A Comprehensive Guide to Buying Property in Dubai

Dubai’s lucrative real estate market has made it an ideal place for individuals to invest in.

Mar 26 | 5 minutes read
buying a property in dubai guide


However, if you’re worried about the math and the minimum salary needed to buy property in Dubai, we’ve got you covered. Here’s a rundown of the minimum salary required to purchase property in Dubai.


Why Should You Invest in Dubai?

Dubai offers an unparalleled lifestyle, thanks to its endless array of facilities, attractions and activities. Additionally, the attractive LTV (loan-to-value) ratio has been raised by 5 points for first-time homebuyers, and the Central Bank of UAE has cut benchmark interest rates, resulting in lower borrowing costs. This is a great time for prospective buyers to enter the property market and make the most of the mortgage affordability in Dubai.


How Do We Calculate the Minimum Salary to Buy Property in Dubai?

For this guide, we assume that you will take out a home loan for your property purchase in Dubai. 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 25% down payment for your desired property saved up. 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.


Minimum Salary Needed to Buy an Affordable Apartment in Dubai

Dubai boasts a massive portfolio of competitively-priced apartments. Those earning a minimum monthly salary of AED 15k can comfortably afford to buy 1-bedroom apartments in Jumeirah Village Circle (JVC), where the average price of a 1-BHK flat for sale is AED 726k. The same amount per month can also be sufficient to buy a 1-bedroom apartment in Business Bay (AED 1.2M) or a 1-bedroom apartment in Dubai Silicon Oasis (DSO) (AED 492k).


Minimum Salary Needed to Buy a Luxury Apartment in Dubai

If you’re looking at upscale neighborhoods, Dubai Marina is the best area to get a luxury apartment with waterfront views. Those earning as much as AED 15k per month can get 1-bedroom flats for sale in Dubai Marina at an average price of AED 1.3M. Alternatively, those with a monthly minimum salary of AED 20k can buy a 1-bedroom apartment in Downtown Dubai at an average cost of AED 1.7M. Palm Jumeirah is another upscale neighborhood that offers lucrative investment properties. If you’re earning up to 30k per month, you can buy a 1-BHK apartment in Palm Jumeirah for an average price of AED 2.6M.


Minimum Salary Needed to Buy a House in Dubai

Suburban communities such as DAMAC Hills 2, JVC and Dubailand are some of the most popular options. You can afford to buy a house in Dubai with a minimum salary range of AED 15k to AED 22k.


It's important to remember that the numbers provided earlier are merely estimates and assumptions, and may differ greatly when applied in real-world situations. Additionally, other upfront costs of purchasing property in Dubai include the Dubai Land Department fee (4% of the property value), DLD admin fees (AED 4,000 plus 5% VAT), title deed issuance fee (AED 520), mortgage registration fee (0.25% of the mortgage value), mortgage registration admin fee (AED 290), and agency fee (2% of the sale price plus 5% VAT). There could be additional charges by the bank for mortgage processing and property valuation, and life insurance is compulsory when taking out a mortgage in some countries.



If you’re keen to purchase a property in Dubai but find that your salary doesn’t quite meet the minimum salary requirements, you could consider these options:


Co-borrow with a friend or family member: You could pool your finances with a friend or family member and apply for a joint home loan. This can increase your borrowing power and help you secure the property you want.


Save up more for the down payment: If you don’t meet the minimum salary requirements, you could save up for a larger down payment. This can help you secure a better interest rate and lower your EMI, making it easier to repay your mortgage.


Consider a more affordable area: If you can’t afford to buy a property in a prime location, you could consider looking at more affordable areas. While you may have to compromise on location, you could still find a property that meets your requirements.


Look for off-plan properties: Off-plan properties are often cheaper than ready properties and can offer attractive payment plans. This can make it easier for you to buy a property even if your salary doesn’t meet the minimum requirements.


Dubai Property market



If you’re thinking about buying a property in Dubai, it’s important to consider the minimum salary requirements. While the minimum salary varies depending on the property type and location, there are many options available to help you afford your dream home. By considering these options, you can find a property that meets your requirements and fits your budget. With the current attractive LTV ratio and lower borrowing costs, this is a great time to invest in Dubai’s lucrative real estate market.


HOUSIFY connects investors with properties that match their investment goals and offers a range of tools to help them analyze the market and make informed decisions. With HOUSIFY, investors can browse a wide selection of properties from around the world and connect with local agents and developers to complete their transactions.

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