How much of your salary are you really spending on housing?

We’ve all heard about the 30% rule. For those who don’t know what it is, it’s a rule of thumb that is recommended by financial advisers on the percentage of monthly income that should be spent of housing expenses. According to some, a monthly rent which consists of no more than 30% of a person’s income is considered to be affordable. Does this rule really apply to Dubai residents?


Here is what our expert found out:

  • Individuals and families with a lower income ranging from 8k and 15k spend between 37% and 52% of their monthly salaries on housing expenses. The percentage is at the highest when it comes to families with children, and it is far off the 30% rule.
  • Households earning between 15k and 25k a month tent to spend between 34% and 49% of their monthly incomes, where families with children spend noticeably higher than singles or families without children.
  • Residents earning between 20k and 35k are the closest to the rule of thumb, as they spend between 27% and 33% of their monthly incomes on their homes.
  • Residents at the higher end of the job market earning from 50K and above tend to spend between 18% and 33% of their income on rent depending on their marital status. Singles definitely spend less at 18% while families of 2 kids spend 33%.


Mr. Vince Truong from US CFP® and Partner at Holborn Assets Ltd, recommends residents of Dubai to be aware of their financial situations and track their spendings in order not to fall into the trap of credit. “It is very easy to get caught up in the glitz and glamour of the city, but it is important to stay realistic and consider alternative options if you realize that a large portion of your salary if going to housing expenses,” he explained.

Below are listings for properties suitable for every income range:

Check out studio apartments for rent in Dubai for less than 50,000AED.

Check out apartments for rent in Dubai for less than 80,000AED.

Check out apartments for rent in Dubai for less than 120,000AED.

Check out apartments for rent in Dubai Marina, DIFC, JBR, The Palm Jumeirah starting from 65,000AED.

Check out villas for rent in Arabian Ranches, Motor City, Palm Jumeirah, Jumeirah Islands starting from 140,000AED.

How did we do it?

The above research was conducted by with the help of Mr. Vince Truong. We have gathered information on various income brackets to find out the real percentage of monthly salaries spent on housing expenses.

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