Buy Studio Apartment in Dubai for only AED 109,280

Buy Studio Apartment in Dubai

Well this is true, you don’t have to be a millionaire, with dubai property prices going down, as an expatriate you can now buy a studio apartment in Dubai by paying Cash as low as AED 109,280, the only catch is that rest of the amount will be through Mortgage.

After researching various localities in Dubai, we are able to conclude that International City is the best place to buy a studio apartment with high ROI (return on investment).

The average sale price (net to seller) of studio apartment in International City is AED 341,500. If you apply for mortgage, the bank will finance only 75% of the total amount and rest 25% you have to arrange as a down payment, which in this case will be AED 85,375. Please note that some banks in UAE will only finance 60% if you are buying to rent otherwise they will finance up to 75% (not sure how they do it)

In order to process mortgage application, bank will charge 1% of the total value of the property which will be AED 3,415.

RERA (Dubai Land Department) fees for transferring the property will be 4% of the property value which will be around AED 13,669.

Real Estate Agent will charge 2% of the property value as a commission which will be equal to AED 6,830.

Therefore the total amount in hand required to buy the Studio Apartment in International City will be AED 109, 280.

Now for the mortgage lets say that bank financed 75% for 25 years based on 3.5% interest rate, you will be required to pay around AED 3000 as EMI which can easily be paid by renting the apartment. The average yearly rent of Studio Apartment in International City is around AED 37,800.

In addition to above we have given a comparison of Studio Apartments for sale in Dubai in various others localities as well.

International CityDiscovery GardensDubai Sports CityJumeirah Village Circle
Avg Sale Price (AED)              341,500        500,000529,000535,993
Down payment 25% (AED)85,375125,000132,250133,998
Mortgage Processing Fees 1% (AED)3,415 5,0005,290 5,360
RERA fees 4% (AED)13,66020,00021,16021,440
Real Estate Agent fees 2% (AED)6,83010,00010,58010,720
Amout in hand required to Buy (AED)109,280160,000169,280171,518
Approx EMI for Mortgage remaining 75% (AED)2,9884,3754,6294,690
Approx Monthly Rent (AED)3,1504,3774,6464,722

Note: These statistics are based on data gathered from various property portals and banks of Dubai between Jan-2016 to Jun-2016.

Property Portals: Advified, Bayut, Dubizzle, JustProperty, PropertyFinder, YzerProperty

Banks: ADCB, ADIB, Ajman Bank, FGB, HSBC

 

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