At first glance, the price of a property in Dubai will make you wonder if any affordable properties are available anymore.
Let us tell you, Dubai is not all expensive if you know how to hunt down properties. For example, recent studies show that Dubai is almost 32.57 percent cheaper than places like New York.
So, the answer to millions of homeowners’ questions: Are there affordable homes in Dubai
Yes, there are tons of affordable homes.
In this blog, we will walk you through the types of affordable homes available in Dubai, the general amenities you get in affordable homes, a list of top affordable projects under $500k that are available for sale, and most importantly, financial options you can avail that makes property owning seamless.
Ready to take a deep dive?
Let’s get started!
Types Of Affordable Homes Available In Dubai:
Apartments: Only some people need a mansion to settle down. If you love making small spaces cozy, apartments in Dubai will exceed your expectations. Apart from your units, you can access basic amenities and have a lot of neighbors to interact with. These apartments are fully furnished and include all amenities created explicitly for professionals visiting Dubai for work purposes.
Why Owning An Affordable Home In Dubai Is Profitable:
ROI Of The Property:
The ROI of affordable properties in Dubai is noteworthy. Why? Because there’s tough competition between renowned communities. Have a look at the ROI of top communities in Dubai:
· Jumeirah Village Circle (JVC): 7.57% ROI
· International City: 7.25% ROI
· Damac Hills: 6.78% ROI
· Dubai Marina: 6.70% ROI
· Downtown Dubai: 6.31% ROI
· Business Bay: 5.65% ROI
· Dubai Hills Estate: 4.46% ROI
· Palm Jumeirah: 3.34% ROI
No matter where you choose to reside among these communities, a lucrative ROI is necessary.
Rental Yield Of Properties In Dubai:
The average rent of apartments in Dubai is approximately 180,000 AED per year. Considering you purchase a property at $500k and make any additional cost per year round up to 10,000 AED, you will get a rental yield of 9.80%.
Anything above 8% rental yield is considered excellent in Dubai. The percentage increases if you buy a property in communities like Damac Hills, JVC, etc.
Amenities Available In Affordable Homes In Dubai:
When you pay for a unit in Dubai, you get an additional offer that no other palace can offer. It is access to top-notch amenities for a lifetime. Here is the list of basic amenities in affordable apartments in Dubai:
· Sports services
· Swimming pool
· Kids’ play area
· Retail stores
· Dining outlets
· Running track
· Medication area
· Party hall
· Dog park
· 24*7 security
Unit Plus Community:
Think of it as a bumper offer that is too good to pass off. Buying an affordable property in a renowned community gives you a sense of belonging and a welcoming vibe. You can indulge in group activities; there’s always someone to talk to and cheer you up. In a nutshell, you get to build relationships that last forever, treasure memories, and, most importantly, reside in a place you belong to.
Best Affordable Projects In Dubai:
Bayz 101 by the Danube- First on our list, it has to be one of the most luxurious yet affordable properties by Danube Properties. The project is strategically planned and offers an unexpectedly lavish lifestyle to residents. The property is equipped with all modern amenities, and at each step, you will be amazed at its interiors and features.
They have everything for all. You can destress yourself in a community spa and sauna; fitness centers for fitness freaks, an Olympic swimming pool, and other amenities are also offered.
The community has studios, 1,2 and 3 BHK apartments.
· Danube Properties offers a hassle-free payment plan for this project where you can pay 10% of the total amount as a down payment, you may pay 63% while the construction is going on, and 1% can be paid during the time of possession & post possession you may pay the rest remaining amount.
· In Bayz 101, you can get 1,2, 3, and 4 BHK apartments with private pools starting at AED 2.1 million to AED 6.2 million or $57K to 169k.
Damac Altitude at Business Bay, Dubai – Situated in one of Dubai’s most desirable and prime locations, this luxurious and affordable property has been capturing much interest. The project is developed at Business Bay, a significant cyber hub of Dubai that symbolizes comfort, luxury, and work. As the name suggests, the “Altitude” project provides a high-rise building with modern and exquisite designs, allowing residents a luxurious and convenient life to see eye-catching views.
· What makes the project unique is its amenities and features that have been curated keeping in mind kids, senior citizens, families, professionals, and business people.
The property consists of studios, 1,2,3, and 4 BHK apartments.
· You can afford a studio in this fantastic residential community at just AED 1.8 million on USD 49k. Here, 1,2,3 1-bedroom apartments are priced at AED 1.93 billion or USD 53k, AED 3.30 million or USD 90k, and AED 6.28 million or USD 171k.
Treppan Living at Dubai Islands- Experience the dreamland of Treppan Living at Dubai Islands, where developer Fakhruddin Properties has introduced a new project. It is a luxury project that does not offer luxurious amenities at an affordable rate but offers impressive scenic beauty and unforgettable memories that will get printed in your heart forever.
· Here, you get world-class amenities with an exclusive spa, jacuzzi, play areas, swimming pools, dual air purification, and many more features.
· The project offers a flexible and easy payment plan. You just need to pay 10% of the total amount as a down payment and then can carry forward the cycle in a 50:50 proportion where you will pay 50% of the remaining amount during the construction and the rest 50% during the handover.
· Here, you get a 1BHK apartment at AED 1.75 million or USD 477k, and 3BHK apartments are available at AED 5.9 million or USD 160k. You can also own a four-bedroom penthouse at AED 10 million or USD 273 K.
Sky Residencies at Sky Expo, Dubai South- The second last on this list is the most famous Sky Residency in the Sky Expo of Dubai South. It is a fantastic project that is a treat to the eyes, and it feels like a dream to stay in a luxurious and grand place like this.
· From schools to hospitals and parks, they have everything needed to make your life comfortable and luxurious.
· Also, enjoy a simple payment system where you can pay 10% of the total amount as a down payment and later carry out the remaining payment in a 50:50 system.
· The starting price of 1,2,3 BHK apartments in Sky Residence is AED 1.7 million or USD 490k, AED 2.80 million or USD 762k, AED 4.2 million or USD 1150K.
Skyhills Residence at Dubai Science Park – A well-designed residential project with a unique architecture developed at one of Dubai’s demanding locations at Dubai Science Park. Strategically located near Al Barsha South 2, Al Barsha South on Al Kail Road, residents can easily commute to other parts of the city via metro or bus routes.
· A buyer-friendly payment system is provided where you can pay the amount in a 60:40 proportion. You have to pay 20% of the total amount as a down payment; then you can pay 30% during the construction time, 10% during the time of handover, and the rest you can pay after handover.
· You can get 1 BHK apartment at AED 0.9 million or USD 246K and 2 BHK apartments for AED 1.2 million or USD 326K.
This part will discuss various financing opportunities for customers to buy their dream homes. They are as follows:-
Government-Backed Financing Program:
The UAE government helps foreign investors own their homes in Dubai by offering various financial schemes such as affordable housing programs and favorable loan terms. With this help, buyers can get home loans and subsidies at times, and the eligibility criteria of these schemes are very flexible.
In the UAE, homeowners can get a house mortgage from a bank. The bank checks a few factors like income, previous loans, and other details. After evaluation, they set an interest rate. Once your mortgage application is approved, you can purchase your property and repay the bank monthly.
Do note that if you’re not from the UAE, you must pay at least 25% of the total price down. The government has set rules on how much loan you can get:
For UAE Nationals:
If you’re buying your first home worth up to AED 5 million, you can get a loan for up to 80% of the property’s value. For properties over AED 5 million, the loan can be up to 70% of the total price. If you’re buying a second home, you can get a loan for up to 65% of the property’s value.
For Foreign Buyers:
If the property is worth up to AED 5 million, you can get a loan for up to 75% of the purchase price. For properties over AED 5 million, the loan can be up to 65% of the total price. If you’re an expat buying a second home, the loan is limited to 60% of the property’s value.
Developer Financing Option:
Developers offer various financing options where you can pay the amount in different installments. For instance, as per a 50:50 proportion technique, you can pay 10% of the total amount as a down payment, then you can pay the remaining 40% during construction and the rest after the property is handed over. Similarly, developers like Danube offer a 1% payment plan in which you must pay just 1% of the monthly installments in over 30 installments.
Lastly, introducing the affordable housing culture in Dubai started in 1999 with the help of the Sheikh Zayed Housing Program. Since then, many real estate developers have brought affordable housing projects to Dubai, and few will come in the coming years. Yes, Dubai is where luxury meets modernity, but it is also where modernity meets affordability. You can get affordable housing in Dubai for under $500k.
What are a few areas where you can find affordable properties in Dubai?
Dubai South, Damac Hills 2, Jumeirah Village Circle, and Dubai Investment Park are a few places where you can find affordable properties in Dubai.
What is the minimum salary required to purchase a $500k property in Dubai?
Generally, in any other place in the world, to finance a $500,000 home with a 20-year loan at a fixed 5% interest rate, you’d need an annual income of around $110,000 or more. This estimate requires 2.5 to 3 times your yearly income to comfortably cover mortgage payments, insurance, schooling, and other living expenses.
However, here’s the catch. With Dubai’s developers offering easy payment plans and the government offering zero tax policy, you can do with much less monthly income. That’s why Dubai is one of the best places to invest in.