Can citizens of India purchase real estate in Dubai?
Indian nationals are among the top foreign investors in Dubai real estate market and can legally purchase real estate there. Indian nationals can purchase foreign property for up to $250,000 under the Liberalized Remittance Scheme (LRS). Under the recently enacted property investment regulations, investors may apply for a 10-year residency visa to stay in Dubai if they buy real estate valued at two million Dirhams or more.
Reasons Why Indians Should buy Property in Dubai?
Investment Without Hassle
In Dubai, fixtures and fittings are installed in most residential and commercial buildings. In India, parking spots are paid for separately, although almost all owners of properties receive one free of charge. People looking for housing will find a fully furnished lifestyle offered by on-site features and amenities like a gym, play area, and swimming pool. The government of Dubai strictly regulates the property market and will go to any lengths to safeguard the interests of investors.
Tax free Returns
Rental income in Dubai is tax-free and provides annual returns of roughly 6% to 10%. Furthermore, because Dirham is far more stable than the Indian Rupee, its value is less likely to be impacted by changes in the rupee.
Dubai's Stabilized Economy
Due to India's political and economic difficulties as well as a shortage of benefits for real estate investors in Off Plan Properties, Indians are now considering the overseas real estate market. Conversely, Dubai's economy is thriving and drawing more and more visitors and investors thanks to its rapid growth. Population growth as a result of this has increased demand for and occupancy rates of real estate properties
High ROI
Real estate in India is very expensive, which will limit future capital growth. Dubai's real estate market offers strong rental returns along with a notable yearly capital growth rate. Compared to many other major international cities, Dubai's real estate market offers a higher annual return on investment.
How can an Indian purchase real estate in Dubai?
Are you an Indian looking to purchase real estate in Dubai? These three simple tips can help you in purchasing your dream property in Dubai.
First Step. Important Property Review
The initial and most important bit of advice is to identify your property interests. A range of properties are available for you to look through, such as villas on their own, estates, and apartments. If you are an outsider wishing to purchase real estate, this is important.
Among the most notable projects are
Jumeriah Lake Tower
Dubai Marina
Downtown Dubai
The Meadows
Zazen One , and many more
Second Step. Launch an online search
As with any property search, the internet is a good place to start. Developers or real estate brokers may sell real estate. Real estate agents usually sell built-up properties that have been previously owned. Properties that may or may not be finished are sold by developers.
Third Step. Hire an Estate Agent
Hiring an estate agent to assess your property needs is a very simple process. The agent will assist you in avoiding trouble and resolving issues. An estate specialist typically charges between 3% and 5% of the property's value.
Which things we should know before buying in Dubai as an Indian?
For international real estate investors, Dubai is a safe place. Real estate investing in Dubai is better than real estate investing in India for a variety of reasons. However, there are some minor differences in the regulations governing the property of real estate by Indians and UAE nationals. The following are some things that Indian buyers should think about before making a real estate purchase in Dubai
Finding Pre-approval:
The Dubai Land Department requires all Indian real estate investors to obtain pre-approval before purchasing a property. You will need to submit several documents, including financial statements, proof of income, your passport, and an ID card, to receive pre-approval.
Knowing Freehold Ownership:
There are certain regions in which you can purchase real estate as an Indian. We refer to those places as freehold areas. The well-known freehold communities of Palm Jumeirah, Dubai Hills Estate, and Dubai Marina have excellent rental yields. For foreign investors on a tight budget, Dubai International City and Dubai Silicon Oasis are also worth considering. You must know exactly where to invest your money and choose the best property out of all of your options.
Recognizing the Off-Plan and Ready Property Purchasing Process:
When comparing the purchasing procedures for off-plan and resale (ready) properties, there are a few significant variations. When buying Off Plan Property, you will need to provide your passport along with the reservation structure, which contains information about the parties involved, the payment schedule, and the fundamental terms and conditions of the deal. Additionally, a reservation deposit must be paid.
A Memorandum of Understanding (MoU) is signed by both parties when they purchase a resale property. The seller then gets paid 3-5% of the property price, which is the real estate agent's commission, and 10% of the property price, which is non-refundable. The transaction is complete when the seller of the property receives payment in full.
Knowing Your Mortgage and Financing Options:
Indian nationals in Dubai are eligible to apply for mortgages and loans from banks. However, for residential and commercial properties, the maximum loan-to-value (LTV) ratio offered by Dubai's banks varies. The LTV ratio is lower for commercial properties than it is for residential ones.
Full Publication to the Government of India:
The Foreign Assets (FA) Schedule and the Black Money Imposition of Tax Act (Black Money Act) mandate that all Indian real estate investors report to the Indian government any properties they have acquired in Dubai. If you are an Indian buying real estate in Dubai, you should be aware of this beforehand.
