Is it cheaper to rent or buy a home in the UAE?

Pocketful of Dirhams

The UAE property market is buoyant once again after changes to mortgage rules and new visa programmes for expatriate retirees and foreign investors boosted sentiment in the sector. Dubai property transactions hit their highest level since 2010 in the first quarter of this year, according to ValuStrat. The positivity in the market is encouraging many first-time buyers to snap up a home at a time when prices are still affordable and interest rates remain low.
But with many residents in the UAE still choosing to rent, how do they decide which is the most cost-effective option over the long term? While renters can walk away without the worry of clearing a mortgage, they also lose the money they have paid to a landlord during their time in a property. In turn, for buyers looking to get on to the property ladder, raising a deposit can be a big financial challenge.
Host Alice Haine is joined by Ben Crompton, managing partner of Crompton Partners Abu Dhabi, who guides listeners through the different options.