Minimum Income to Buy A Property in Dubai
Introducing
Dubai is one of the most lucrative cities in the world for real estate investments, but how much salary do you need to purchase an apartment or villa? Many people are interested in buying a property here and one of the key questions is how much salary is needed to purchase a residential unit in Dubai. This article will help you calculate the minimum income you will need to become an owner of an apartment or villa in the most popular and in-demand areas in Dubai.
Why Invest in Dubai Property?
Dubai is a popular destination, and considered one of the safest cities in the world. It’s ranked #3 for female travellers, according to a study conducted by InsureMyTrip. And according to The Bucket List Company, Dubai is ranked fourth in the top most Instagram able travel destinations in the world!
Dubai has a wide range of job and business opportunities that attract outstanding graduates, talented people and professionals from all over the world. The emirate is also known for its warm climate, crystal waters of the Arabian Gulf and its successful combat of Covid-19 which included a mass testing strategy and a nationwide vaccination campaign.
Good Reputation Real Estate agents will help you to get a mortgage in Dubai. We work with major banks, including RAK Bank, Commercial Bank Dubai and Dubai Islamic Bank. Our specialists will gather all the necessary documents, put together your credit history, verify your income and help you to get a mortgage.
What Type of Salary Is Needed to Purchase Property in Dubai?
Aside from the down payment, keep in mind that you will need to pay the following upfront costs:
- Dubai Land Department Fee, which is 4% of the property value
- DLD Admin Fee, which is AED 4K (USD 1.1K) + 5% VAT
- Title Deed Insurance Fee which is AED 520 (USD 140)
- Mortgage Registration Fee, which costs 0.25% of its value
- Mortgage Registration Admin Fee with a cost of AED 290 (USD 80)
- Agency Fee, which is 2% of the sale price + 5% VAT
- Life insurance, which is compulsory while taking a mortgage
- Additional charges by the bank for mortgage processing and more.
Minimum Salary to Take Out A Loan
The minimum income that is required for taking out a loan depends on the property you are going to choose. The majority of banks would prefer an applicant to have a minimum salary of AED 15K (USD 4K) per month. However, some banks approve those with a salary of AED 10K (USD 2.7K) per month. This can vary from bank to bank and location to location, so it’s important to check with your preferred mortgage broker as they will be able to provide advice specific to your circumstances and requirements
Minimum Income to Buy Affordable Apartments in Dubai
Among the most budget friendly locations across Dubai are areas such as Jumeirah Village Circle, Jumeirah Lake Towers and Dubai Silicon Oasis
Jumeirah Village Circle:
Average price for a 1-bedroom apartment – AED 665K (USD 181K);
- Down payment (20%) – AED 133K (USD 36K)
- EMI – AED 1.8K (USD 500)
- Minimum monthly salary – AED 10K (USD 2.7K)
Jumeirah Lake Towers:
- Average price for a 1-bedroom apartment – AED 808K (USD 220K)
- Down payment (20%) – AED 161K (USD 44K).
- EMI – AED 2.2K (USD 607).
- Minimum monthly salary – AED 10K (USD 2.7K).
Dubai Silicon Oasis:
- Average price for a 1-bedroom apartment – AED 468K (USD 127K)
- Down payment (20%) – AED 94K (USD 26K)
- EMI – AED 1.3K (USD 350)
- Minimum monthly salary – AED 10K (USD 2.7K)
The average price of a 1-bedroom unit in Jumeirah Village Circle is AED 665K (USD 181K), and this area is quite popular among citizens and expats, wishing to live away from the hustle and bustle of Downtown Dubai. A salary of AED 10K (USD 2.7K) per month will be enough to become an owner of an apartment in these areas. However, keep in mind that it might be difficult to get a mortgage with such income
Minimum Income to Purchase Luxury Apartments
Dubai is home to some of the world’s most luxurious residential areas and residential developments. The emirate attracts buyers who wish to own a property in one of these upscale parts of Dubai, such as Downtown Dubai, Business Bay and Dubai Marina.
Downtown Dubai:
- Average price for a 1-bedroom apartment – AED 1.54M (USD 419K)
- Down payment (20%) – AED 308K (USD 84K).
- EMI – AED 4.3K (USD 1,2K).
- Minimum monthly salary – AED 18K (USD 5K).
Business Bay:
- Average price for a 1-bedroom apartment – AED 468K (USD 127K)
- Down payment (20%) – AED 209K (USD 57K)
- EMI – AED 2.9K (USD 785)
- Minimum monthly salary – AED 12K (USD 3.3K)
Dubai Marina:
- Average price for a 1-bedroom apartment – AED 1.21M (USD 329K).
- Down payment (20%) – AED 242K (USD 66K).
- EMI – AED 3.3K (USD 910).
- Minimum monthly salary – AED 15K (USD 4K).Downtown Dubai is a desirable destination among those wishing to live within close proximity to The Dubai Mall, the Burj Khalifa and other landmarks in the emirate. However, to obtain a loan for properties in these types of areas, your salary should be at least AED 18K (USD 5K) per month. Units in Business Bay, which is the business hub of Dubai, as well as Dubai Marina, which is popular among tourists and expats due to its huge range of entertainment activities in the surroundings such as The Walk, The Beach, Ain Dubai and Dubai Marina Mall, are a bit more affordable.
Minimum Income to Purchase Luxury Apartments
If you have a big family, or are looking for a spacious property in Dubai, then you might be interested in purchasing a villa. The more affordable villas can be found in areas such as DAMAC Hills 2, Dubailand and Jumeirah Village Circle.
DAMAC Hills 2:
- Average price for a 3-bedroom villa – AED 1.08M (USD 294K)
- Down payment (20%) – AED 216K (USD 59K)
- EMI – AED 3K (USD 817)
- Minimum monthly salary – AED 12K (USD 3.3K)
Dubailand:
- Average price for a 3-bedroom villa – AED 1.77M (USD 482K)
- Down payment (20%) – AED 354K (USD 96K)
- EMI – AED 4.9K (USD 1,3K)
- Minimum monthly salary – AED 20K (USD 5.4K)
Jumeirah Village Circle:
- Average price for a 3-bedroom villa – AED 2M (USD 545K)
- Down payment (20%) – AED 401K (USD 109K)
- EMI – AED 5.5K (USD 1.5K)
- Minimum monthly salary – AED 23K (USD 6.3K)A 3-bedroom villa is the perfect option for families with children, or couples wishing to experience a tranquil lifestyle. The most affordable villas can be found in DAMAC Hills 2, which is a developing community where you will get access to Malibu Beach, sports facilities including tennis and basketball courts, jogging and cycling tracks, as well as many restaurants and supermarkets nearby.
Minimum Income to Buy Premium Villas
The Dubai real estate market is booming, especially in the residential sector. If you want to experience an ultra-luxurious lifestyle in a spacious residential unit, you should keep an eye on the following areas – Palm Jumeirah, Arabian Ranches and Dubai Hills Estate.
Dubai Hills Estate:
- Average price for a 4-bedroom villa – AED 4.5M (USD 1.2M)
- Down payment (20%) – AED 903K (USD 246K)
- EMI – AED 12.5K (USD 3.4K)
- Minimum monthly salary – AED 50K (USD 13.6K)
Arabian Ranches:
- Average price for a 4-bedroom villa – AED 4.6M (USD 1.3M)
- Down payment (20%) – AED 924K (USD 252K)
- EMI – AED AED 12.8K (USD 3.5K)
- Minimum monthly salary – AED 52K (USD 14.2K)
Palm Jumeirah:
- Average price for a 4-bedroom villa – AED 15.6M (USD 4.2M)
- Down payment (20%) – AED 3.1M (USD 844K)
- EMI – AED AED 43K (USD 11.7K)
- Minimum monthly salary – AED 172K (USD 47K)
When you talk about the most expensive places to live in Dubai, Palm Jumeirah is always at the top of the list. The popularity of this place among locals and foreigners aspiring to live within close proximity to the waterfront is due to it being home to some of the best shopping malls and tourist attractions in Dubai like The Lost Chambers Aquarium, Aquaventure Waterpark and Nakheel Mall. Your salary should be around AED 172K (USD 47K) per month if you want to keep up with mortgage repayments.
How Can We Help?
Our Good Reputation Real Estate professionals are always ready to provide you with the latest information concerning the real estate market in Dubai. We can assist you in choosing a property, corresponding to your budget and needs, as well as prepare all the necessary documents and lead you until the end of transaction.