Dubai has earned a global reputation for its thriving real estate sector and opulent properties. The city is currently attracting significant international interest, with investments surging in properties across the emirate.
According to a recent study conducted by Savills, real estate transactions in the first half of 2023 witnessed a remarkable 44 percent increase, totalling nearly 60,000 units sold.
In conversation with several property experts in Dubai, Arabian Business understands that with a budget of $1 million, potential buyers can explore a diverse array of opportunities in the city’s bustling property market.
How much house can you get in Dubai for $1 million?
Dubizzle, a property portal in Dubai, reveals that the city’s real estate market offers vast opportunities for investors with a budget of $1 million.
“If you are looking for something luxurious in the emirate’s thriving lifestyle hubs, everything from an elegant one-bed apartment in Palm Jumeirah to a two-bed apartment in the pulsating heart of Downtown Dubai or a larger three-bedroom flat in Dubai Marina is up for grabs,” said real estate expert, Fibha Ahmed Sales, Director at Bayut and dubizzle.
The prime property prices in the city were described as “competitive” with “more space” as compared to major cities such as Monaco, London, Beijing, Hong Kong and Tokyo.
“While you can buy apartments with three bedrooms in Dubai’s most sought-after locations like Dubai Marina and JBR, as well as the new locations like MBR City, Dubai Creek Harbour and Meydan City for a budget of $1 million, you would be hard pressed to find something of a similar size in other major metropolises of the world,” Ahmed explained.
However, it is important to assess and analyse the intention of purchase before making an investment decision. Offerings for those looking for holiday homes, family homes and purely for investment purposes can vary drastically.
“If you are keen on investing with healthy returns in mind, purchasing a few smaller units in suburban favourites like Dubai Sports City and International City is also a good option. These areas have a healthy inventory of studios and one-bed units which are often within $150k-$200k, making it a good option for someone looking to diversify their portfolio of property investments,” Ahmed suggested.
JVC and Dubai Silicon Oasis were among the top suggested neighbourhoods for those who prioritise affordability as a key factor.
Jeffrey De Souza, Head of Mortgages at Betterhomes said, “For those looking to maximise their investment potential, there is a strategic option available. By using the $1 million as a down payment and leveraging a mortgage, buyers can gain access to even more opulent properties.”
He explained that this financial strategy opens up possibilities such as spacious seven-bedroom mansions or high-end apartments in high-end areas such as Palm Jumeirah, Downtown Dubai, Marina, or exclusive Golf Estates.
Dubai real estate and salary brackets: A comprehensive guide
Diving into a comprehensive guide for investors, De Souza broke down the “various salary brackets and their corresponding purchasing power within the market,”
- Salary Bracket: AED10,000 to AED15,000
- Mortgage Potential: Up to AED1,000,000
- Approximate Purchase Price: Around AED1,250,000
- Salary Bracket: AED20,000 to AED25,000
- Mortgage Potential: Up to AED1,700,000
- Approximate Purchase Price: Around AED2,125,000
- Salary Bracket: AED30,000 to AED35,000
- Mortgage Potential: Up to AED2,500,000
- Approximate Purchase Price: AroundAED 3,250,000
- Salary Bracket: AED40,000 to AED45,000
- Mortgage Potential: Up to AED3,100,000
- Approximate Purchase Price: Around AED3,875,000
- Salary Bracket: AED50,000 to AED55,000
- Mortgage Potential: Up to AED3,900,000
- Approximate Purchase Price: Around AED5,500,000
- Salary Bracket: AED60,000 to AED65,000
- Mortgage Potential: Up to AED4,600,000
- Approximate Purchase Price: Around AED6,500,000
De Souza hopes that the guide offers, “A clear understanding of the real estate possibilities available across different income brackets in Dubai.”
“By aligning your financial situation with the corresponding mortgage potential, you can make informed decisions when navigating the vibrant Dubai real estate market,” he said in conclusion.
Additionally, Sam McCone, Managing Partner at McCone Properties explained, “There are many variabilities that can affect a buyer’s ability to qualify for a mortgage but assuming they are a UAE resident, are able to take a mortgage for the maximum tenure of 25 years (as you can usually only get a mortgage up to the age of 65) and the buyer is relatively debt free, then here are the salaries you would need for various different purchase prices.”
- AED12,000 salary would achieve a purchase price of AED1,000,000
- AED24,000 salary would achieve a purchase of AED2,000,000
- AED36,000 salary would achieve a purchase of AED3,000,000
- AED48,000 salary would achieve a purchase of AED4,000,000
- AED60,000 salary would achieve a purchase of AED5,000,000
The range of properties offered in the city of Dubai is extensive, for $1 million you can get a three-bedroom townhouse at The Springs or a two-bedroom off-plan apartment in Dubai Design District with Burj Khalifa views, for instance.
Aligning salary with investment goals
The relationship between your monthly salary and your property investment goals is a crucial factor to consider in Dubai’s real estate market. While the comprehensive guide provides a general overview, it is recommended to consult with financial experts and real estate professionals to create a tailored strategy that aligns with individual financial situations and objectives.
The Dubai real estate sector sale prices have increased more than 19 percent and rents up by over 21 percent in the past year, according to CBRE analysis. The transaction total in Dubai’s residential market stood at 11,328 in August 2023, making it the second-highest monthly figure ever recorded, up by 22 percent compared to the previous year.
Dubai’s real estate market offers options for a wide range of budgets, from modest to extravagant, making it an attractive destination for investors from diverse backgrounds. Whether you’re seeking a luxurious apartment in the heart of the city or a spacious villa in a serene community, Dubai’s real estate market aims to offer something for every kind of investor.
Taimur Khan, Head of Research – MENA at CBRE in Dubai, said: “Dubai’s residential market continues to register substantial levels of growth.”
“Although demand remains steadfast, we are seeing that the rate of rental growth continues to moderate, making this the seventh consecutive month in which this has occurred,” Khan explained.
According to CBRE’s recent analysis, the highest apartment and villa asking rents annually was recorded in Palm Jumeirah, with average rents reaching AED257,173 and AED1,108,164 in Al Barari.
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