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:
DLD Admin Fee, which is AED 4K (USD 1.1K) + 5% VAT
Dubai Land Department Fee, which is 4% of the property value
Mortgage Registration Fee, which costs 0.25% of its value
Mortgage Registration Admin Fee with a cost of AED 290 (USD 80)Title Deed Insurance Fee which is AED 520 (USD 140)
Agency Fee, which is 2% of the sale price + 5% VAT
Life insurance, which is compulsory while taking a mortgage
Additional charges by the bank for mortgage processing and more
What is the Minimum Salary to Take Out A Loan?
The type of property you choose will determine the minimum income needed to qualify for a loan. Most banks would desire a candidate to have a minimum monthly salary of AED 15K (USD 4K). However, some banks would accept applicants with a monthly salary of AED 10,000 (USD 2.7 000).
Note: To reduce your monthly payments, we advise choosing the longest term available. Throughout the term of the loan, you are always free to make additional payments that shouldn't be made in excess of 10% of the principle.
What is the Minimum Income to Purchase Luxury Apartments in UAE?
For those looking to reside close to the Burj Khalifa, the Dubai Mall, and other emirate monuments, downtown Dubai is a popular choice. However, your wage must be at least AED 18K (USD 5K) each month to qualify for a loan for real estate in these kinds of places. Units at Business Bay, the city's business district, as well as Dubai Marina, a favorite among visitors and expats for the wide variety of entertainment options nearby such The Walk, The Beach, Ain Dubai, and Dubai Marina Mall, are a little more reasonably priced.
Buying a villa in Dubai may be appealing if you have a large family or are seeking for a roomy residence. Areas like DAMAC Hills 2, Dubailand, and Jumeirah Village Circle are where you may find villas that are more reasonably priced.
Families with children as well as couples looking for a peaceful lifestyle can consider a 3-bedroom villa. The most reasonably priced villas are located in DAMAC Hills 2, a rising neighborhood that offers access to Malibu Beach, sporting amenities like tennis and basketball courts, jogging and cycling routes, and much more.
The Palm Jumeirah, Arabian Ranches, and Dubai Hills Estate are the best places to look if you want to live in the height of luxury in a large residential space.
It takes roughly 20 minutes to go to Downtown Dubai from all of the aforementioned locations. Locals and visitors from abroad who want to reside close to the waterfront and have easy access to the rest of the emirate's major attractions go to Palm Jumeirah. The Lost Chambers Aquarium, Aquaventure Waterpark, and Nakheel Mall are all located on Palm Jumeirah itself. However, in order to make mortgage payments, your earnings should be at least AED 172K (US$47K) every month. Golf courses and green spaces can be found at Dubai Hills Estate and Arabian Ranches, respectively.
Ready to Invest?
All About Properties is always prepared to give you the most recent details on the Dubai real estate market. We can help you find a home that fits your needs and budget, as well as complete all the required paperwork and guide you through the entire transaction.