Can Indians buy a property in Dubai?

Investing in overseas properties can yield various benefits, and among the numerous countries to consider, Dubai stands out for its favorable opportunities for potential investors. Dubai, located in the United Arab Emirates (UAE), ranks among the fastest-growing cities globally. Purchasing property in Dubai presents the potential for attractive returns on investment. This article will explore the process through which Indians can acquire properties in Dubai.

Dubai property market

Dubai's real estate sector is experiencing growth, drawing interest from numerous investors, including those from India. Property prices in Dubai are comparatively more budget-friendly than in cities like London and New York. Moreover, real estate buyers benefit from tax-free returns. The city is renowned for its contemporary infrastructure and cutting-edge facilities. Additionally, the business-friendly environment and robust economic expansion serve as significant attractions for investors considering Dubai.

Where to invest in Dubai?

In Dubai, there are numerous locations that appeal to Indian investors seeking property opportunities. High-Net-Worth Individuals (HNIs) often favor areas such as Downtown Dubai, Dubai Marina, Business Bay, Dubai Sports City, and Jumeirah Lake Towers. These locations provide a variety of apartment buying options. For those interested in luxury villas, Palm Jumeirah, Dubai Hills Estate, and Jumeirah Village Circle are among the top choices.

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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.

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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

Properties in Dubai favored by Indian investors typically fall within the price range of 1.5 million to 1.7 million Dirhams (equivalent to Rs 3.3 crore to Rs 3.8 crore). It's important to take into account various costs associated with purchasing a property in Dubai, such as mortgage expenses, agent fees, NOC charges, and so forth.

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