BusinessThe Least Required Income For Purchasing Real Estate in...

The Least Required Income For Purchasing Real Estate in Dubai

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Dubai is a promising destination among people who want to own their ideal home to witness a waterfront living or those wishing to make a lucrative investment. Even more people are interested in owning real estate here, but no one knows how much income is required to own a property in the city.

While some people prefer to buy ready-to-move-in units in Dubai, and other select off-plan properties by taking a loan from the local banks. In this blog, we will share the minimum salary you need to earn to be eligible for taking a loan and in turn becoming an owner of a villa or flat in the most demanding and famous districts in the Emirate.

Plenty of business and job opportunities attract talented individuals, stellar graduates, and professionals from different countries, along with the crystal waters of Arabian Gulf and warm climate. If you want to learn the procedure for securing a mortgage in the city, this guide will offer the basic information.

Dubai Real Estate Sales in H1 2022

The real estate market in the city revealed praiseworthy figures through H1 2022. As opposed to H2 2022, the average price per square foot sales increased by 8% in the budget-friendly properties, whereas the residential homes in posh regions have risen by 19%. Although the costs are increasing, the Emirate is still a highly appealing and affordably priced city in the world.

The interested buyers of family-oriented prefer areas like Damac Hills 2, Jumeirah Village Circle, Dubailand, Arabian Ranches, and Then Springs. Whereas the ones interested in an extravagant lifestyle choose Jumeirah Lake Towers, Business Bay, Dubai Hills Estate, Downtown Dubai, Dubai Silicon Oasis, Dubai Marina, and Palm Jumeirah.

As per the data from Dubai Land Department, the number of transactions in H1 2022 were 14,576. This includes both off-plan and ready-to-move-in units, with a value of AED 33 billion.

What Kind Of Salary Is Required to Buy Real Estate in Dubai?

Inexperienced expat buyers in the UAE have a golden chance to take a mortgage with just 20% down payment, and borrow the rest of the sale price. In this article, we will consider the Equated Monthly Income of maximum 25%, and the average mortgage period of 25 years with a fixed interest rate of 3.5%.

Apart from the down payment, the following upfront costs need to be paid too:

  • Life insurance, which is obligatory for mortgages.
  • Dubai Land Department Fee, which amounts to 4% of the real estate value
  • Extra charges by the bank for processing the mortgage
  • Dubai Land Department Admin Fee: AED 4k + 5% VAT
  • Agency Fee, which is 2% of the unit cost + 5% VAT
  • Title Deed Insurance Fee: AED 520
  • Mortgage Registration Admin Fee: AED 290
  • Mortgage Registration Fee: 0.25% of the value

Least Required Salary To Take Out A Loan

The minimum salary needed to have a loan is based on the real estate you’re interested in. For instance, most banks require the applicants to have a minimum salary of AED 15k each month. But there are some banks that approve applicants with an income of AED 10k per month.

Least Required Salary To Purchase Budget-friendly Flats in the Emirate

The most affordable locations in Dubai are Dubai Silicon Oasis, Jumeirah Village Circle, and Jumeirah Lake Towers. Let’s break these areas separately below.

Jumeirah Village Circle

The average cost of 1-bedroom flat here is AED 665k with the following conditions:

  • Minimum monthly income of AED 10k
  • EMI – AED 1.8k
  • Down payment – AED 133k (20%)

Jumeirah Lake Towers

The average cost of 1-bedroom flat here is AED 808k with the following conditions:

  • Minimum monthly income of AED 10k
  • EMI – AED 2.2k
  • Down payment – AED 161k (20%)

Dubai Silicon Oasis

The average cost of 1-bedroom flat here is AED 468k with the following conditions:

  • Minimum monthly income of AED 10k
  • EMI – AED 1.3k
  • Down payment – AED 94k (20%)

This means that a monthly income of AED 10k will be sufficient for being an owner of a flat in the above-mentioned localities. But remember that it’s not easy to secure a mortgage with such a salary.

Least Required Salary To Buy Opulent Apartments in Dubai

The Emirate attracts tons of people who want to own property in the high-end areas of Dubai. Some upscale localities in the city are Dubai Marina, Business Bay, and Downtown Dubai.

Downtown Dubai

This waterfront region sells 1-bedroom flat for AED 1.5 million with the following conditions:

  • Minimum monthly income of AED 18k
  • EMI – AED 4.3k
  • Down payment – AED 308k (20%)

Business Bay

The average cost to own 1-bedroom flat is AED 468k with the following conditions:

  • Minimum monthly income of AED 12k
  • EMI – AED 2.9k
  • Down payment – AED 209k (20%)

Dubai Marina

The average cost to own 1-bedroom flat for sale is AED 1.2 million with the following conditions:

  • Minimum monthly income of AED 15k
  • EMI – AED 3.3k
  • Down payment – AED 242k

Business Bay homes are in the popular business hub of the Emirate, which is why so many tourists and expats visit this district the most. Inhabitants will be able to enjoy a great variety of activities in the nearby areas, like Dubai Marina Mall, The Walk, Ain Dubai, and much more.

On the other hand, Downtown Dubai is an appealing hub for the people wishing to be in the proximity to Burj Khalifa, The Dubai Mall, and other landmarks. But in order to receive a loan for the flats in these regions, the minimum monthly income should be AED 18k.

Least Required Salary To Purchase Budget-friendly Villas

Do you have a big family? You will need a commodious property in the form of villas. The most affordable villas are available in Jumeirah Village Circle, Dubailand, and Damac Hills 2.

Damac Hills 2

The average cost to own a 3 bedroom villa is AED 1 million.

  • EMI – AED 3k
  • Down payment – AED 216k (20%)
  • Minimum monthly income of AED 12k

Dubailand

The average cost to own a 3 bedroom villa is AED 1.77 million.

  • EMI – AED 4.9k
  • Down payment – AED 354k (20%)
  • Minimum monthly income of AED 20k

Jumeirah Village Circle

The average cost to own a 3 bedroom villa is AED 2 million.

  • EMI – AED 5.5k
  • Down payment – AED 401k (20%)
  • Minimum monthly income of AED 23k

A 3 bedroom villa is ideal for families with children, along with couples who want to lead a peaceful lifestyle. But the most budget-friendly villas are present in Damac Hills 2, from where occupants can have access to sports facilities, Malibu Beach, cycling and jogging tracks, and so much more.

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