In Dubai, your $1 million investment can secure you more spacious properties compared to many major cities globally, according to experts.
Dubai’s real estate market has gained international recognition for its opulent properties and is currently witnessing a surge in global investments across the emirate.
A recent study by Savills reported a remarkable 44 percent increase in real estate transactions during the first half of 2023, with nearly 60,000 units sold.
Arabian Business consulted various property experts in Dubai, who revealed that a $1 million budget can open doors to diverse opportunities in the city’s bustling property market.
What Kind of Property Can $1 Million Buy in Dubai?
Dubizzle, a prominent Dubai property portal, highlights the abundant opportunities available for investors with a $1 million budget.
“Whether you desire luxurious living in Palm Jumeirah’s elegant one-bedroom apartments, the vibrant heart of Downtown Dubai with two-bedroom options, or spacious three-bedroom flats in Dubai Marina, Dubai’s prime properties offer competitive prices and more space compared to cities like Monaco, London, Beijing, Hong Kong, and Tokyo,” explained real estate expert Fibha Ahmed Sales, Director at Bayut and Dubizzle.
It’s essential to assess your purchase intention, whether for holiday homes, family dwellings, or pure investment purposes, as offerings can vary significantly.
“For those seeking healthy returns, consider investing in smaller units in suburban favorites like Dubai Sports City and International City, where studios and one-bed units often cost between $150,000 and $200,000, providing diversification for your property portfolio,” suggested Ahmed.
For affordability-focused buyers, JVC and Dubai Silicon Oasis are among the top recommended neighborhoods.
Jeffrey De Souza, Head of Mortgages at Betterhomes, proposed a strategic option involving using $1 million as a down payment and leveraging a mortgage to access even more opulent properties, including spacious seven-bedroom mansions and high-end apartments in areas like Palm Jumeirah, Downtown Dubai, Marina, or exclusive Golf Estates.
Dubai Real Estate and Salary Brackets: A Comprehensive Guide
De Souza delved into a comprehensive guide for investors, breaking down “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: Around AED3,250,000
- 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 this guide provides a clear understanding of real estate possibilities within different income brackets in Dubai.
Sam McCone, Managing Partner at McCone Properties, also shared insights into the salaries needed for various purchase prices:
- AED12,000 salary for a purchase price of AED1,000,000
- AED24,000 salary for a purchase of AED2,000,000
- AED36,000 salary for a purchase of AED3,000,000
- AED48,000 salary for a purchase of AED4,000,000
- AED60,000 salary for a purchase of AED5,000,000
Dubai offers a wide range of properties, from three-bedroom townhouses at The Springs to two-bedroom off-plan apartments in Dubai Design District with Burj Khalifa views, all within a $1 million budget.
Aligning Salary with Investment Goals
In Dubai’s real estate market, the relationship between your monthly salary and property investment goals is crucial. While this comprehensive guide offers a general overview, it is advisable to consult with financial experts and real estate professionals to create a tailored strategy aligned with your individual financial situation and objectives.
According to CBRE analysis, Dubai’s residential market has seen a more than 19 percent increase in sale prices and over 21 percent in rents in the past year. The residential market recorded 11,328 transactions in August 2023, a 22 percent increase compared to the previous year.
Taimur Khan, Head of Research – MENA at CBRE in Dubai, stated, “Dubai’s residential market continues to register substantial growth.”
CBRE’s analysis revealed that Palm Jumeirah had the highest annual apartment and villa asking rents, averaging AED257,173 and AED1,108,164 in Al Barari.
Publish Date: September 19, 2023
Source: https://www.arabianbusiness.com/industries/real-estate/dubai-real-estate-how-much-property-does-1-million-buy