Dubai is a real estate paradise with a large expat population in residence. Attractive payment plans and low sales prices provided by property developers are causing more first time buyers of homes to rush to buying property.
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This rush in real estate activity is also due to innovative and Latest mortgage products by certain local banks. Even someone with a monthly salary of Dh10,000 can venture into the property market. All they need is a capacity to arrange for registration charges and up-front payment.
Many properties are available to cater to a wide range of income brackets. Two big barriers to property ownership – high prices and poor accessibility to a home mortgage – have been overcome. This has boosted real estate activity.
Those with monthly income between Dh15,000 and Dh10,000 can now easily purchase apartments. According to market insiders, the average one bedroom apartment in fresh residential areas like Liwan, Silicon Oasis, etc. costs around Dh600,000.
This needs down payment of Dh150,000 and registration expenses of Dh 30,000. The EMI for the buyer is Dh2,200 a month. This figure can be easily managed by people earning around Dh 15,000 a month, as it is less than their current monthly rental.
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In 2018, the topmost affordable properties to persons with monthly income of around Dh 10,000 are Dubai South, Al Furjan, JVC (Jumeirah Village Circle) and International city.
For those with a monthly income of Dh15,000 and above, leading properties are located in Dubai Sports City, Business Bay, JVC and Dubai South.
The issue is whether a person earning a monthly income of Dh10,000 is eligible for a mortgage. Provided customer does not have any other major loans, he can easily avail of a home loan for 25 years.
