Minimum Income to Buy A Property

Dubai is one of the leading destinations among people wishing to make a profitable investment or purchase their dream residential home to experience a waterfront lifestyle. More and more 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? While some people prefer ready-to-move-in properties, others choose off-plan projects and take a loan out from the local bank. In this article we will calculate the minimum income you will need to become the owner of an apartment or villa in the most popular and in-demand areas in Dubai.

Why Invest in Dubai Property?

Dubai has been, and still is considered one of the safest cities in the world for several years in a row, according to Numbeo. Moreover, it’s the third safest city in the world for female travellers according to a study released by insurance website InsureMyTrip. And according to The Bucket List Company, Dubai is ranked fourth in the top most Instagrammable travel destinations in the world.

A wide range of job and business opportunities attract outstanding graduates, talented people and professionals from all over the world, as well as the warm climate and the crystal waters of the Arabian Gulf. Moreover, the emirate has become popular due to its successful combat of Covid-19 which included a mass testing strategy and a nationwide vaccination campaign.

If you wish to know more about the process of getting a mortgage in Dubai, Metropolitan Premium Properties real estate agents are always ready to provide you with the latest information. 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.

Note: New visa rules were launched in the UAE on September 5, 2022, which means a long-term permit to stay in the country has become more accessible. For instance, you can get a 10-year Golden Visa for you and your family members even if you purchase an off-plan property or take a loan from the bank. If you wish to move to Dubai or any other emirate, don’t miss the chance to read this article.

Dubai Property Sales in H1 2022

The Dubai real estate market showed impressive numbers via H1 2022. In comparison to H2 2021, the average sales price-per-square-foot has grown by 8% in the affordable property sector, while residential units in the most luxurious areas have risen by 19% in price. Even though the prices continue to increase, Dubai remains one of the most desirable and reasonably-priced locations in the world.

Most prospective buyers are interested in family-friendly areas such as Jumeirah Village Circle, Arabian Ranches, The Springs, Dubailand and DAMAC Hills 2, whilst those wishing to experience a premium lifestyle, choose Business Bay, Downtown Dubai, Palm Jumeirah, Dubai Marina, Dubai Silicon Oasis, Dubai Hills Estate, and Jumeirah Lake Towers. According to the data from the Dubai Land Department (DLD), the total number of transactions in H1 2022 were 14,576, including ready-to-move and off-plan properties, with a total value of AED 33.06B (USD 9B).

What Type of Salary Is Needed to Purchase Property in Dubai?

First-time expat buyers in the UAE have an opportunity to take out a mortgage with only a 20% down payment, borrowing 80% of the purchase price. In this article we will take the average period of a mortgage zt 25 years, with the average fixed interest rate at 3.5%, and the Equated Monthly Income (EMI) not exceeding 25%.

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.

Note: We recommend taking the longest term possible to minimise your monthly instalments. You will always be able to make additional payments, which shouldn’t exceed 10% of the principal without penalty during the course of the loan.

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)

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. 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.

Minimum Income to Purchase Luxury Apartments

Dubai attracts those wishing to become the owner of a residential unit in one of the best upscale areas of the emirate. Among the most popular options are Downtown Dubai, Business Bay and the waterfront area of 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 unit, you might be interested in purchasing a villa in Dubai. 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, as well as 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, and much more.

Note: Purchasing a property in Dubai can be a good investment. Both locals and foreigners are interested in renting a residential unit in the emirate. To learn more about the areas in the emirate, the tenancy agreement and additional costs of renting a property in the emirate, read our Dubai Rental Property Guide.

Minimum Income to Buy Premium Villas

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)

Travel time from all the areas mentioned above to Downtown Dubai takes about 20 minutes. Palm Jumeirah is a dream destination among locals and foreigners aspiring to live within close proximity to the waterfront and to easily get to key attractions around the rest of the emirate. On Palm Jumeirah itself, you will find The Lost Chambers Aquarium, Aquaventure Waterpark and Nakheel Mall. However, your salary should be from AED 172K (USD 47K) per month to keep up with the mortgage repayments. Dubai Hills Estate and Arabian Ranches will be appreciated by those looking for green spaces and golf courses.

How Can We Help?

Our Metropolitan Premium Properties 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.

We can also help you to get a mortgage and provide information concerning Dubai visas. If you plan to make a profitable investment, our real estate agents offer a property management service, which will save you time, as we will solve all problems from finding tenants, concluding agreements, and sending the income made from your property straight to your bank account.