Young professionals earning between Dh10,000 and Dh15,000 are being advised to set aside between 20 and 30 per cent of their income if they plan to invest in property. Real estate experts say disciplined saving, coupled with salary growth, can help them afford a down payment within three to five years.
“For a property priced between Dh600,000 and Dh900,000, with a 15 to 20 per cent down payment, buyers should aim to save between Dh90,000 and Dh180,000,” Adriano Vichi, co-founder of Monopoly Properties AVS, said. “With savings of Dh2,000 to Dh4,500 each month, with disciplined budgeting and progressive salary growth, this is achievable within three to five years.”
Keep in mind that real estate investment is not only for high-income earners. “With the right strategy, even those with moderate incomes can enter the property market and start building long-term wealth,” Vichi said. By right strategy, he means understanding the market, choosing the right area based on your budget and expected returns, and timing your entry well.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
For early career professionals, dipping your toes into the world of property investment for the first time can seem daunting. However, with offerings such as tokenisation and fractional ownership, practically anybody can have a share in property.
Breaking barriers
Where it had once been challenging for professionals to invest when they were new to their careers, with barriers such as banks requiring a minimum of six months of salary history and a stable income that meets specific criteria, things have become much simpler now. Ayman Youssef, managing director of real estate company Coldwell Banker, said that real estate tokenisation means first-time earners and recent graduates can invest in fractional ownership for as little as Dh2,000.
In real estate, tokenisation refers to the process of converting the value of a physical property into a digital “token” that can then be bought and sold on a blockchain, which is a digital ledger that stores and shares information across a computer network.
Where to buy
Wondering where to invest in a place? One area that stands out to Youssef is Dubai South because of its strategic location next to Al Maktoum Airport. “With the development of the new Al Maktoum International Airport, this area is poised for major growth. The airport’s expansion is expected to drive significant demand for residential, commercial, and retail spaces.”
Another promising area, he said, is Town Square because of well-planned communities and “attractive property prices”. It’s promising also due to the fact that there are plans to improve connectivity between Town Square and Sheikh Zayed Road, and this is expected to boost demand and shoot up property values in the future, Youssef said.
Add-ons
The biggest mistake young investors can make is underestimating the actual cost of homeownership, says Vijay Valecha, chief investment officer of Century Financial, a brokerage based in Dubai. He said people tend to ignore additional expenses that come with owning a property, like insurance, maintenance, and utility fees, which can add up to a significant amount. “It makes sense to prioritise building a solid savings base before diving into direct real estate investments,” Valecha said, explaining how saving up can bring financial security and give more flexibility in responding to market opportunities.
Another mistake Valecha said young earners make is not having an emergency cushion. “Given that it’s the first job, priority should be given to an emergency fund,” he said. “A regular savings pattern should be inculcated, to accumulate around six months of living expenses in a liquid investment that could be used in personal financial setbacks like an involuntary job loss.”
“A young individual starting their first job might allocate their portfolio with 70 per cent in equities, 20 per cent in bonds, and 10 per cent in real estate as a starting point and adjust these allocations to align with their personal goals, risk-taking capacity, and income,” he advised.
A Dh500 start
Moreover, for those who have a lower budget, property technology platforms like SmartCrowd and PRYPCO lets investors own shares in Dubai properties for as little as Dh500 and Dh2,000, respectively. This has proved to be quite successful. PRYPCO’s founder, Amira Sajwani, declared that a tokenised property was fully funded in under 24 hours, with 224 investors making their contribution. She also claimed that the second property that was listed broke a record, selling in under two minutes.
Admittedly, not all investors feel the same about fractional ownership and co-investment platforms. “Personally, I remain cautious about these models. Real estate investing demands commitment — raising sufficient capital, conducting due diligence, and selecting the right property based on well-defined goals,” Zsombor Szokol, co-founder of Monopoly Properties AVS, said.
The reason for this, he said, is that these sorts of platforms come with caveats.
The investor would have limited asset control, lower liquidity, and income may be lower compared to directly owning the property.
“For those serious about real estate, a more traditional approach — based on direct acquisition and market knowledge — remains, in my opinion, the most effective path to building a solid portfolio,” Szokol added.
So, what’s the final verdict? Investing in tokenisation with your most recent salary, or saving up for months or years for direct ownership? It all comes down to personal choices and circumstances in the end. While it may look attractive to engage in the market when first starting off by putting in a few thousand dirhams, it is better to find out whether the benefits outweigh the risks.
With plenty of new initiatives being rolled out, investing in Dubai is becoming increasingly accessible. Earlier this year, the entity responsible for Dubai’s ever-growing real estate market, Dubai Land Department (DLD), launched the ‘Real Estate Tokenisation Project.’ Though still in its pilot phase, it will try to drive significant growth in the real estate tokenisation sector, with its market value projected to reach Dh60 billion by 2033, representing 7 per cent of Dubai’s total real estate transactions.
Hind Aldah
Hind Aldah covers business, tech, crypto and all that jazz for a younger audience. In her spare time, you will find her playing classical guitar, painting amateur oil paintings, or crocheting the same old scarf that leads nowhere.
