Finding Affordable Properties in Dubai Real Estate

Dubai is a city of limitless opportunities and is a prime destination for those seeking to purchase affordable property and one that redefines modern living. The city has seen a growing interest in property acquisition, prompting many to inquire about the minimum income required to become a property owner in Dubai.

Therefore, while some individuals lean towards ready-to-move-in properties, others may disagree and adopt a different approach by opting for off-plan projects. Dubai is notably 37.52% less expensive than New York, making it an attractive option for home buyers and investors seeking affordable property in various areas of the city.

In this blog, we will explore locating Dubai’s budget-friendly properties and other factors that may influence one’s decision to buy property in some of the most exclusive areas in Dubai.

Factors Influencing Property Prices in Dubai

The cost of living in Dubai is influenced by various factors that impact the price of real estate. For instance, the property type, such as a studio, apartment, villa, or townhouse, can significantly affect the cost. Additionally, the size and layout of the property and its quality, including its age, finishings, and appliances, also affect the price.

What further impacts the cost of property is its location, whether in waterfront communities or proximity to the city center, as well as transport links. Views from the property can also command a higher rental price, and whether the property is furnished or unfurnished can lead to price differences.

All these market and property conditions further influence the cost of living in Dubai, although these factors are subject to change based on individual preferences. Hence, it is essential to prioritize your needs to find a property that fits your budget without sacrificing critical requirements.

Choosing the Right Budget

The average annual salary in Dubai is 258,000 AED, equating to 21,500 AED per month. Understanding your budget before entering into any agreement is crucial to ensure financial stability. Housing typically represents most individuals’ most significant monthly expenses, impacting spending priorities and other financial obligations. As a general guideline, it’s recommended that at most 30% of your salary should be allocated towards housing. 

First-time expat buyers in Dubai can secure a mortgage with a 20% down payment, allowing them to borrow 80% of the purchase price.

In addition to the down payment, it’s essential to consider various upfront costs, including the Dubai Land Department Fee (4% of the property value), DLD Admin Fee (AED 4K + 5% VAT), Title Deed Insurance Fee (AED 520), Mortgage Registration Fee (0.25% of the property value), Mortgage Registration Admin Fee (AED 290), Agency Fee (2% of the sale price + 5% VAT), mandatory life insurance when taking a mortgage, and additional charges by the bank for mortgage processing, among others.

Cheapest Places to Buy Property in Dubai

When looking for affordable properties in Dubai, it’s essential to consider the different neighborhoods, their average prices, and their living conditions. Among the most budget-friendly locations across Dubai are Jumeirah Village Circle, Jumeirah Lake Towers, and Dubai Silicon Oasis. 

Let’s discuss properties’ cost, benefit, and affordability aspects in these areas below.

Jumeirah Village Circle

In Jumeirah Village Circle, the average price for a 1-bedroom apartment is AED 665K (USD 181K), with a down payment of 20% amounting to AED 133K (USD 36K). The estimated monthly installment (EMI) is AED 1.8K (USD 500), and the minimum monthly salary required to afford this property is AED 10K (USD 2.7K).

Jumeirah Lake Towers

The average price for a 1-bedroom apartment in Jumeirah Lake Towers is AED 808K (USD 220K), with a down payment of 20% totaling AED 161K (USD 44K). The estimated monthly installment (EMI) is AED 2.2K (USD 607), and the minimum monthly salary required to afford this property is AED 10K (USD 2.7K).

Dubai Silicon Oasis

In Dubai Silicon Oasis, the average price for a 1-bedroom apartment is AED 468K (USD 127K), with a down payment of 20% of AED 94K (USD 26K). The estimated monthly installment (EMI) is AED 1.3K (USD 350), and the minimum monthly salary required to afford this property is AED 10K (USD 2.7K).

However, that is not all. Suppose the properties mentioned above are different from your cup of tea. In that case, you may resort to properties that are available in the secondary market with various options to consider that are more affordable. Let’s look at these areas, the properties they offer, and the amenities you may benefit from. 

Dubai International City

A secondary studio apartment in England Cluster is available for approximately AED 225,000 ($61,000). These apartments come with partially furnished kitchens, are situated in low-rise buildings, and offer easy access to essential locations, including academic institutions, supermarkets, shops, restaurants, and medical and fitness centers.

Dubai Residence Complex

In the Dubai Residence Complex, a one-bedroom apartment with a balcony is available for AED 328,000 ($89,000). The amenities include indoor parking, a swimming pool, and running and walking tracks. Additionally, the property is in close proximity to Al Maktoum Airport, the Mall of Emirates, and Dubai Mall, offering you the ultimate convenience.

Motor City

You may even consider a studio apartment in Motor City, which can be purchased for AED 396,000 ($108,000) in a residential complex. Nearby attractions include the Formula 4 track, shopping malls, playgrounds, restaurants, schools, and medical centers that’ll keep you and your families excited to the core.

The properties above provide a range of options for potential buyers, catering to different preferences and budgets; affordable choices are available in Dubai’s real estate market, whether a studio apartment or a one-bedroom unit.

The Bottom Line 

Dubai offers somewhat affordable options for purchasing property, making it an ideal destination for investors with a limited budget and homebuyers seeking comfortable homes with modern features. However, conduct thorough market research and explore alternate locations until you can find a great bargain on a property that suits your budget.

Working with respectable experts is crucial to ensure a good transaction. Despite its reputation as one of the most expensive cities in the world, Dubai has some hidden affordable gems in its vault, offering serene surroundings and excellent ROI.

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