UAE home ownership now affordable for residents earning Dh20,000 a month

Banks more willing to lend to mid-level earners

People earning under Dh15,000 a month should look at locations such as Dubai Silicon Oasis. Satish Kumar / The National

Home ownership is within the reach of professionals in the UAE who earn between Dh15,000 ($4,084) and Dh20,000 a month, although the choices will be “highly selective” and concentrated in value-led communities, according to experts.

Monthly incomes in the range of Dh35,000 to Dh50,000 usually provide the greatest flexibility in terms of locations, they say.

The minimum salary required by UAE banks to approve a mortgage for first-time buyers varies by lender.

“While a few banks offer mortgages to expatriates earning as little as Dh10,000 a month and Emiratis earning Dh8,000, most banks typically require a minimum salary of around Dh15,000,” says Yash Trivedi, founder of mortgage advisory company YouAE Mortgages.

“Banks in Dubai typically allow mortgage repayments of up to 50 per cent of an applicant’s fixed monthly income and allowances. In most cases, they also consider 50 per cent of any variable income, such as commissions or incentives.”

The property market in Dubai has benefitted from government initiatives such as residency permits for retired and remote workers, expansion of the 10-year golden visa programme and overall growth in the UAE’s economy on diversification efforts.

Dubai launched an initiative in July where first-time buyers will have priority access to new homes from participating developers as well as existing inventory, discounts or limited-time offers on the sale price of off-plan units, flexible payment plans, and “improved” mortgage options with better interest rates, faster approval times and reduced fees.

Home ownership in the UAE is increasingly attainable from the Dh15,000-Dh20,000 monthly income range, provided buyers have the required down payment and manageable existing financial commitments, according to Farooq Syed, chief executive of Springfield Properties.

While recent initiatives are expanding access to credit, mortgage affordability remains anchored to income stability, down payment capacity and bank-specific debt thresholds, he says.

Salary to buy studio, 1-bed apartment and villa

As a broad market guide, to buy a studio, you need to earn from Dh15,000 to Dh20,000 per month; for a one-bedroom apartment, from Dh20,000 to Dh30,000 per month; and villas or town houses, typically Dh45,000 to Dh60,000-plus, depending on location and price, Mr Syed says.

These ranges reflect prevailing loan-to-value ratios and conservative repayment assumptions applied by lenders.

“For most buyers using mortgage finance, a realistic minimum monthly salary today is around Dh15,000 to Dh18,000,” says Andrew Cummings, head of residential agency at Savills Middle East. “This typically allows entry-level purchases in more affordable communities, assuming a reasonable deposit, controlled debt levels and a stable employment history. Below this level, financing options become limited, and choices narrow significantly.

“At an income level of Dh15,000 to Dh25,000, discipline and location choice are critical. Buyers should focus on established, affordable communities, prioritise smaller units, and avoid stretching to premium areas too early. Off-plan options with sensible payment plans can help, but fundamentals such as developer quality, service charges and resale liquidity should not be overlooked.”

Mr Syed agrees and says buyers in the Dh15,000 to Dh25,000 monthly income range are best served by focusing on entry-level ownership rather than location prestige.

Monthly incomes between Dh35,000 and Dh50,000 typically provide the greatest flexibility, allowing buyers to choose across a broader range of locations, unit sizes and building quality – particularly when paired with a solid down payment and limited existing debt, he adds.

Here's what Dh1 million gets you in Dubai's property market today

03:49

Affordable locations for salary brackets

Buyers paid less than Dh15,000 typically need to look at entry-level locations such as Dubai South, International City, parts of Jumeirah Village Circle, Dubai Silicon Oasis, and selected off-plan communities, Mr Cummings suggests. Meanwhile, Mr Syed recommends buying in Dubai Production City, Liwan and other parts of Dubailand.

“To buy comfortably in prime areas such as Dubai Marina or Downtown Dubai, a monthly salary of Dh35,000 to Dh45,000 is generally required, assuming mortgage financing and a standard deposit,” Mr Cummings says. “This allows buyers to absorb higher price points, service charges, and long-term holding costs.

“Communities such as Dubai South, Town Square, Arjan, Al Furjan and selected areas within JVC continue to offer strong value. These locations benefit from improving infrastructure, competitive pricing, and increasing end-user demand.”

Mr Syed says home ownership remains achievable for middle-income professionals in the UAE, but it is increasingly “structured and selective”. Prime districts are firmly positioned within the luxury segment, while affordability for middle-income buyers is concentrated in value-led and emerging communities supported by targeted policy and banking initiatives, he says.

“A salary of Dh20,000 today generally buys less space or a less central location than it did five years ago. However, expanded financing options, first-time buyer initiatives and more flexible payment structures are helping offset this shift by keeping ownership accessible for disciplined buyers,” he adds.

While a few banks offer mortgages to expatriates earning Dh10,000 per month, most banks typically require a minimum salary of around Dh15,000

Yash Trivedi,
founder of YouAE Mortgages

Things to watch out for

Many buyers focus only on the down payment and monthly mortgage instalments, while overlooking recurring and one-time costs such as service charges, maintenance, utility deposits, and moving or furnishing expenses, Mr Trivedi says.

Transaction costs including bank valuation fees, property registration charges, real estate brokerage commissions, trustee fees, property insurance, life insurance linked to the mortgage, and bank processing fees are often underestimated, he says.

“In practice, expatriate buyers typically require around 27 per cent upfront for properties below Dh5 million, while this rises to 37 per cent for properties priced above Dh5 million,” Mr Trivedi says.

“Service charges vary significantly depending on the community and property type. Buyers should typically budget between Dh10 and Dh30 per square foot per year for apartments. Villas and town houses generally have lower service charges, but higher maintenance and upkeep costs, which should be budgeted for separately.”