What is the minimum income needed to buy a property in Dubai?
Are you thinking about making the move from renting to owning a home? Many people are currently exploring the potential of Dubai’s thriving real estate market. If you’re concerned about the financial aspects and whether buying property is a realistic possibility for you, iconre offers valuable insights. Here’s a summary what is the minimum income you’ll need to purchase property in Dubai.
It’s important to note that the numbers provided are estimates and actual results may differ.
Why Should You Invest in the Dubai Real Estate Market?
Dubai is one of the top-ranking among the world’s leading cities, providing an exceptional lifestyle with a vast selection of amenities, attractions, and experiences. Its attractive loan-to-value (LTV) ratios further enhance its appeal. In 2020, first-time home buyers benefited from a 5-point increase in the LTV ratio, while interest rates have remained stable in accordance with the Central Bank of UAE’s policies.
Those considering purchasing property in Dubai now present a favourable opportunity, provided they meet the minimum salary requirements for a mortgage. If you’re curious about the necessary income to buy a home in Dubai, we’ve outlined the calculations for investing in both affordable and upscale areas of the city.
The upfront cost of buying a home in Dubai
This guide on determining the necessary salary for buying property in Dubai assumes you’ll be using a home loan for the purchase.
Whether you’re interested in a studio apartment or a villa, it’s important to know that first-time expat buyers generally face a maximum Loan-to-Value (LTV) ratio of 80%. This translates to a required down payment of 20%. For Emirati buyers, the typical down payment is 15%.
Our calculations will be based on a 25-year mortgage, a 4% interest rate, and a monthly mortgage payment (EMI) that stays within 25% of your gross monthly income. For the sake of simplicity in our examples, we’ll assume you have no other existing loans or debts.
A common question is: what’s the lowest income needed to buy a home in Dubai?
However, Keep in mind that buying real estate in Dubai may require some additional upfront costs beyond the down payment:
- When purchasing property in Dubai, the Dubai Land Department (DLD) imposes a fee equivalent to 4% of the property’s assessed value, along with a separate administrative charge of AED 580.
- The DLD’s administrative fees are structured as follows: properties below AED 500,000 are subject to a fee of AED 2,000 plus 5% VAT, while properties at or above AED 500,000 incur a fee of AED 4,000 plus 5% VAT.
- The fee for the issuance of a title deed is AED 520.
- Registering a mortgage requires a payment equal to 0.25% of the total mortgage value.
- An administrative fee of AED 290 is associated with the mortgage registration process.
- The standard agency fee for property transactions is 2% of the agreed-upon sale price, plus 5% Value Added Tax (VAT).
Want to know how much it costs to buy an apartment or other property in Dubai? Visit our blog for details.
Please note:
- Your bank may apply fees for mortgage processing and property valuation services.
- Mortgage lenders typically require life insurance as a condition of the loan.
Please note:The minimum salary figures presented below are calculated using the average advertised sales prices of apartments and villas within specific communities, as listed on Luxury Spaces. These figures are subject to change depending on the property you select.
Dubai Home Loan: What is the minimum income required for an affordable apartment?
If you’re a smaller investor looking at Dubai, you’ll find plenty of competitively priced apartments. This guide will help you determine the minimum salary you need to purchase one of these properties. Our calculations are based on keeping mortgage payments under 25% of your monthly salary, with a typical 4% interest rate.
Area |
Avg. Sales Price |
Down Payment (20%) |
EMI (25 years @ 4%) |
Min. Monthly Salary |
|---|---|---|---|---|
International City
|
AED 539,000
|
AED 107,800
|
AED 2,276
|
AED 9,000 | AED 15,000
|
Dubai South
|
AED 1,418,000
|
AED 283,600
|
AED 5,988
|
AED 24,000
|
Dubai Production City (IMPZ)
|
AED 780,000
|
AED 156,000
|
AED 3,294
|
AED 13,000 | AED 15,000
|
If you’re planning to buy an affordable apartment in Dubai with a home loan, the table above provides information on monthly instalments and minimum salary requirements.
- Apartments for sale in International City have a minimum salary requirement of AED 9,000. However, because many banks require a minimum salary of AED 15,000 for home loan approvals, we’ve reflected that higher figure in our data.
- To purchase a flat in Dubai Production City, which costs approximately AED 780,000, a monthly income of AED 13,000 to AED 15,000 is generally necessary.
- With the average apartment price in Dubai South being AED 1.4 million, a monthly salary of at least AED 24,000 is typically required to manage the mortgage payments.
International City offers excellent investment opportunities in the affordable apartment.
Dubai Luxury Apartment Purchase: Minimum Income Requirements
Find below a detailed breakdown of the EMI payments and minimum income necessary to acquire a luxury apartment in Dubai’s Business Bay, Dubai Marina, and Downtown Dubai.
Area |
Avg. Sales Price |
Down Payment (20%) |
EMI (25 years @ 4%) |
Min. Monthly Salary |
|---|---|---|---|---|
Dubai Marina
|
AED 2,918,000
|
AED 583,600
|
AED 12,322
|
AED 49,000
|
Business Bay
|
AED 2,245,000
|
AED 449,000
|
AED 9,480
|
AED 38,000
|
Downtown Dubai
|
AED 4,591,000
|
AED 918,200
|
AED 19,386
|
AED 76,000
|
If a luxury apartment with stunning waterfront views in a desirable Dubai neighborhood is what you’re after, Dubai Marina is an ideal choice. We estimate that a monthly income of at least AED 35,000 is generally required to buy a top-tier apartment in this sought-after area.
- The Dubai Marina property market offers apartments at an average cost of AED 2.9 million, making them attainable for those with a monthly income of approximately AED 49,000.
- In Business Bay, apartments are available for purchase at an average price of AED 2.2 million, which is within reach for individuals earning around AED 38,000 per month.
- Downtown Dubai’s property market features apartments averaging AED 4.5 million, suitable for buyers with a monthly income of AED 76,000 or more.
Furthermore, Understanding the minimum salary required to buy property in Dubai can be seen by looking at apartment sales transactions from the previous year.
What's the required down payment for purchasing a budget-friendly villa in Dubai?
Dreaming of a big house but worried about the cost? Our affordable villas might be exactly what you need.
If you’re asking yourself what salary you need for a home loan in Dubai, check out the information below.
Popular suburban choices include DAMAC Hills 2, Dubailand, and The Valley by Emaar, but Dubai also offers affordable homeownership opportunities for those earning between AED 36,000 and AED 55,000.
- if your monthly income of approximately AED 36,000, you can make owning a villa in DAMAC Hills 2, with an average price of AED 2.1 million, a realistic possibility.
- Prospective homeowners earning around AED 43,000 per month could consider purchasing a villa in Emaar’s The Valley.
- Dubailand villas generally require a minimum monthly salary of roughly AED 55,000 to be within reach for buyers.
Minimum Income Requirements for the Purchase of Luxury Villas in Dubai
Area |
Avg. Sales Price |
Down Payment (20%) |
EMI (25 years @ 4%) |
Min. Monthly Salary |
|---|---|---|---|---|
Dubai Hills Estate
|
AED 13,909,000
|
AED 2,781,800
|
AED 58,733
|
AED 235,000
|
Arabian Ranches
|
AED 9,543,000
|
AED 1,908,600
|
AED 40,297
|
AED 161,000
|
DAMAC Hills
|
AED 9,186,000
|
AED 1,837,200
|
AED 38,790
|
AED 155,000
|
If you want to purchase a luxurious four-bedroom house in Dubai, A monthly salary of AED 155,000 to AED 235,000 is generally required to buy a high-end four-bedroom house in Dubai.
- The average villa price in Dubai Hills Estate is AED 13.9 million, necessitating a minimum monthly income of AED 235,000 for potential buyers.
- In Arabian Ranches, securing a luxury villa, typically priced around AED 9.5 million, requires a monthly salary of AED 161,000 or more.
- For those considering villas in DAMAC Hills, where the average price is AED 9.1 million, a minimum monthly income of AED 155,000 is required.
In Dubai, a minimum salary of approximately AED 15,000 is needed to purchase a home.
By looking at recent villa sales in Dubai, you can gain a better understanding of the market and get a sense of the income you’d need to buy a property.
Note: The maximum loan-to-value (LTV) ratio is 80% for properties with a value of up to AED 5 million. For properties valued above AED 5 million, a reduced LTV applies.
FAQS
How much of a down payment is minimally required to buy a house in Dubai?
A minimum down payment of 20% of the total property value is generally required for purchasers. However, this requirement is subject to change based on factors such as whether the purchase constitutes a second or third property acquisition, or if the property is categorized as off-plan. Accordingly, accumulating sufficient funds for a down payment is a critical step in the Dubai property market.
What is the minimum salary to buy a flat in dubai?
A monthly salary of AED 15,000 is often the minimum requirement for a mortgage from Dubai banks, though this can change depending on the bank.
With a monthly income between AED 10,000 and AED 13,000, you can find apartments in more budget-conscious areas. For higher-end locations, a monthly income closer to AED 38,000 is usually needed.