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Can Indian buy property in Dubai? Guide for Indians

Dubai’s sought-after real estate market has positioned itself as a premier destination for property investments, capturing the attention of global investors, including those from India. One frequently asked question revolves around the ability of Indians to buy property in Dubai, and the answer is a resounding YES– Indians can indeed purchase property in Dubai.

This article aims to serve as a comprehensive guide for Indian individuals looking to invest in Dubai’s real estate. Throughout the process, we’ll explore the legal procedures, essential prerequisites, and key considerations. With a clear affirmation that Indians have the opportunity to own property in Dubai, we provide valuable insights to facilitate a smooth and informed investment journey in this vibrant city.

Top 5 Reasons Why Indians Should Invest In Dubai Real Estate

The growth in Dubai is ceaseless. Here are the top five reasons compelling Indians to consider investing in Dubai’s Property Market.

• Thriving Economy

Dubai’s rapid expansion within the United Arab Emirates signifies a progressive economy that fosters dynamic business opportunities. This growth fuels population increase and a global demand for accommodations.

• Lucrative Rental Yields

Dubai properties boast high rental incomes and exceptional architecture. The average return on property in Dubai sits at around 7%, surpassing many other countries.

For instance, Hong Kong offers a 2.3% return, London around 2.76%, emphasizing the attractiveness of investing in Dubai real estate.

• Tax-Free Earnings

Dubai’s tax-free income strategy stands as a significant draw. Living in a country without an income tax is appealing. Personal taxation, a considerable expense elsewhere, does not exist in Dubai, save for foreign banks and large oil companies.

• Diverse Residential Options

Dubai boasts a varied property portfolio, offering a plethora of villas, studios, and residences in upscale neighborhoods. This diversity in residential offerings attracts investors to Dubai’s real estate market.

• Outstanding Lifestyle Offerings

Dubai embraces diverse lifestyles and cultural nuances. Its modern, upscale lifestyle magnetizes lucrative job opportunities and high salaries. With reasonable and budget-friendly property prices, Dubai offers options for luxurious living and sound investments.

How Do You Buy Property In Dubai From India?

Are you an Indian seeking to invest in Dubai’s real estate? Here are straightforward steps to help you purchase your dream property in Dubai.

• Step 1: Property Assessment

Start by defining your property preferences. Explore options like standalone villas, estates, and apartments. This step is crucial, especially if you’re an outsider eyeing a purchase. Some notable projects to consider include Jumeirah Lake Towers, Downtown Dubai, The Meadows, Dubai Marina, among others.

• Step 2: Online Search

Initiate your search online, a common starting point in property hunting. Properties are available through estate agents or developers. Estate agents handle previously owned properties, while developers offer completed or ongoing projects.

• Step 3: Engage an Estate Agent

Consider hiring an estate agent to navigate your property requirements. An agent helps avoid pitfalls and offers solutions. Typically, estate agents charge 3% to 5% of the property’s value. Opt for a registered agent under the Real Estate Regulatory Agency (RERA). 

Well, we have good news for you. Mayfair Properties has a pool of qualified real estate agents that can guide you on every step of the way while investing in a property.

• Step 4: Financial Criteria in Dubai

Dubai’s eligibility mandates require a valid visa. Investors aiming to reside for half a year can secure a Property Holders Visa by purchasing a property around $1 million, classified as an individual purchase, not corporate.

Indian residents can remit up to $250,000 annually abroad. Real estate investors spending at least 1 million dirhams qualify for a three-year resident visa. A 5 million dirham investment secures a five-year residency visa, inclusive of permits for spouses and children.

• Step 5: Off-Plan Property Purchase

Submit a reservation form outlining the off plan property details, including personal data and payment plans, along with your passport.

• Step 6: Payment Process for Off-Plan Property

Once the reservation is confirmed, pay the initial reservation deposit. Sign legal documents and secure a copy containing essential information like structure details, handover dates, and contractual outcomes.

• Step 7: Buying Resale Property

Execute a Memorandum of Understanding (MOU) with the seller, agreeing on specifics like purchase date and cost. Submit a non-refundable 10% initial installment and pay the real estate agent’s 3-5% commission.

Upon completing these steps, finalize the property purchase by paying the seller the total property value. The Dubai Land Department assists in completing the administrative procedures.

Things to Consider Before Buying Property in Dubai as an Indian

Dubai stands as an enticing hub for foreign real estate investors. There are numerous reasons why investing in Dubai’s real estate surpasses the Indian market. However, the regulations for property purchases vary slightly between UAE nationals and Indians. 

Here are vital points to bear in mind before buying property in Dubai as an Indian:

• Understanding Freehold Ownership

For Indian investors, specific areas called freehold areas allow property purchases. Renowned locations like Dubai Hills Estate, Dubai Marina, and Palm Jumeirah offer high rental yields. 

Additionally, Dubai International City and Dubai Silicon Oasis cater to foreign investors with more moderate budgets. Understanding these areas is crucial to make informed investment choices.

• Securing Pre-approval

Indian real estate investors must obtain pre-approval from the Dubai Land Department before purchasing property. This entails submitting essential documents such as your passport, ID card, proof of income, and financial statements.

• Full Disclosure to the Indian Government

Under the Foreign Assets Schedule and the Black Money (Undisclosed Foreign Income and Assets) Imposition of Tax Act, Indian investors must disclose their Dubai property purchases to the Indian government. This obligation should be understood prior to buying property in Dubai.

• Understanding Financing and Mortgages

Indians can seek loans and mortgages from Dubai banks. However, banks offer different maximum loan-to-value (LTV) ratios for commercial and residential properties, with the LTV ratio lower for commercial properties.

• Understanding the Buying Process for Off-Plan and Ready Properties

The purchasing process varies between off-plan and resale (ready) properties. Off-plan purchases involve submitting your passport and a reservation structure outlining payment plans and basic terms. A reservation deposit is also required.

For resale properties, both parties sign a Memorandum of Understanding (MoU). A non-refundable 10% payment of the property price is made to the seller, alongside settling the real estate agent’s fee (3-5% of the property price). Completing the purchase involves paying the total property price to the seller.

Conclusion

Indian investors should seriously consider Dubai’s real estate market. The city offers an ideal investment environment with high rental returns, tax-free investment opportunities, robust economic growth, reasonable property prices, and exceptional infrastructure. 

Anticipated expansion in Dubai is expected to drive up real estate demand, solidifying its status as a desirable location for long-term investment. If this information has piqued your interest in Dubai’s real estate, explore deeper into the type of properties Indians prefer to buy, the necessary documents, and understand the mortgage rules. 

Many Indians favor property investments in Dubai, so learning about how Indian citizens can purchase property in Dubai is crucial. Despite understanding these aspects, seeking guidance from experienced real estate agents remains advisable for a hassle-free property purchase from India.