The city ranked in the top 10
Dreaming of owning your first home? Well, you might just be in the perfect place for it. Abu Dhabi has just been named one of the world’s 10 most affordable cities for first-time homebuyers, in a study conducted by real estate developer Bloom Holdings.
As the only city outside Europe to be included, Abu Dhabi ranked alongside cities like Vilnius, Dublin and Budapest.
To come up with the findings, researchers evaluated affordability using key indicators such as average monthly salary, required deposits, and savings rates. All these factors were used to calculate how long it would take someone starting to save at 23 to afford their first home.
In Abu Dhabi, that is six years, placing the average age of a first-time buyer at 29 years old.
The findings shine a spotlight on the importance of the house price-to-income ratio, a key measure that often determines how realistic homeownership is for younger generations.
Abu Dhabi was the only non-European city to be included, with most budget-friendly destinations for young buyers largely concentrated in Eastern Europe.
Bucharest in Romania, Budapest in Hungary and Vilnius in Lithuania – where lower property prices and higher savings rates help ease the path to ownership – came out on top.
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For Abu Dhabi, strong average incomes and the UAE’s zero per cent income tax are two major factors that help young people get on the property ladder, despite the expensive property prices.
“Abu Dhabi stands out for having the youngest potential first-time buyers outside a city in Europe. Young people in Abu Dhabi can buy their first home at 29 years old after six years of saving. While an average deposit of $138,389 is required, 0% income tax and very high monthly earnings, at an average of $4,877, means it’s quick and easy to put the funds aside” the study states.
“Abu Dhabi property is modern, energy-efficient and stylish. Young professionals often look for apartments for sale in the latest high-rise developments, attracted to the great city views and excellent amenities these buildings offer. Abu Dhabi also offers the most generously sized city center property within this list of top cities for youngest first-time buyers, with the median property size an impressive 153 m².”
On the other side of the spectrum, cities like London, Sydney and Tokyo came out as the top cities for the oldest first-time homebuyers.
Here’s the full list:
City | Country | Price per m²(Center, USD) | Personal Income Tax Rate | Net Monthly Income(Est., USD) | Annual Savings (USD) | Deposit (USD) | Est. First-Time Buyer Age | Rank |
| Bucharest | Romania | 2,015 | 10% | 3,595 | 7,852 | 18,135 | 25 | 1 |
| Budapest | Hungary | 2,677 | 15% | 2,479 | 8,685 | 22,768 | 26 | 2 |
| Vilnius | Lithuania | 2,829 | 32% | 2,998 | 9,210 | 29,026 | 26 | 2 |
| Tallinn | Estonia | 3,302 | 20% | 2,598 | 8,013 | 34,671 | 27 | 3 |
| Oslo | Norway | 9,505 | 47% | 3,281 | 14,924 | 64,729 | 27 | 3 |
| Dublin | Ireland | 8,029 | 40% | 3,022 | 21,356 | 107,187 | 28 | 4 |
| Warsaw | Poland | 4,200 | 32% | 2,505 | 6,524 | 34,902 | 28 | 4 |
| Abu Dhabi | United Arab Emirates | 4,511 | 0% | 4,877 | 24,583 | 138,389 | 29 | 5 |
| Rotterdam | Netherlands | 5,602 | 50% | 3,172 | 11,952 | 71,678 | 29 | 5 |
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