In the diverse and sophisticated world of real estate in Dubai, owning a home is a dream that many strive to achieve and with the availability of installment purchase options, the dream has become closer and closer and if we look at this scenario through the eyes of the financial average, what is the appropriate salary that an individual can afford to buy a property in Dubai in installments? This topic raises many questions, and in this introduction we will try to explore answers and directions on this important topic.
Requirements for purchasing a property in Dubai in installments
In order to be able to buy a property in Dubai in installments, you must meet a set of requirements and be aware of a number of costs that some people are unaware of, so here are all the costs and requirements you need to know in order to be able to own real estate in Dubai in installments.
Fixed costs of owning real estate in Dubai
Regardless of the type of property to be purchased in Dubai, there are upfront costs that buyers must pay when purchasing a property in Dubai. Knowing these costs in advance helps you plan the budget more efficiently and roughly estimate the appropriate salary to buy a property in Dubai. The most prominent of these costs include the title deed issuance fee amounting to 250 UAE dirhams, the property registration fee amounting to 2% of the property value for the seller and 2% for the buyer, in addition to the mortgage contract registration fee amounting to 0.25% of the value of the debt or mortgage, in addition To an agency fee of 2% of the property’s selling price, and a value-added tax of 5% and in addition, there are additional service fees for some banks if you are applying for real estate financing, in addition to life insurance when applying for this financing.
The minimum salary required to buy a property in Dubai in installments
Real estate prices vary and therefore the minimum salary that helps to purchase the desired property varies. Location plays a major role in determining real estate prices; Some areas attract residents and investors more than others. We will discuss in detail determining the appropriate salary for purchasing a property in Dubai based on the different types of properties according to the following criteria: a mortgage period of up to a maximum of 25 years, and spending 25% of the monthly income on real estate financing according to the latest real estate market data in Dubai.
Affordable apartments are a popular option for medium budgets, with average prices for apartments in Dubai's most sought-after areas standing at AED 734,200, according to Dubizzle data, and to determine the appropriate minimum salary to buy an affordable apartment in Dubai, you must focus on the areas most in demand for purchasing affordable apartments, as Jumeirah Village Circle appeared at the top of the list of these areas and detailed financial data regarding purchasing apartments in this area shows that the average purchase price is AED 948,000, with the down payment amounting to 20% of the total amount, i.e. AED 189,600, and the monthly installment over 25 years at 4% interest, which is About 16,000 UAE dirhams, as the minimum salary for owning an affordable apartment type property in Dubai is AED 16,000.
Real estate market trends in Dubai
The real estate market in Dubai is witnessing dynamic trends that reflect the economic and social developments in the emirate and this market is characterized by vitality and innovation, making it a prominent investment destination both locally and internationally and in this section, we review current trends and future expectations for prices and demand for real estate in Dubai.
Market recovery after the pandemic:
After a period of stagnation as a result of the Covid-19 pandemic, the real estate market in Dubai has witnessed a noticeable recovery and this recovery is due to supportive government policies, such as golden residency visas and economic stimulus programmes, which have encouraged investment and attracted high-net-worth individuals to Dubai.
Increased demand for luxury real estate:
There is a significant rise in demand for luxury properties, including luxury villas and luxury apartments and this trend reflects the desire of investors and buyers to take advantage of the luxury offerings and world-class facilities that Dubai has to offer.
Growth of real estate development projects:
Dubai is witnessing the launch of many major real estate projects, such as integrated residential complexes and new commercial areas and these projects attract more investors and contribute to enhancing the growth of the real estate market.
Demand for office space:
As the economy recovers and business activity returns, there is an increase in demand for office space, especially in key commercial areas such as Downtown Dubai and the DIFC.
As for real estate trends in Dubai, they currently look as follows:
Continued economic growth:
Dubai's economic growth is expected to continue thanks to economic diversification and innovation, as this growth will lead to increased demand for both residential and commercial properties.
Infrastructure improvement:
As Dubai continues to develop its infrastructure, including transportation and urban development projects, the city will become more attractive to investors and residents and these improvements will contribute to increasing property values and enhancing the attractiveness of the real estate market.
Sustainability and technology:
Sustainability and technology will play an increasingly important role in Dubai's real estate market and the market is expected to witness an increase in environmentally friendly real estate projects based on smart technology, which enhances Dubai's attractiveness as a future city.
Price fluctuations:
Despite positive trends, investors should be aware of the possibility of price fluctuations as a result of global economic factors and geopolitical changes and strategic planning and specialized consulting will remain essential to avoid risks and achieve sustainable returns.
Current trends and future forecasts show that the real estate market in Dubai is heading towards further growth and development and thanks to supportive government policies, economic developments and advanced infrastructure, Dubai will remain an attractive real estate investment destination in the coming years, but as in any market, investors and buyers must be aware of potential challenges and make informed decisions based on reliable advice and accurate market assessments.
Related articles:
Buying real estate in Dubai or Türkiye?
Properties for sale in Dubai Centre
investor residency in Dubai
real estate for sale in Dubai in installments
House prices in Dubai
Small villas for sale in Dubai
Apartments for sale in the Emirates under construction
Studio apartments in Dubai, advantages and disadvantages
Buying a house in Dubai at a reasonable price
