Investment

How Long Until You Break Even?

Transaction costs on both ends mean a Dubai property has to appreciate several percent before a sale clears its costs.

Result
Buying costsAED 127,030
Selling costsAED 45,000
Total round-trip costAED 172,030
As % of price8.6%
Break-even at your growth rate1.7 years

This covers transaction costs only. It excludes service charges, mortgage interest and maintenance across the holding period — all of which push the real break-even further out.

What you need to know

Buying and selling a Dubai property costs roughly 8–9% of the price in round-trip transaction costs: 4% DLD on the way in, agency commission on both ends plus VAT, and assorted fixed charges. That is the hurdle appreciation has to clear before a sale puts you ahead.

At 5% annual growth that takes somewhere around eighteen months to two years. At 3% it is closer to three years. At zero growth you never clear it — which is why flipping only works in a rising market and why short holds are risky in a flat one.

This calculation deliberately excludes carrying costs. Add service charges, mortgage interest and maintenance across the holding period and the true break-even moves out further. If you are buying with a horizon under three years, run those numbers before committing.

Common questions

How much does it cost to buy and sell property in Dubai?

Roughly 8–9% of the price in round-trip transaction costs — 4% DLD, commission on both ends plus VAT, and fixed charges.

How long should I hold a Dubai property?

At typical growth rates, at least two to three years to clear transaction costs. Shorter holds depend entirely on strong appreciation.

Is there capital gains tax in Dubai?

No. The UAE levies no capital gains tax on property, though your home country may still tax the gain.

Want these numbers checked against a real property?

Send us the unit you are looking at and we will run the actual figures — service charge for that building, current market rent, and what comparable units transacted at.

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