The real estate market of Dubai is thriving and growing faster than ever. It has become the most sought-after location for real estate investment. Individuals from across the world are interested in buying properties in Dubai, and India is not an exception to it.
If you are an Indian too and looking to buy a property in Dubai, this is the ultimate guide on how to buy property in Dubai from India. Let’s get started with the basic requirements.
Requirements for Buying a Property in Dubai from India
Buying a property in Dubai is not a difficult task. All you need is
- A valid passport and
- A resident visa for the sake of making a purchase.
A No Objection Certificate is also needed, which you can obtain from the Dubai Land Department. There is nothing that you need other than these documents. However, it is advisable to consult a professional real estate agent to facilitate the process.
Why do Indians Buy Properties in Dubai?
The real estate market in India is facing a low period because of the ongoing economic fluctuation. The return on investments has lowered, and the property market is facing the worst of its times.
The real estate investors of India are now looking for better opportunities, and that is why they are looking forward to investing in Dubai.
What’s more, the prices of real estate have soared in India. It has pushed Indian real estate investors to places like Dubai; Indians now own more than 25% of the properties in Dubai. Apart from that, the incentives that an Indian investor can enjoy in Dubai are huge.
Here are some other attractions for Indian investors to buy properties in Dubai.
- The investors can cherish tax-free returns of up to 8 to 10% in Dubai.
- The appreciation of AED is quite stable because AED is staked against USD
- The process of registration of property in Dubai is hassle-free and much easier than that of India.
- The cost of property in Dubai is way more value to money than in India.
- Owning a property worth 1 million AED can help in obtaining a residency visa in Dubai.
- The properties in Dubai are sold according to the carpet area, unlike India, where built-up areas are sold.
- The apartments in Dubai mostly come furnished, or at the very least semi-furnished.
- Parking in Dubai is free, whereas in India, it is paid for most of the time.
- Last but not least, the liberated remittance scheme of the Reserve Bank of India facilitates an Indian investor to transfer $250,000 to Dubai every financial year officially. This scheme expands to a limit of $500,000 for a couple, which is a decent sum to buy a luxurious property in Dubai.
Taking into account these benefits, it is undoubtedly a great deal to buy properties in Dubai from India.
Dubai is not only offering world-class amenities but also at much lower costs than India. One million dollars in Dubai can get you 162 sq. meters of area, whereas, in India, it accounts for only 99 sq. meters.
Here is a step-by-step guide to understanding the process of buying properties in Dubai.
How to Invest in Dubai Real Estate from India?
The first and foremost requirement is a bank account in Dubai and a registered Tax Identity Number.
Once you are done with them, start looking for opportunities, such as the real estate market. It is recommended to seek professional guidance from financial advisors, real estate brokers, and investment firms to navigate through the process. They can help you make informed decisions in the purview of the dynamics of the local market.
However, do not rely solely on advisory firms; watch out for the legal procedures yourself. All in all, good research and a calculated plan can help you buy properties that can turn out to be good investments in Dubai.
Step-by-step Guide on How to Buy Property in Dubai from India
Here are ten steps that can help you make a rational decision to buy properties in Dubai.
Know the Reason to Buy Property in Dubai
First of all, know why you want to buy a property. If you intend to buy it for yourself or rent it out, keep it in mind while researching the possible options.
For renting out a property, it has to be situated at a place that can produce a high rental yield. Similarly, apartments with 1 or 2 bedrooms are better suited for renting out as compared to villas.
Although it may seem like owning villas is more luxurious than buying apartments, it is a far better choice if considered for renting out, as rental apartments have a massive demand in Dubai.
Understand the Type of Property You Intend to Buy
The choice of most foreign investors is to own townhouses, apartments, and villas. These properties are mostly located in gated societies and provide world-class amenities such as gymnasiums, tennis courts, and magnificent swimming pools.
However, the foreigners are only allowed to buy the freehold properties. Among the permitted areas, Jumeirah Gardens, Al Hamra Village, International City, and Emaar Towers are the best possible options.
Look for Legal and Professional Assistance
It is always a good choice to seek advice from seasoned real estate agencies, especially while making a transaction in a global trading hub such as Dubai. Make sure to research in detail and hire the agent that suits your requirements.
An agent who has experience conducting similar transactions as yours must be considered for hiring. Moreover, always make sure that the real estate agent you hire is certified. To verify the legality, check their status on the Real Estate Regulatory Agency Credentials.
Do the Due Diligence
No matter what kind of property you are buying and what payment plan you intend to follow, it is always advisable to ask the maximum possible questions to rule out the possibility of doubt.
Before engaging in the transaction, make sure to double-check the reputation of the developer and the real estate agent. Check the build quality and make sure that the developer follows the delivery commitment when a developer is directly involved in the transaction.
However, if you are buying it from a real estate agent, at least look for the their registration with the Dubai Land Department.
Understand the Process of Purchase in Dubai
Two types of properties are available in Dubai: off-plan and ready-to-sell. The ready-to-sell properties are pre-owned and available for resale.
However, the off-plan properties are under-construction properties whose payment plan spans over a couple of years. For buying an off-plan property, a foreign investor has to submit a passport and pay 5% to 15% of the reservation fee.
Always make sure while buying an under-construction property that the completion date is fixed, and the developer is subject to pay compensation if delayed beyond the completion date.
Documents Needed To Buy a Property in Dubai From India
Buying a property in Dubai has become easier. All that you need to do is to submit your passport as proof of your identification. The government would issue you a 6-month property visa, which is known as Property Holders Visa.
It allows the expat buyers to look into the possible options and do the research on their own. The only requisite is that the property must be worth at least One million AED. However, the prior rules of holding a residency permit are no longer a requirement.
Calculate the Fee and Taxes
The process of buying a property in Dubai involves paying several fees. It includes real estate broker’s fees, mortgage fees, and the developer’s fee.
Along with it, other costs include the deposit price, purchase fee, property cost, transfer fee, and the currency exchange difference.
So, calculate the costs and add them to 5% of the total property price. Understanding the finances can be a bit tough, so it is advised to consult a professional real estate lawyer to handle the paperwork.
Know the Mortgage Options
The options to mortgage in Dubai are less, and the process is cumbersome as self-certified mortgages are not allowed in Dubai.
Moreover, the mortgage repayment cannot exceed a total of 35% of your income. It is better to know the possible mortgage options and, for that, seek advice from the local real estate experts.
Understand the Leasehold and Freehold Areas
Dubai offers freehold areas as well as leasehold areas. The expats can buy freehold properties in specific regions such as Emirates Hill, Ras Al Khor, Al Barsha, and Al Gouz.
Whereas the leasehold areas offer full ownership, and the lease period lasts from 10 to 99 years. The areas that offer leasehold properties are Discovery Garden, Deera, and Jumeirah.
Pre-approved Mortgage
It is always a better choice to have a pre-approved mortgage at your disposal. It can greatly help the buyer in the process of making the transaction.
Since the mortgage would handle the funds, it would facilitate the total payment for completing the purchase.
After buying the property, the transfer of the property would be registered in the Land Department Office in Dubai.
Final Words
Investment in the Dubai real estate sector is never a bad option, and when it comes to investors from India, it is probably the best choice.
The benefits that Dubai can offer include a tax-free environment, world-class amenities at lower costs, high rental incomes, and ever-increasing economic growth.
If you are convinced, do not forget to keep in mind the rules described in the guide. However, even if you understand the process, it is always better to seek professional guidance from an experienced, certified real estate agent.
