What is the minimum salary to buy real estate in Dubai?

Article author
08 Sep 2023
08 Sep 2023
In this article

The United Arab Emirates stands out as one of the world's wealthiest nations, with minimal poverty and an average income surpassing that of European countries. A significant portion of Dubai's population consists of expatriates who relocate to enhance their quality of life, make investments, and boost their earnings.

Best real estate offers

What is the typical down payment in Dubai?

Dubai offers diverse real estate options across various price ranges, catering to a range of buyers. Prospective property owners have multiple avenues to explore, including cash purchases, mortgage acquisitions, off-plan construction investments, and rent-to-own arrangements. It is crucial to establish a clear financial strategy and ensure adequate funds before making a purchase.

In 2020, the Central Bank of the United Arab Emirates revised the minimum down payment requirements for real estate purchases through mortgages. However, these requirements differ between local residents and foreigners. Non-citizens are typically required to make a down payment of 20% of the property's cost, while citizens need to pay 15%.

Let's delve into a few examples. A 1-bedroom apartment in the DAMAC Hills 2 area has a starting price of $278,000, with an initial 20% payment of $55,600 for a 25-year mortgage at a 3.5% interest rate. Meanwhile, a 1-bedroom residence in Jumeirah Lake Towers averages around $216,000, necessitating an initial payment of $43,200. If you're interested in acquiring property in the Business Bay area, you'll need to deposit $58,600, based on the average price of $293,000 for a 1-bedroom unit.

Which income sources are considered by UAE banks?  

In the United Arab Emirates, stringent anti-money laundering legislation prompts banks to impose rigorous criteria on individuals without resident visas. In such cases, loan applications may either be declined or subject to additional conditions, necessitating expatriates to personally visit the bank and validate their compliance with specified criteria. These requirements often encompass maintaining a minimum account balance of $1,300 and establishing an investment account or a long-term deposit. To assess a potential client's income before granting a loan or mortgage approval, banks typically require candidates to verify their official income, furnish a salary certificate, and provide documents from the tax authorities.

What is the minimum Income requirement for real estate purchase?  

When financing isn't involved  

Income thresholds in Dubai vary based on a specialist's skill level, as there is no set minimum wage. Nonetheless, even the lowest salaries in Dubai surpass the average incomes in many European Union countries.

As of 2023, the average salary in Dubai stands at $6,000, with all UAE citizens exempt from salary taxes. On average, residents allocate approximately $2,500 to $2,200 per month for expenses, covering groceries, transportation, and apartment rent.

Imagine you wish to acquire a $130,000 residence under a 70/30 post-handover payment plan. To achieve this, you must initiate the process by reserving a plot, which costs 5% of the property's value, totaling $6,500. Subsequently, you'll need to make a 10% payment of the property's cost, followed by 60% during the construction phase, and the remaining 30% within 2 years after obtaining the keys. Consequently, a one-time down payment of $13,000 is required. By saving $2,500 monthly, you can accumulate this necessary sum within 5 and a half months, allowing you to make periodic payments throughout the construction and the subsequent 2 years following completion.

Villas in The Legends residential project

Opting for a mortgage

When considering a mortgage for real estate, it's essential to have an initial payment of 20% of the property's value. The prevailing fixed interest rate across the UAE stands at 2.49%. Expatriates have the option to secure a mortgage loan for up to 80% of the property's value, and the maximum mortgage term in the UAE extends to 25 years. If you wish to accelerate your mortgage repayment, additional payments can be made, provided they do not exceed 10% of the principal debt balance.

Credit options  

Obtaining a loan hinges on meeting specific salary criteria. Most banks require a minimum monthly income of $4,000, although CBD considers applicants with a salary of $3,300, and Emirates NBD bank mandates a minimum monthly income of $2,750. Irrespective of these loan requirements, maintaining either employee or self-employed status is imperative.

Payment Plan  

For individuals purchasing real estate under construction, developers often offer convenient payment plans spanning 2 to 5 years, divided into stages during and after construction completion.

Payment plan terms can vary among developers, but we'll outline the most prevalent type of installment post-handover scheme in the market. Suppose you're acquiring a one-bedroom apartment valued at $200,000 with a 2-year payment plan. In this scenario, an initial payment of 10% is due upon contract signing, followed by 20% every two quarters, with the remaining 10% payable after construction completion. To initiate the contract, you'll need to pay $20,000, followed by $40,000 every two quarters, and a final $20,000 after construction concludes.

Rent-to-Own facility  

The rent-to-own scheme entails a modest down payment, typically 5-8% of the property's value, resembling a lease with a redemption possibility. This leasing arrangement differs from the traditional model by featuring higher payments, all of which are credited towards a future purchase.

Imagine you're acquiring apartments under the Rent-to-Own scheme for $200,000, spanning a 20-year period with a 5% initial payment requirement. In this case, your initial payment amounts to $10,000, with a monthly installment of $790. A minimum income of $1,600 per month is typically necessary in this scenario.

Can you rent property purchased with a mortgage?  

When you invest in real estate within one of Dubai's freehold zones, you secure full ownership with no time constraints. This empowers you to explore the option of leasing out your property to generate income. Remarkably, physical presence in the UAE is not a prerequisite for renting out your property. Specialized companies are available to handle all the intricacies of the rental process, from locating tenants to managing the apartment and ensuring timely remittance of rental proceeds to the owner's account.

Dubai districts featuring affordable real estate  

Drawing insights from Bayut & dubizzle, it's evident that Jumeirah Village Circle, DAMAC Hills 2, and Dubai Hills Estate top the list as the most sought-after areas for procuring budget-friendly apartments in Dubai. Situated away from the city center, these verdant neighborhoods offer residents access to extensive retail centers, fitness facilities, picturesque parks, and vibrant recreational spaces. Real estate prices in these locales commence at $120,000.

Budget-friendly real estate choices  

North 43   

North 43 is a residential complex featuring serviced apartments, nestled in the serene environs of JVC. These fully furnished residences encompass 1-3 bedrooms and studios, offering residents the opportunity to stroll through meticulously landscaped parks, bask in designated poolside sunbathing areas, or engage in workouts at the complex's fitness center. The spacious balconies offer versatile utility, serving as private yoga sanctuaries or open-air study spots. Prices for these properties start at $131,000.

Inner North 43 project territory


Volare offers a distinctive living experience with its club house featuring studios and 1-2 bedroom apartments, nestled in the Arjan district. Residents are treated to an oasis-like ambiance, complete with luxuriant tropical gardens, a designated barbecue area, and a rooftop terrace boasting a refreshing swimming pool and inviting Jacuzzi. The project's amenities extend to a well-appointed business lounge and a retail zone, affording the convenience of shopping and negotiations without leaving the project's premises. Prices start at $180,000.

Volare residential project

Luxor Tower

Luxor Tower stands tall in the verdant surroundings of JVC, offering a high-rise living experience. Within its walls, you'll discover snug studios and 1-2 bedroom apartments, all thoughtfully furnished and equipped with top-notch built-in appliances and plumbing fixtures. Residents enjoy access to an infinity swimming pool gracing the rooftop, a delightful barbecue area, a well-equipped gym, and verdant lounge spaces scattered across the premises. Prices begin at $184,000.

Panorama from Luxor Tower residential project


Dubai's new projects’ market offers a diverse array of options tailored to various budget considerations. Our dedicated brokers, reachable at +971 (4) 450-2640, are poised to identify a suitable property within your budgetary constraints. They will arrange viewings and expertly navigate every facet of the transaction, ensuring a seamless process from start to finish.