How much do you need to earn to buy a property in Dubai?

This article was published on May 21st, 2019

How much you can borrow and where you can buy property depends largely on what you earn. We’ve done the maths and put together a collection of properties that you could own based on your monthly salary.

Most banks won’t qualify you for a mortgage unless you earn at least AED 15,000 per month.

First, the maths explained

Our calculations are based on the following variables; an average mortgage interest rate of 4%; the average length of a mortgage of 20 years; and the average spend for your mortgage (recommended to be 20% of your salary).

It’s important to note a few points:

  1. Most banks won’t qualify you for a mortgage unless you earn at least AED 15,000 per month.
  2. The interest on your mortgage is top heavy, meaning you’ll pay off more of the interest than the principal in your early payments. So, when it comes to your repayments, the interest will be higher on your initial payments and then decline with each payment you make over time.
  3. There is a minimum 25% down payment (deposit) required to purchase property and other fees will also apply (see below). Our calculations are considering that you have that amount saved up.

Fees to buy property in Dubai

  • Land Department Fee: 4% of property value plus a AED 580 admin fee
  • Registration Fee: AED 2,000 for properties below AED 500,000 plus VAT and AED 4,000 for properties above AED 500,000 plus VAT
  • Mortgage Registration: 0.25% of the loan amount plus a AED 290 fee
  • Valuation: AED 2,500 – AED 3,500 plus VAT

You can use our Mortgage Calculator to get the final costs on your chosen property.

The Fun Bit – choosing an affordable property

We found some wonderful listings on Property Finder, took the average stats for a mortgage and figured out what salary you’d need to be earning to own a home like this.

For this AED 500,000 brand new large studio located in the modern and sleek complex of Damac Hills, you’ll need a minimum salary of AED15,000.

This AED 1,000,000 refurbished 1-bedroom apartment in the coveted Dubai Marina will mean you need to earn at least AED 25,000.

For this swanky Downtown apartment with a lake view costing AED 2,500,000, you’ll need to bring in at least AED 57,000.

An infamous Palm property of AED 3,500,000 would put your earnings at AED 80,000 plus.

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