How much money do I need to invest in Dubai?
We will answer your question, How much money do I need to invest in Dubai? in this blog. We discuss the most important costs, with a focus on payment plans, additional costs, and the minimum investment you need from the start and during the repayment period.
The Minimum Purchase Price
The minimum investment in Dubai depends greatly on the location and type of property. For new build projects, prices in freehold projects often start around AED 500,000 (approximately $165,000) for a studio in up and coming areas.
However, in popular and central areas such as Downtown Dubai or Dubai Marina, prices can start from AED 1.5 million (approximately $410,000) and increase as the location and amenities become more exclusive.
We will assume the cheapest option of $165,000 in this blog. To answer our main question, we will divide the costs into three parts:
1. Your Down Payment with a Payment Plan
One of the most attractive aspects of investing in new construction projects in Dubai is the flexibility of the payment plans. Developers often offer schemes where you only have to pay a small portion of the purchase price upfront. This often starts with a 10-20% down payment, followed by regular payments during the construction period. In some cases, a large portion of the amount can even be paid after the completion of the project. This allows investors to maintain their liquidity and invest in the project gradually without having to commit large sums of money right away.
How much money do I need to invest in Dubai?
Minimum 10% down payment = approximately $16,500.
2. The Extra Costs of Purchasing
Buying a off plan property in Dubai is more than just the purchase price. You also need to consider a number of additional costs that come with the purchase.
- Registration Costs: These are usually 4% of the purchase price and are paid to the Dubai Land Department (DLD).
- Administration Costs: For new construction projects, the administration costs vary per developer, in general you can expect a one-off fee of $2,000 for this.
How much money do I need to invest in Dubai?
4% Dubai Land Department + $2,000 administration fee = approximately $8,600
3. Ongoing Costs of Your Payment Plan
If we take the example of the $165,000 house and pay 10% of this down, that leaves $148,500 to be paid. Let's assume that there is a payment plan is with post handover payment plan. So suppose you have 5 years to pay off this amount, that is 60 months. So you pay plus minus, depending on how the payment plan is put together, $2,475 per month.
How much money do I need to invest in Dubai?
$2,475 per month
Conclusion: How much money do I need to invest in Dubai?
As a starting deposit you need at least $25.100.
&
Approximately $2,475 for the monthly instalments.
This does not assume the use of financing.
Does this sound like an opportunity for you? We would be happy to explain more about the options that fit your budget. Send us an Whatsapp Message
Article references: Box 3 | Volkskrant | Telegraaf | ABN |
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