Thinking about buying a house in Dubai? There are numerous beautiful options to buy a property for sale in Dubai, ranging from Bulgari Residences Dubai to Port De la Mer. It all depends on your income where you can buy property in Dubai.
Many people are taking the leap from renters to homeowners, given the affordable rates, enticing payment plans, and protection offered in Dubai. Combined with this, the fact that LTVs (loan-to-value ratios) were increased by 5 points for first-time homebuyers and the UAE Central Bank lowered the threshold interest rates, leading to lower borrowing cost a strong time for potential buyers to join the Dubai property sector.
If you’re curious about buying a ready-to-wear home is a viable choice for you, we’ve measured the minimum wage required to purchase property in Dubai depending on the type of property and region you’re interested in.
How to calculate the minimum salary to buy a property?
For this guide, let’s assume that you’re going to take out a home loan to buy a property in Dubai. Taking into account that LTVs are actually capped at 80% for first-time expat buyers, the estimates are dependent on the premise that you have a 20% down payment on your preferred property saved. In addition, we will take your mortgage term to 25 years, the average interest rate to 3.5 per cent and the EMI (Equated Monthly Instalment) to 25 per cent of your monthly salary.
The bank will charge additional costs for mortgage servicing and land appraisal. It is also essential to keep in mind that life insurance is also mandatory before taking out a mortgage. This is some of the upfront costs you need to pay before testing the minimum wage required to purchase a Dubai property.
What is the minimum salary needed to buy property in Dubai?
The minimum wage you need to purchase a furnished property in Dubai would vary based on your property’s kind and location, as the city is home to both cheap and luxury properties.
You must also keep in mind that most UAE banks need you to have a minimum monthly salary of AED 15k to apply for a home loan, while some banks may accept candidates with a monthly income of AED 10k.
Minimum salary to buy an affordable apartment in Dubai
For smaller buyers, Dubai boasts a wide range of cost-effective apartments. Take a peek below at the minimum wage needed to purchase cheap apartments in Dubai, keeping in mind that the mortgage spending is set at 25 per cent of your income at an average interest rate of 3.5 per cent.
You can get a 1 bedroom apartment in Jumeirah Village Circle with an average sale price of AED 628,000. It comes with a downpayment of 20 per cent that is AED 125,600. This means that you need to have a minimum monthly salary of AED 10K.
If you want a 1 bedroom apartment in Jumeirah Lake Towers with an average sale price of AED 728,000. It comes with a downpayment of 20 per cent that is AED 145,600. This indicates that you must have a minimum wage of AED 12K monthly.
If you wish to get a 3 bedroom apartment in Dubailand, its average sale price would be around AED 2,137,000. It makes a down payment of AED 427,400 that is 20 per cent. This shows that you must have a minimum monthly income of AED 35K.
You can get a 3 bedroom apartment in DAMAC Hills (Akoya by DAMAC) with an average sale price of AED 1,846,000 and 20 per cent down payment that is AED 369,200. According to this, you need to have a monthly wage of AED 30K.
Can expats get a mortgage in Dubai?
Yes, expat residents in Dubai can definitely apply for home mortgages! There are, nevertheless, certain requirements that you must fulfil when getting a mortgage in Dubai, although this may vary between banks.
That completes our manual to the minimum wage you need to purchase a property in Dubai. As you can see, Dubai’s dynamic property market provides choices for purchasers with monthly salaries ranging from AED 10k to AED 60k! You can also explore some of the other cheaper places where you can rent a property for rent in Dubai.