What is the minimum salary required to buy a property in Dubai?
- Why Invest in Dubai
- Upfront Costs to Buy a Property in Dubai
- Minimum Salary Required to Buy a House in Dubai
- FAQs
Are you ready to take the plunge and transition from tenant to homeowner? Now is very much a time that many are considering as optimum for investing in Dubai’s lucrative real estate market. But if you’re worried about those all important figures and whether purchasing a property is a genuinely viable option for you, MyBayut has got you covered! Here’s a rundown of the minimum salary required to buy a property in Dubai.
Please remember that all numbers reported below are based on estimates and may vary in real-life scenarios.
Why Should You Invest in Dubai
Dubai is one of the top-ranking cities in the world, offering an unparalleled lifestyle thanks to its endless array of facilities, attractions, and activities. It also offers an attractive LTV (loan-to-value) ratio. In 2020, the LTV ratio was raised by 5 points for first-time homebuyers and interest rates have been steady as per the policy of the Central Bank of UAE.
Therefore, this is a good time for prospective buyers to enter the property market if they meet the minimum salary for mortgage in Dubai. If you’re wondering what is the minimum salary to buy a house in Dubai, here our calculation for investing in affordable or luxury areas of the city.
Upfront Costs to Buy a Home in Dubai
For this guide on how much salary to buy property in Dubai, we assume that you will take out a home loan to purchase a property in Dubai.
Whether you’re considering a studio or a villa, keep in mind that first-time expat buyers are limited to an 80% Loan-to-Value (LTV) ratio. This means you’ll need a 20% down payment. Emirati buyers typically require a 15% down payment.
We’ll base our calculations on a 25-year mortgage term, a 4% interest rate, and an Equated Monthly Instalment (EMI) that doesn’t exceed 25% of your monthly income. For simplicity, we’ll assume you have no other outstanding loans or debts.
However, bear in mind that aside from the down payment, you will need to pay other upfront costs of purchasing property in Dubai:
- Dubai Land Department fee: 4% of the property value + AED 580 admin fee
- DLD admin fees: AED 2,000 + 5% VAT for properties priced below AED 500,000 | AED 4,000 + 5% VAT for properties priced above AED 500,000
- Title deed issuance fee: AED 520
- Mortgage registration fee: 0.25% of the mortgage value
- Mortgage registration admin fee: AED 290
- Agency fee: 2% of the sale price (plus 5% VAT)
You can read our blog on how much does it cost to buy an apartment in Dubai or any other type of property to learn more.
Please note:
- There could be additional charges by the bank for mortgage processing and property valuation.
- Life insurance is compulsory when taking out a mortgage.
WHAT’S THE MINIMUM SALARY TO GET A MORTGAGE IN DUBAI
The minimum salary you need to buy ready property in Dubai will vary depending on your desired property type and location, since the city is home to affordable and luxurious properties.
We’ll break down the EMI and minimum salary needed for apartments and villas in popular neighbourhoods as ranked in our Dubai Sales Market Report for H1 2024.
You must also bear in mind that most banks in the UAE require a minimum monthly salary of AED 15k to qualify for a home loan, similar to the minimum salary required to take a mortgage loan from the ADCB Dream Home platform.
Please note: the minimum salaries mentioned below are based on the average sales prices for an apartment or villa in a particular community as advertised on Bayut and may vary depending on your chosen property.
Minimum Salary for Home Loan in Dubai – Affordable Apartments
For smaller investors, Dubai boasts a massive portfolio of competitively-priced apartments. Let’s look at the minimum salary needed to buy cheap apartments in Dubai based on salary. Bear in mind that the mortgage spend is under 25% of your monthly salary, with an average interest rate of 4%.
Area | Avg. Sales Price | Down Payment (20%) | EMI (25 years @ 4%) | Min. Monthly Salary |
|---|---|---|---|---|
Area International City | Avg. Sales Price AED 539,000 | Down Payment (20%) AED 107,800 | EMI (25 years @ 4%) AED 2,276 | Min. Monthly Salary AED 9,000 | AED 15,000 |
Area Dubai South | Avg. Sales Price AED 1,418,000 | Down Payment (20%) AED 283,600 | EMI (25 years @ 4%) AED 5,988 | Min. Monthly Salary AED 24,000 |
Area Dubai Production City (IMPZ) | Avg. Sales Price AED 780,000 | Down Payment (20%) AED 156,000 | EMI (25 years @ 4%) AED 3,294 | Min. Monthly Salary AED 13,000 | AED 15,000 |
The table above shows monthly instalments and the minimum salary for a home loan in Dubai if you are considering investing in affordable apartments:
- As you can see, the minimum salary for apartments for sale in International City is AED 9k. However, since many banks do not approve home loans below an AED 15k salary bracket, we have mentioned the same in the table.
- Buying a flat in Dubai Production City will cost around AED 780k, which means you must be earning a minimum of AED 13k to AED 15 per month.
- Also, the average price for buying an apartment in Dubai South is AED 1.4M. Therefore, you must be earning a minimum of AED 24k per month to support monthly instalments.
MINIMUM SALARY NEEDED TO BUY A LUXURY APARTMENT IN DUBAI
Here is the breakdown of the EMI and minimum salary you need to buy luxury apartments in Dubai’s Business Bay, Dubai Marina and Downtown Dubai.
Area | Avg. Sales Price | Down Payment (20%) | EMI (25 years @ 4%) | Min. Monthly Salary |
|---|---|---|---|---|
Area Dubai Marina | Avg. Sales Price AED 2,918,000 | Down Payment (20%) AED 583,600 | EMI (25 years @ 4%) AED 12,322 | Min. Monthly Salary AED 49,000 |
Area Business Bay | Avg. Sales Price AED 2,245,000 | Down Payment (20%) AED 449,000 | EMI (25 years @ 4%) AED 9,480 | Min. Monthly Salary AED 38,000 |
Area Downtown Dubai | Avg. Sales Price AED 4,591,000 | Down Payment (20%) AED 918,200 | EMI (25 years @ 4%) AED 19,386 | Min. Monthly Salary AED 76,000 |
If you’re looking for a property in upscale neighbourhoods – Dubai Marina is the best area to get a luxury apartment with waterfront views! According to our estimates, the minimum salary required to buy an expensive apartment in Dubai is around AED 35k:
- Those earning as much as AED 49k per month can buy flats in Dubai Marina for an average price of AED 2.9M.
- You can buy an apartment in Business Bay worth AED 2.2M on an AED 38k monthly salary.
- Alternatively, those with a monthly minimum salary of AED 76k can buy an apartment in Downtown Dubai at an average cost of AED 4.5M.
Furthermore, you can look at apartment sale transactions in Dubai over the past twelve months. This can help you access the minimum salary required to buy a property in Dubai.
How Much Deposit to Buy House in Dubai – Affordable Villas
Need a big home without a big price tag? Our top affordable villa options are just what you’re looking for.
If you are wondering how much salary is required for a home loan in Dubai, look below!
Area | Avg. Sales Price | Down Payment (20%) | EMI (25 years @ 4%) | Min. Monthly Salary |
|---|---|---|---|---|
Area DAMAC Hills 2 | Avg. Sales Price AED 2,145,000 | Down Payment (20%) AED 429,000 | EMI (25 years @ 4%) AED 9,058 | Min. Monthly Salary AED 36,000 |
Area Dubailand | Avg. Sales Price AED 3,278,000 | Down Payment (20%) AED 655,600 | EMI (25 years @ 4%) AED 13,842 | Min. Monthly Salary AED 55,000 |
Area The Valley by Emaar | Avg. Sales Price AED 2,570,000 | Down Payment (20%) AED 514,000 | EMI (25 years @ 4%) AED 10,852 | Min. Monthly Salary AED 43,000 |
Suburban communities such as DAMAC Hills 2, Dubailand and The Valley by Emaar are some of the most popular options. Nevertheless, the good news is that you can afford to buy a house in Dubai with a minimum salary range of AED 36k to AED 55k:
- If your monthly salary is AED 36k, you can buy a villa in DAMAC Hills 2 for an average price of AED 2.1M.
- Those who earn AED 43k per month can afford to purchase a villa in The Valley by Emaar.
- To afford a villa for sale in Dubailand you need to earn a minimum salary of AED 55k per month.
Minimum Salary Required to Buy a Property in Dubai – Luxury Villas
Area | Avg. Sales Price | Down Payment (20%) | EMI (25 years @ 4%) | Min. Monthly Salary |
|---|---|---|---|---|
Area Dubai Hills Estate | Avg. Sales Price AED 13,909,000 | Down Payment (20%) AED 2,781,800 | EMI (25 years @ 4%) AED 58,733 | Min. Monthly Salary AED 235,000 |
Area Arabian Ranches | Avg. Sales Price AED 9,543,000 | Down Payment (20%) AED 1,908,600 | EMI (25 years @ 4%) AED 40,297 | Min. Monthly Salary AED 161,000 |
Area DAMAC Hills | Avg. Sales Price AED 9,186,000 | Down Payment (20%) AED 1,837,200 | EMI (25 years @ 4%) AED 38,790 | Min. Monthly Salary AED 155,000 |
If you’re interested in buying an upscale 4-bedroom home in Dubai, you need a monthly salary ranging from AED 155k to AED 235k:
- Houses for sale in Dubai Hills Estate require buyers to have a monthly salary of at least AED 235k as the average price for a villa goes up to AED 13.9M!
- Similarly, you can get an upscale villa for sale in Arabian Ranches if you earn as much as AED 161k monthly. The average cost of a house in the community is AED 9.5M.
- An opulent villa for sale in DAMAC Hills averaging AED 9.1M, requires a minimum salary of AED 155k.
Go through recent villa sales transactions in Dubai to better understand the market. It can also give you an idea about the minimum salary required to buy a property in Dubai.
Please note that the 80% LTV ratio applies to properties that are worth under AED 5 million. For properties valued above AED 5 million, the LTV is lower.
FREQUENTLY ASKED QUESTIONS
WHAT IS THE MINIMUM DOWN PAYMENT ON BUYING A HOUSE IN DUBAI?
Buyers must put up a down payment of at least 20% of the total property value. The down payment required will differ if you are purchasing your second or third property, or are investing in an off-plan property. So, it’s better to save up for a down payment in Dubai to get your property!
WHAT IS THE MINIMUM SALARY TO BUY A FLAT IN DUBAI?
While most Dubai banks require a minimum monthly salary of AED 15,000 for a mortgage, specific requirements can vary.
When it comes to affordability, you can find apartments in budget-friendly areas with a monthly income of AED 10k to AED 13k. However, for more upscale neighbourhoods, you’ll need a minimum monthly income of around AED 38k.
CAN EXPATS GET A MORTGAGE IN DUBAI?
Yes, expat residents in Dubai can certainly apply for a mortgage! However, there are certain criteria you must meet when applying for a mortgage in Dubai. The criteria for mortgage eligibility may vary for different banks. This includes the minimum salary for home loan in Dubai.
That concludes our guide on how much salary is required to buy property in Dubai. As you can see, Dubai’s diverse property market offers several options for buyers.
If you plan to buy a property with a mortgage, it’s essential to get pre-approval before starting your home search. And we’ve got good news for you: property seekers can get an instant, free mortgage pre-approval in Dubai through the Bayut-ADCB Dream Home Platform!
Once you’ve found your dream home on Bayut, here’s how to go about buying property in Dubai. If you’re a first-time buyer, familiarising yourself with the process can be useful.
As an expat, you can only purchase properties in designated freehold areas in Dubai. This includes popular neighbourhoods, such as Dubai Marina, Downtown Dubai, Palm Jumeirah and more.
For more information and updates, stay tuned to MyBayut.
