photoshoot, Property Finder's creative team built dozens of tailored assets including social-ready videos, stills, and branded visuals. Every asset reflects the individual agent's persona and professionalism set against their community of choice and expertise, underpinned by a rigorous avatar verification process. Not only have the agents been recreated, the scenes themselves accurately reflect the communities down to the square metre. The results speak for themselves. Aiden Doyle, a SuperAgent at Strada Real Estate, reported a staggering 1,070 per cent increase in daily seller leads since launching his avatar content. 'It gave me a lot of credibility in the market and a discussion point with clients helping solidify their trust and assurance to work with me,' Doyle said. 'People started to notice me more flagging that they saw me on this campaign advert.' View this post on Instagram A post shared by Property Finder (@propertyfinder) Challenging 'the creative frontiers of AI' In parallel, Property Finder continues to explore the creative frontiers of AI through initiatives such as Tiny Tenant, the region's first AI-generated property podcast voiced by digital characters. Originally designed for consumer engagement, the format is now attracting industry-wide interest from agency owners seeking innovative brand exposure. View this post on Instagram A post shared by Property Finder (@propertyfinder) 'Property Finder as always is ahead of the curve, bridging the gap between technology and creativity. My appearance on the Tiny Tenant podcast goes beyond innovation – it's a stepping stone to a future where we redefine how we connect with our audiences. More customers want bold, forward-thinking experiences and I am excited to be on the journey with Property Finder, to deliver these,' said Kika Pavese, Managing Director at MD Real Estate. This latest campaign cements Property Finder's position as one of the region's most innovative real estate platform, where cutting-edge AI is not just a talking point, but a tool for tangible growth, agent success, and creative disruption.
Mid East Info
08-07-2025
- Business
- Mid East Info
Property Finder partners with the Abu Dhabi Real Estate Centre (ADREC), ahead of Madhmoun launch - Middle East Business News and Information
The region's leading property portal is organising agent training sessions, providing a forum to share best practises, and offering the opportunity for agents to connect with ADREC representatives Dubai, United Arab Emirates, July, 2025: Property Finder, MENA's leading property portal has partnered with the Abu Dhabi Real Estate Centre ADREC to launch a series of agent training initiatives to support the upcoming launch of the Madhmoun platform. Madhmoun, which means 'verified' in Arabic, is Abu Dhabi's first-ever Multiple Listing Service MLS platform and a one-stop solution for all real estate practitioners. These training sessions by Property Finder have been implemented to support agents as they gear up to use the Madhmoun platform from July 7th. The first session held on June 17th, welcomed over 500 agents and featured insights from ADREC representatives. The session offered a pre-launch demonstration of Madhmoun, and gave agents an opportunity to raise questions about the launch. Future sessions will tackle themes including Madhmoun's impact, benefits and guidelines for use, supported by educational materials, co-created video content and FAQs. Cherif Sleiman, Chief Revenue Officer at Property Finder commented 'We applaud ADREC's efforts and offer our complete support as it launches this milestone platform to promote trust by instituting accuracy, availability and authorisation for all listings, ultimately boosting Abu Dhabi's status as a leading real estate hub. While at Property Finder we aspire to change living for good in the region, this is not an isolated effort. We are proud to partner with ADREC to facilitate much needed conversations about the upcoming launch and set up agents for success as they navigate the new platform. We will continue to play an active role in supporting industry stakeholders and home-seekers, as Abu Dhabi undergoes a transformation aimed at elevating trust and transparency in the real estate sector.' Property Finder has a pipeline of events and training activities set up that will continue to support agents and boost transparent conversations. . Post-launch training initiatives are also planned to ensure continued support.
Khaleej Times
07-07-2025
- Business
- Khaleej Times
Dubai Canal sees 58% price appreciation in three years
Dubai's residential market continues to maintain its momentum and post strong year-on-year growth across all key indicators. The first half of 2025 witnessed 98,603 property sales worth Dh326.7 billion, data from DXBInteract shows. The second quarter of 2025 closed with 53,252 property sales transactions, representing a 22 per cent year-on-year increase in volume and a 49 per cent surge in value, reaching Dh184.3 billion, according to data from Property Finder, a real estate portal. Among the most prominent locations in emirate, Dubai Canal is set to evolve into one of Dubai's most distinctive residential corridors, offering a new blend of high end waterfront living within the heart of the city, experts say. Spanning from the Business Bay border to Jumeirah Beach, the Canal creates a unique urban waterfront district with pedestrian pathways and direct access to key areas such as Downtown Dubai, Safa Park and Jumeirah Beach Road. The off plan market along the Dubai Canal has seen a sharp and sustained increase in sold prices over the last three years, rising 58 per cent from Dh2,261 per square foot in 2022 to Dh3,563 per square foot by Q1 2025. This 58 per cent growth signals strong investor confidence in an area that is still largely under development, with many flagship projects yet to complete. 'The Dubai Canal is evolving differently from the broader Dubai market, which is gradually moving into a more mature phase. In contrast, the Canal remains in an early stage of its development cycle, with approximately 70 per cent of its residential supply still under construction. What makes the area stand out is its clear focus on boutique, design-led luxury living,' Hadi Hamra, Managing Partner at Driven Properties, told Khaleej Times. Much of the appreciation has been driven by anticipation of future value, with buyers positioning themselves early in what is shaping up to be a high performing luxury corridor. With new supply relatively constrained and demand from both residents and investors rising, the Canal continues to attract premium pricing on a per square foot basis, particularly for well-designed waterfront assets. Its central location places Dubai Canal firmly within the city's core growth story for luxury real estate. 'Even with price growth, the area still presents diverse options across the spectrum to cater to different budgets. Safa Gate, for instance, is currently delivering excellent value in the off-plan segment, while Canal Front offers strong opportunities in the ready market. What this tells us is that Dubai Canal's appeal and offerings are broad, yet its vision remains hyper focused. As more projects are handed over and the area begins to take shape as a fully activated luxury district, we expect pricing power to shift even further in favour of early investors. With only one-third of the supply currently completed, there's still substantial room for growth, both in capital values and rental yields,' Hamra noted. As projects complete and the area becomes more activated, pricing power is likely to shift further in favour of early investors, reinforcing the Canal's long term potential as a key growth pocket within Dubai's luxury residential landscape. 'In fact, rental rates are already starting to pick up, despite the limited number of completed units. As these numbers begin to rise, we expect rental demand to rise significantly with them. This reinforces the Canal's appeal as a long-term investment hub with robust income-generating potential. If current trends continue, we see strong potential for double-digit returns in the area over the next three years,' Hamra said. 'The Dubai Canal is one of the most strategically positioned and under-appreciated residential corridors in the city today. What we are witnessing is the early phase of a district that will soon rival the most established luxury enclaves in the city. The convergence of branded residences, boutique developments, and walkable, waterfront living is creating a unique value proposition that is attracting both end-users and long-term investors,' Abdullah Alajaji, CEO and founder, Driven Properties, said.
