Why Dubai?

Investors are looking for alternative options that offer higher yields due to the current economic uncertainties and the lack of investment incentives, particularly in the real estate sector. For this reason, Indian real estate investors now favour Dubai as their destination. The trend of Indians buying real estate in Dubai is also influenced by the rising cost of real estate in the nation. The process of registering a property in Dubai is far simpler than it is in India. There are several alternatives for investing in Dubai real estate and an Indian national who buys a house for more than INR 4.5 crores is likely to be given a Golden visa for ten years.

According to the Better homes Residential Market Report 2023, Indians overtook other nations as the largest investors in Dubai's real estate market during the second and third quarters of this year. They topped the country-by-country rankings in Q2 and Q3. Because of its excellent infrastructure, consistent economic growth, tax-free investment environment, high rental returns and affordable property prices, Dubai's real estate market is a wonderful option for Indian investors and offers the perfect setting. Dubai's appeal as a long-term investment location is expected to increase as the city's population and real estate demand both expand. To make buying a property easier, consult with an experienced real estate agent.

According to recent data, Indian investors invested 7.3 billion dirhams in Dubai real estate during the first quarter of 2023, making up 20% of all deals. Rich Indians arrived in Dubai and made investments in the emirate's real estate sector as a result of the UAE's efforts to get golden resident visas. According to a report on the website, Indian investors made around AED 83.62 billion in real estate industry contributions to Dubai between 2015 and 2021. Because the real estate industry is predicted to reach 300 billion dirhams in sales transactions by the end of 2023, it is anticipated that the number of wealthy Indian investors will rise by 107% by 2027.

Who can buy Real Estate in Dubai?

1.Understand Freehold Ownership

Under the Foreign Exchange Management Act (FEMA) 1999, any Indian citizen whether residing in the UAE or not can purchase real estate in Dubai. This opens up exciting opportunities for Indian investors looking to diversify their real estate portfolios.

Dubai offers freehold properties where foreign investors can have full ownership rights. Indians can invest in these popular freehold areas:

• Villas/Townhouses: Arabian Ranches, DAMAC Hills, Palm Jumeirah, Dubai Hills Estate, Al Furjan.

• Apartments: Downtown Dubai, JVC, Dubai Marina, Business Bay, JLT.

These areas are highly desirable due to their prime locations, modern amenities, and strong rental yields.

2.Pre-Approval from Dubai Land Department (DLD)

Before purchasing property, Indian investors must obtain pre-approval from the Dubai Land Department. This process involves submitting essential documents, including:

• Passport

• Identification card

• Proof of income

• Bank statements

Pre-approval ensures a smoother transaction process and verifies the buyer’s eligibility.

3. Mandatory Disclosure to Indian Government

Indian investors must disclose their Dubai real estate investments to the Indian government. This is required under the Foreign Assets (FA) Schedule ITR and the Black Money (Undisclosed Foreign Income and Assets) Imposition of Tax Act. Failure to comply with these regulations could result in penalties, so transparency is crucial.

4. Financing and Loan Options

Dubai banks offer mortgage options to foreign investors, including Indians. However, loan amounts vary based on the type of property:

• Residential Properties: Up to 80% of the property value.

• Commercial Properties: Up to 60% of the property value.

Since commercial properties require a larger down payment, buyers should plan their finances accordingly.

5. Methods of Purchase

There are two primary ways to purchase real estate in Dubai:

• Off-plan Properties: Bought directly from developers. Investors must provide their passport and a reservation agreement outlining the terms. Typically, a 10–20% down payment and 4% DLD fees are required.

• Resale Properties: Purchased from private sellers, often involving negotiation and immediate transfer of ownership.

6. Required Documentation

Dubai has streamlined its property purchasing process. For Indian buyers, only a valid passport is necessary for identification. While residency permits are not required to purchase property, those planning to live in Dubai will need one.

The UAE government offers a six-month Property Holders Visa to investors purchasing property worth over INR 4.5 crores. This visa allows investors to stay in Dubai while conducting due diligence and completing the transaction.

7. Property Holders Visa

8. Taxes and Fees

Investors must account for additional costs associated with purchasing real estate in Dubai. These include:

• DLD Fee: 4% of the property price.

• Title Deed Issuance Fee: INR 11,000.

• Admin Fees:

  • INR 13,000 for apartments and offices.

  • INR 10,000 for land.

  • INR 1,000 for off-plan properties.

• Agent's Commission: 2% of the property price.

• NOC Charges: Ranging from INR 11,000 to INR 1,10,000.

Proper budgeting for these expenses ensures a hassle-free investment experience.