Are you thinking about buying property in Dubai from India? If yes, here are smart tips on how to buy Dubai property from India at the best price. The UAE is reportedly home to over 8 million emigrants based on figures published and compiled over the past two years.
These immigrants reside in the country for one year to fifty years. For some, the United Arab Emirates is a second home, and many others retire and return to their home country. Quality of life, tax-exempt income, and savings are reasons for these swings.
With its world-renowned infrastructure and architecture, Dubai is a real estate haven. Most foreign property investors are eyeing the Dubai property market, and India is one of Dubai’s top property investors. So, if you’re also wondering if you can buy property from India in the emirate, scroll down for quick tips on how Indians can purchase property in Dubai.
But before diving into how Indians can buy a home in Dubai, let me first tell you how and why Indians invest in Dubai real estate.
Can Indian citizens buy property in Dubai?
Yes, Indian citizens can buy property in Dubai. For several years Indian has been one of the leading nationalities to invest in real estate property in Dubai.
Buying property in Dubai is legal under Indian law. The Foreign Exchange Management Act (FEMA), passed in 1999, regulates such purchases by Indian citizens. Residents can also invest up to $250,000 in foreign real estate under the Free Remittance Scheme (LRS).
Investor interest in the real estate market has increased with the Dubai government’s introduction of the ‘Golden Visa.’ These visas have eased home ownership restrictions for ex-pats in Dubai. Under the new real estate investment regulations, an investor who purchases property worth AED 2 million can apply for a 10-year residency visa.
Why do Indians prefer to buy property in Dubai?
Due to the current resilience in the Indian economy and the lack of incentives to invest significantly in the property market, Indian property investors are looking for alternative options with higher returns. For this reason, most Indian real estate investors are eyeing Dubai.
Rising property prices in India are another primary reason why buying property in Dubai has become a trend for Indians. According to reports, more than 25% of foreign property investments in Dubai are made by Indians. Indian property investors enjoy up to 8-10% tax exemption and solid capital growth in Dubai, which is immune to currency fluctuations.
The property registration process in Dubai is much better and more accessible than in India. If an Indian has invested more than 1 million United Arab Emirates dirhams in real estate in Dubai, he may get a Dubai residency visa. Real estate costs in Dubai are significantly cheaper compared to India.
Properties in Dubai are sold by carpeted square footage, while in India, they are sold by built square footage. Most of the apartments for sale in Dubai come with pre-installed facilities and amenities. However, in India, dwellings usually consist of a core and shell. In addition, parking in Dubai is free, but there is a separate charge in India.
Investments are one of the most efficient sources of increased profit margins. Real estate investment aims to achieve maximum return through passive income. Dubai is the number one choice for large investors regarding property investment.
Buying real estate or goods at a lower price and reselling them when the cost of the property rises can be very profitable. The largest investors prefer Dubai as it offers many advantages to gaining profits.
5 Tips on How can Indians buy Property in Dubai?
Before delving into how Indians can buy property in Dubai, first decide if your intent is just an investment or if you want to buy one yourself. Since appropriate market research is required, for example, when purchasing an investment property, it is almost always rented out. Therefore, you should buy properties in areas with the highest rental yields.
It would be best if you had a clear idea of the agent’s type. Connect with legal and experienced real estate agents. Understanding the benefits of Due diligence, Understanding the Dubai buying Process Documents Required to purchase Property in Dubai, calculating taxes and fees, understanding mortgages, and understanding leasehold and freehold lands.
For investment purposes, he would buy a one- or two-bedroom apartment rather than a villa. Villas seem more spacious, but apartments have higher rental yields than villas.
1. Contact an accomplished Real estate consultant
- You should contact a seasoned and well-versed real estate agency, especially in a real estate hotspot like Dubai, which is the recommendation of an expert.
- Do thorough research and interview a few real estate agents to find the one with the most options.
- A real estate agent who offers the best commission in the industry and extensive information on all kinds of properties.
- Verify the legitimacy of the real estate agent you contact by looking up their Real Estate Regulatory Agency credentials online.
2. Recognize the benefits of being cautious
- Asking as many questions as possible is always a good idea, whether or not you’re purchasing an off-plan house in Dubai.
- The next step in buying a home in Dubai is to confirm the developer’s and the real estate agent’s reputation.
- Cross-check the construction quality and their commitment to delivery if you purchase from a developer.
- Double-check their credentials and registration with the Dubai Land Department when purchasing from a real estate agent.
3. Recognize the Dubai Purchasing Process
- Always be aware that you can purchase a house in Dubai either off-plan from a developer or as a resale from a private seller.
- Foreign investors must therefore produce both their passports and the reservation stating the terms of the contract when buying an off-plan property. For sales and purchase agreements, 5%–15% of the reservation fee is required.
- Ensure the contract specifies the completion date if you’re buying a property that is still being built.
- Additionally, the developer must provide the remuneration if the completion date is pushed back (if any).
4. Documentation required
Buying real estate property in Dubai has been considerably simpler for foreigners in recent years. You need few information and documentation to buy property. Submit your passport as identity documentation. Although you don’t need a residency permit to buy property in Dubai, you do need to maintain it if you want to stay there.
5. Do the taxes and charge calculation
When purchasing a home in Dubai, there are a few costs to keep in mind:-
- These include the costs associated with a mortgage, a real estate broker, a developer, etc. Therefore, it is worthwhile to calculate the precise cost of these fees and add them to the 5% of the overall property price.
- Always factor in the cost of the property, the deposit, the transfer fee, the purchase fee, and the difference in exchange rates.
- Even though it is not legally necessary, it is advisable on the side of caution to hire a real estate attorney to assist with the paperwork, including the lawyer’s fee, together with the registration fees of the property.
Even though you would know how to buy a house in Dubai from India after studying these factors, contacting seasoned real estate professionals is still preferable to make your property acquisition simple.