One can benefit in many ways by investing in a property overseas. Of the several countries, Dubai offers favourable opportunities for potential buyers. Dubai, a city in the United Arab Emirates (UAE), is one of the fastest-growing cities in the world. Buying a property in Dubai can provide attractive returns on investment. In this article, we will discover how Indians can purchase properties in Dubai.
Check how Indians can buy a property in Singapore
Dubai property market
The property market in Dubai is growing and attracting several investors, including Indians. Dubai’s property prices are more affordable than in cities, such as London and New York. In addition, real estate buyers get tax-free returns. The city is known for its modern infrastructure and state-of-the-art facilities. Further, the ease of doing business and economic growth are other major factors that attracts investors to Dubai.
Where to invest in Dubai?
Dubai has several locations where Indians can invest in a property. Some preferred destinations for High-Net-Worth Individuals (HNIs) include Downtown Dubai, Dubai Marina, Business Bay, Dubai Sports City, and Jumeirah Lake Towers. These areas offer several options for those looking to buy apartments. Palm Jumeirah, Dubai Hills Estate, and Jumeirah Village Circle are top locations for investing in luxury villas.
Can Indians buy a property in Dubai?
In Dubai, foreign investors, including Indians, can get ownership in areas designated as freehold. According to the laws in India, buying a property in Dubai is legal and in accordance with the Foreign Exchange Management Act (FEMA) enacted in 1999. Moreover, the Liberalised Remittance Scheme (LRS) permits Indian residents to invest up to $250,000 in overseas properties.
The Dubai government has introduced golden visas aimed to attract more foreign investors. These visas have eased property ownership regulations for foreign residents. According to the updated property investment rules, investors purchasing real estate valued at 2 Mn Dirhams or more can apply for a 10-year visa.
How to buy a property in Dubai?
- Indians can buy properties in areas that allow foreign property ownership. One can check with the authorities to find a list of areas designated for freehold properties.
- Select a property based on your requirements in terms of location, property area, etc.
- Create a Memorandum of Understanding (MOU) or use Contract Form F, available on the official Dubai Land Department (DLD) website. The document specifies the terms and conditions related to the sale value of the property.
- Sign the MOU and pay a 10% security deposit. The amount will be refunded upon completion of the property transfer.
- Obtain a No Objection Certificate (NOC) from the property developer. The certificate confirms that the developer has no objections for the property transfer.
- Provide relevant documents to the Dubai Land Department (DLD) office along with the seller. Attach the NOC, MOU, and relevant documents with the right cheque for the agreed sale price.
Costs and taxes on buying properties in Dubai
The price of properties in Dubai preferred by Indian investors are in the range of 1.5 Mn to 1.7 Mn Dirhams (Rs 3.3 Cr to Rs 3.8 Cr). One must consider the cost related to purchasing a property in Dubai, which include expenses related to mortgages, agent fees, NOC charges, etc.
FAQs
Should you notify the Indian government when buying a property in Dubai?
Under the Foreign Assets (FA) Schedule and the Black Money (Undisclosed Foreign Income and Assets) Imposition of Tax Act (Black Money Act) in 2015, Indians are required to disclose their property holdings to the government.
Can Indian citizens buy properties in Dubai?
Yes. Indians can purchase properties in Dubai in areas designated for foreign property ownership.
Can we buy properties in Dubai permanently?
Foreign property ownership is allowed in areas designated as freehold. One can acquire freehold ownership rights over the property without restriction, usufruct rights or leasehold rights for up to 99 years.
Can I live in Dubai if I buy a house?
Foreign investors buying properties in Dubai worth over a certain amount are eligible to get residency visas.
How long can I stay in Dubai if I buy a house?
One can get a two-year residency visa if he invests in properties in freehold zones.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.
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