Conversely, there are areas in the country where buying a home proves more cost-effective than leasing
Published: Tue 15 Jul 2025
The UAE’s property market has matured significantly over the years, evolving into a more stable and reliable sector that delivers consistent returns. Driven by an influx of new professionals and wealthy individuals in the post-pandemic period, the market continues its upward trajectory.
Where renting offers better value
According to a recent study by Bloom Holding, eight locations across the UAE currently provide better financial returns for tenants than for homeowners.
Al Marjan Island, an artificial archipelago in Ras Al Khaimah, tops the list. The median monthly mortgage payment in the area is Dh18,782, almost three times the average monthly rent of Dh6,667.
Similar trends are seen in Al Barsha (Dubai) and Al Amerah (Ajman), where the rent-to-mortgage gap exceeds 60 per cent.
In Saadiyat Island, a luxury neighbourhood in Abu Dhabi, renters pay 60.01 per cent less than homeowners. The average rent is Dh14,167, compared to a mortgage of Dh22,669.
Other areas with notable rent-to-mortgage gaps include Muwaileh (Sharjah), Expo City (Dubai), Al Hamra Village (Ras Al Khaimah), and Al Rashidiya (Ajman), with rental savings ranging from 46.44 per cent to 59.23 per cent.
“These areas make renting a financially savvy choice,” said a spokesperson from Bloom Holding.
Where buying a home makes more sense
Conversely, there are areas in the UAE where buying a home proves more cost-effective than renting. Based on Bloom Holding’s research, four communities in Abu Dhabi offer the most compelling advantages for buyers.
Al Reef, a family-oriented community near Zayed International Airport and Al Raha Beach, shows the most significant cost gap. The average monthly rent is Dh7,500 — 37.88 per cent higher than the median mortgage payment of Dh4,659.
In Khalifa City, located near Abu Dhabi International Airport, the median rent stands at Dh11,250 — 19.61 per cent higher than the average mortgage of Dh9,044. While the gap is narrower, the cost benefit of owning remains notable.
In Dubai, two communities also stand out. In Culture Village (Al Jaddaf), the median rent is Dh21,250, compared to a mortgage payment of Dh14,531 — a 31.62 per cent difference. Jumeirah Village Triangle, located between Sheikh Mohammed bin Zayed Road and Al Khail Road, shows a similar trend, with average rent at Dh13,333 versus a mortgage of Dh9,190 – a 31.07 per cent gap.
In Tilal City (Sharjah), renting costs Dh9,167 per month, while a mortgage is Dh8,061 — a 12.07 per cent difference.
Lastly, Al Sawan in Ajman presents a 10.61 per cent gap, with average rent at Dh3,750 and a mortgage at Dh3,352.
