Dubai investment math

Cash vs Mortgage Calculator (Dubai)

Pay cash or take a mortgage on a Dubai apartment? Compare total cost, ROI on equity, and opportunity cost of locking up your cash. AED math, Dubai-specific fees baked in.

Inputs

Property price (AED)Down payment (mortgage scenario)25%Mortgage rate4.99%Mortgage tenure25 yearsHolding period10 yearsExpected investment return7.0%

Annual return on alternative investments (S&P 500 long-run avg ~7-9%).

Verdict over 10 years

Mortgage wins by AED 2,863,776

Investment gains on the freed-up capital (7%) outpace the 4.99% mortgage rate.

Cash scenario

Initial cash outlay−AED 2,500,000
Mortgage interest paidAED 0
Investment gains on freed cashAED 0
Net cash positionAED -2,500,000

No interest paid. No investment gains on capital — it's all tied up in the property.

Mortgage scenario

Down payment−AED 625,000
EMI × 120 months−AED 1,314,017
Less: mortgage outstanding at exit−AED 1,385,615
Plus: invested cash future value+AED 3,688,409
Net cash positionAED 363,776

Cash not used as down payment is invested at 7% annual return.