Required Income to Purchase a Property in Dubai
Updated: Oct 23, 2022
Dubai is one of the most popular locations for those looking to make a wise investment or buy their ideal house to live on the waterfront. How much salary is required to buy a residential unit in Dubai is a crucial topic as more and more individuals get interested in purchasing real estate here. While some people favor pre-built homes, others opt for off-the-plan developments and borrow money from their neighborhood bank. The minimum income required to purchase an apartment or villa in Dubai's most sought-after neighborhoods will be determined in this article.
Dubai Property Sales in 2022
Through H1 2022, the Dubai real estate market displayed remarkable numbers. The average sales price per square foot has increased by 8% in the segment of inexpensive real estate compared to H2 2021, while the cost of residential properties in the most affluent neighborhoods has increased by 19%. Dubai continues to be one of the most sought-after and cost-effective cities in the world despite price increases.
While those looking for a luxurious lifestyle prefer Business Bay, Downtown Dubai, Palm Jumeirah, Dubai Marina, Dubai Silicon Oasis, Dubai Hills Estate, and Jumeirah Lake Towers, the majority of prospective buyers are drawn to family-friendly communities like Jumeirah Village Circle, Arabian Ranches, The Springs, Dubailand, and DAMAC Hills 2. The Dubai Land Department (DLD) reports that a total of 14,576 sales, comprising ready-to-move and off-plan properties, were completed in the first quarter of 2022, with a total transaction value of AED 33.06B. (USD 9B).
What Level of Salary Is Required to Buy Real Estate in Dubai?
In the UAE, first-time foreign purchasers have the option to borrow 80% of the purchase price with only a 20% down payment on a mortgage. In this post, we'll assume that a mortgage will typically last 25 years, have an average fixed interest rate of 3.5%, and an allowed Equated Monthly Income (EMI) of no more than 25%.
Keep in mind that you'll also have to pay the following up-front expenses in addition to the down payment: