The minimum salary to buy a property in Dubai
Buying a property in Dubai can be a great investment. First of all, you get a home in one of the safest cities in the world that promise you excellent opportunities. Second, you get a property on land that is witnessing great economical growth, so the price of your property can increase in time, which gives you better chances to resell it or rent it out at a high value. For some, buying a property in Dubai sounds like a far-fetched dream. Yet, it might not be so if you learned about the minimum income needed to pursue such a dream. Keep reading along to discover more about the matter.
Factors that play a role in setting a property price in Dubai
Whether the property is situated in a high-end area or not, plays a role in setting the property price. In addition to that, the volume of demand can have a major impact on the price in addition to the location’s being far or close to the main city. Properties in gated communities will tend to cost more.
The type of property
This sounds like stating the obvious. Yet, it is worth mentioning that the price of a property depends on its type. The studio will be less expensive than an apartment or a villa. Moreover, the older properties and less-maintained ones are, of course, the cheaper choice.
The developer of the property
Properties which are built by famous and prestigious developers are usually more expensive than those built by less known ones.
How to Decide the minimum salary to buy a property
In addition to the previous factors mentioned, you need to consider the following while purchasing real estate in Dubai
- The Loan-To-Value (LTV) percentage, down payment, length of the mortgage, interest rate, and Equated Monthly Instalment. (EMI).
- For first-time ex-pat buyers, the LTVs are capped at 80%, and a down payment of 25% of the property’s worth is presumptive.
- The typical mortgage term is 25 years, with an interest rate set at 3.5% and an EMI that cannot be higher than 25% of your monthly income.
- The Dubai Land Department charge, DLD admin fees, title deed issuance fee, mortgage registration fee, mortgage registration admin fee, and agency fee are a few additional possible upfront expenses to be aware of.
General Overview of minimum salary to buy based on the type of property
- You must earn at least AED 15,000 per month if you want to purchase an apartment or house in Dubai. The necessary minimum income to qualify for a mortgage loan is this amount. But bear in mind that this sum might change based on the cost of the property and the loan’s conditions.
- In order to buy an off-plan home in Dubai, you must make at least AED 20,000 per month. This is due to the fact that off-plan homes frequently require a bigger down payment than homes that have already been built.
- Luxury homes in Dubai are typically priced at AED 10 million or more, and prospective purchasers must earn at least AED 100,000 per month to qualify for a mortgage loan.
General Overview of minimum salary to buy based on location
In order to get focus on location, we will assume that you are planning to move to one bedroom apartment.
For a salary of 15K, you can buy a one-bedroom apartment in Business Bay, Jumeirah Village Circle, and Dubai Silicon Oasis.
- The price of this apartment in JVC is around 726K, with a down payment of about 145,200, and the EMI is 2,004.
- The price of this apartment in Business Bay is around 1.2 M, with a down payment of about 245,200, and the EMI is 3,508.
- The price of this apartment in Dubai Silicon Valley is around 492K, with a down payment of about 98,400, and the EMI is 1,358.
- For a salary of 20K, you can buy an apartment in Dubai Downtown. The price of this apartment in Dubai Downtown is around 1.7 M, and a down payment of about 351,200, and the EMI is 4,847.
- For a salary of 30k, you buy a one-bedroom apartment in Palm Jumeirah. The price of this apartment in Palm Jumeirah is around 2.6 M, and a down payment of about 535,200, and the EMI is 7,386.
Bear in mind that the bigger the property or the more luxurious, the higher salary that you will need. Yet, you can purchase a 3-bedroom villa in DAMAC Hills 2 for an average price of AED 1.1M, If your monthly salary is AED 15k. Those earning AED 21k per month can afford a 3-bedroom villa in JVC for an average cost of AED 1.8M. However, to buy a 3-bedroom villa in Dubailand, you must have a minimum salary of AED 22k per month to afford the average sale price of AED 1.9M.
In conclusion, the minimum salary that you need to have to buy an apartment in Dubai depends on the type of property you want to buy, its location, and some other factors like the state of the property and the reputation of the developer of the building it. In general, 15k will be the minimum to buy a home on a budget.
Have you ever considered buying a property in Dubai? Are there any other factors that you took into consideration? Help others who are trying to make the same decision by sharing your view in the comment section down below. As is always the case, we cannot wait to hear from you.