What is the minimum salary required to buy a property in Dubai
- Why Invest in Dubai?
- How to Calculate the Minimum Salary?
- Salary Requirements for Property Purchases with Mortgage
- FAQs
Are you ready to take the plunge and transition from tenant to homeowner? This is the time to think about investing in Dubai’s lucrative real estate market. But if you’re worried about the math, we’ve got you covered! Here’s a rundown of the minimum salary required to buy a property in Dubai.
Please keep in mind that all numbers reported below are based on estimates and may largely vary in real-life scenarios.
WHY SHOULD YOU INVEST IN DUBAI?
Dubai is one of the top-ranking cities in the world that offers an unparalleled lifestyle, thanks to its endless array of facilities, attractions and activities.
Dubai also offers an attractive LTV (loan-to-value) ratio. 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 and make the most of the mortgage affordability in Dubai.
If you’re keen to know, “Where can I buy property in Dubai based on salary?”, we have calculated the minimum salary needed to buy a property in the city.
HOW DO WE CALCULATE THE MINIMUM SALARY TO BUY A PROPERTY IN DUBAI?
For this guide, we assume that you will take out a home loan for your property purchase in Dubai.
Want a studio to buy in Dubai or a villa? Now consider the fact that the current LTVs are capped at 80% for first-time expat buyers. Our calculations are based on the assumption that you have the 20% down payment for your desired property saved up. For Emiratis the down payment percentage is 15%.
Moreover, we will take your mortgage tenure to be 25 years, the average fixed interest rate as 3.5% and the EMI (Equated Monthly Instalment) not exceeding 25% of your monthly income. For the sake of calculations, we also assume that you have no existing loans or debts to repay at the time of acquiring mortgage.
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
- 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)
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 both 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 Q3, 2023.
You must also bear in mind that most banks in the UAE require you to have 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 NEEDED TO BUY AN AFFORDABLE APARTMENT IN DUBAI
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 set at under 25% of your monthly salary with an average interest rate of 3.5%.
LOCATION | AVERAGE SALES PRICE (1-BED APT) | DOWN PAYMENT (20%) | EMI (25-YEAR TENURE @ 3.5%) | MINIMUM MONTHLY SALARY |
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LOCATION Jumeirah Village Circle | AVERAGE SALES PRICE (1-BED APT) AED 863,000 | DOWN PAYMENT (20%) AED 172,600 | EMI (25-YEAR TENURE @ 3.5%) AED 3,456 | MINIMUM MONTHLY SALARY AED 15,000 |
LOCATION Dubai Silicon Oasis | AVERAGE SALES PRICE (1-BED APT) AED 541,000 | DOWN PAYMENT (20%) AED 108,200 | EMI (25-YEAR TENURE @ 3.5%) AED 2,167 | MINIMUM MONTHLY SALARY AED 15,000 |
LOCATION Jumeirah Lake Towers | AVERAGE SALES PRICE (1-BED APT) AED 1,279,000 | DOWN PAYMENT (20%) AED 255,800 | EMI (25-YEAR TENURE @ 3.5%) AED 5,122 | MINIMUM MONTHLY SALARY AED 20,500 |
- As you can see, those earning a minimum monthly salary of AED 15k can comfortably afford to buy 1-bedroom apartments in Jumeirah Village Circle (JVC). The average price of a 1-BHK flat for sale in JVC is AED 863k.
- The monthly instalments and salary requirement decreases if you choose to buy a 1-bedroom apartment in Dubai Silicon Oasis, where the average price of a 1-bed apartment is AED 541k.
- Jumeirah Lake Towers is another popular area with affordable apartments for sale. You can buy a 1-bedroom apartment in JLT for an average price of AED 1.2M, with a minimum salary of AED 20,500.
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.
LOCATION | AVERAGE SALES PRICE (1-BED APT) | DOWN PAYMENT (20%) | EMI (25-YEAR TENURE @ 3.5%) | MINIMUM MONTHLY SALARY |
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LOCATION Dubai Marina | AVERAGE SALES PRICE (1-BED APT) AED 1,596,000 | DOWN PAYMENT (20%) AED 319,200 | EMI (25-YEAR TENURE @ 3.5%) AED 6,392 | MINIMUM MONTHLY SALARY AED 26,000 |
LOCATION Business Bay | AVERAGE SALES PRICE (1-BED APT) AED 1,607,000 | DOWN PAYMENT (20%) AED 321,400 | EMI (25-YEAR TENURE @ 3.5%) AED 6,436 | MINIMUM MONTHLY SALARY AED 26,000 |
LOCATION Downtown Dubai | AVERAGE SALES PRICE (1-BED APT) AED 2,010,000 | DOWN PAYMENT (20%) AED 402,000 | EMI (25-YEAR TENURE @ 3.5%) AED 8,050 | MINIMUM MONTHLY SALARY AED 32,500 |
If you’re looking at upscale neighbourhoods – Dubai Marina is the best area to get a luxury apartment with waterfront views! According to our estimates, the minimum salary required for buying an expensive apartment in Dubai is around AED 15k.
- Those earning as much as AED 26k per month can get 1-bedroom flats for sale in Dubai Marina for an average price of AED 1.5M.
- Business Bay is another upscale neighbourhood that offers lucrative investment properties within the same salary bracket. You can buy a 1-BHK apartment in Business Bay for an average price of AED 1.6M.
- Alternatively, those with a monthly minimum salary of AED 32.5k can buy a 1-bedroom apartment in Downtown Dubai at an average cost of AED 2M.
You can take a look at apartment sale transactions in Dubai over the past twelve months for greater insights about the property market. This can help you access the minimum salary required to buy a property in Dubai.
HOW MUCH DO YOU NEED TO EARN TO BUY AN AFFORDABLE VILLA IN DUBAI?
Keen on purchasing a spacious home for your family, but want to stick to a budget?
LOCATION | AVERAGE SALES PRICE (1-BED APT) | DOWN PAYMENT (20%) | EMI (25-YEAR TENURE @ 3.5%) | MINIMUM MONTHLY SALARY |
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LOCATION DAMAC Hills 2 | AVERAGE SALES PRICE (1-BED APT) AED 1,398,000 | DOWN PAYMENT (20%) AED 279,600 | EMI (25-YEAR TENURE @ 3.5%) AED 5,599 | MINIMUM MONTHLY SALARY AED 22,500 |
LOCATION Jumeirah Village Circle | AVERAGE SALES PRICE (1-BED APT) AED 2,620,000 | DOWN PAYMENT (20%) AED 524,000 | EMI (25-YEAR TENURE @ 3.5%) AED 10,493 | MINIMUM MONTHLY SALARY AED 42,000 |
LOCATION Al Furjan | AVERAGE SALES PRICE (1-BED APT) AED 3,092,000 | DOWN PAYMENT (20%) AED 618,400 | EMI (25-YEAR TENURE @ 3.5%) AED 13,735 | MINIMUM MONTHLY SALARY AED 55,000 |
Suburban communities such as DAMAC Hills 2, JVC and Al Furjan are some of the most popular options. The good news is that you can afford to buy a house in Dubai with a minimum salary range of AED 22.5k to AED 55k.
- If your monthly salary is AED 22.5k, you can buy a 3-bedroom villa in DAMAC Hills 2 for an average price of AED 1.3M.
- Those who earn AED 42k per month can afford to purchase a 3-bedroom villa in JVC for an average cost of AED 2.6M.
- To buy 3-bedroom villas in Al Furjan you need to have a minimum salary of AED 55k per month to afford the AED 3M average sale price.
- 2 BEDS
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- 3 BATHS
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- 2488 SQFT
- 2 BEDS
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- 3 BATHS
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- 1391 SQFT
- 2 BEDS
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- 2 BATHS
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- 1030 SQFT
- 1 BED
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- 2 BATHS
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- 909 SQFT
- 2 BEDS
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- 3 BATHS
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- 1406 SQFT
MINIMUM SALARY YOU NEED TO BUY LUXURY HOUSES IN DUBAI
LOCATION | AVERAGE SALES PRICE (1-BED APT) | DOWN PAYMENT (20%) | EMI (25-YEAR TENURE @ 3.5%) | MINIMUM MONTHLY SALARY |
---|---|---|---|---|
LOCATION Arabian Ranches | AVERAGE SALES PRICE (1-BED APT) AED 7,251,000 | DOWN PAYMENT (20%) AED 1,450,200 | EMI (25-YEAR TENURE @ 3.5%) AED 29,041 | MINIMUM MONTHLY SALARY AED 116,500 |
LOCATION Dubai Hills Estate | AVERAGE SALES PRICE (1-BED APT) AED 7,428,000 | DOWN PAYMENT (20%) AED 1,485,600 | EMI (25-YEAR TENURE @ 3.5%) AED 29,749 | MINIMUM MONTHLY SALARY AED 119,000 |
LOCATION DAMAC Hills | AVERAGE SALES PRICE (1-BED APT) AED 3,776,000 | DOWN PAYMENT (20%) AED 755,200 | EMI (25-YEAR TENURE @ 3.5%) AED 15,123 | MINIMUM MONTHLY SALARY AED 60,500 |
If you’re interested in buying an upscale 4-bedroom home in Dubai, you need a monthly salary ranging from AED 60k to AED 119k.
- You can get an upscale 4-bedroom villa in the family-friendly community Arabian Ranches if you earn as much as AED 116k per month. The average cost of a 4-bed house in the community is AED 7.5M.
- Similarly, the luxurious 4-bed houses for sale in Dubai Hills Estate require buyers to have a monthly salary of at least AED 119k, when buying property in Dubai with a mortgage. Home-seekers can buy a 4-bed house in the community for an average price of AED 7.4M.
- An opulent 4-bedroom villa for sale in DAMAC Hills averaging at AED 3.7M, requires a minimum salary of AED 60.5k.
Go through recent villa sales transactions in Dubai to get a better understanding of 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.
- 3 BEDS
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- 4 BATHS
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- 2675 SQFT
- 5 BEDS
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- 6 BATHS
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- 4260 SQFT
- 4 BEDS
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- 4 BATHS
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- 2749 SQFT
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 own property!
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 required for home loan in Dubai.
That concludes our guide to the minimum salary you need to buy a property in Dubai. As you can see, Dubai’s diverse property market offers options for buyers. The minimum salary required for home loan in Dubai is AED 15k. It can go up to AED 120k depending on the property!
Now that you know the answer to the question what is the minimum salary to buy a house in Dubai, it may be time to start researching different options.
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, go through the legal steps to buy a property in Dubai. If you’re a first-time buyer, it’s best to familiarise yourself with the process.
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.