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Can Indians Buy Property in Dubai?

Can Indians Buy Property in Dubai?

Invest In Dubai Real Estate From India

As per the Foreign Exchange Management Act (FEMA) of 1999, all Indians whether or not they are residents of the UAE can buy property in Dubai. In fact, Indians are the biggest foreign investors in Dubai’s real estate followed by the UK and Pakistan. Another factor that has sparked the interest of Indian real estate investors is the announcement of the Golden visa. This visa essentially allows you to stay in the UAE for 10 years if you are buying property in UAE worth 2 million AED or more.

Reasons Why Indians Should Buy Property in Dubai:

Can Indians Buy Property in Dubai, UAE

  • Stabilized Economy of Dubai:

The economic and political fluctuations in India and the lack of incentives for real estate investors have made Indians consider the foreign property market. On the other hand, Dubai’s economy is booming and is increasingly attracting tourists and investors with its dynamic growth. This has resulted in population growth which means a higher demand and occupancy rate for real estate properties.

  • High ROI:

The property prices in India are quite high which means lower capital appreciation in the future. Dubai’s property market offers a high rental yield per year and substantial capital appreciation over the years. The annual ROI of Dubai’s property market is higher than a number of various other major metropolitans of the world.

  • Tax-free Returns:

The annual ROIs are between 6 to 10% and the rental income is tax-free in Dubai. Moreover, capital appreciation is less likely to be affected because of currency fluctuations since Dirham is far more stable than Indian Rupee.

  • Hassle-free Investment:

Most residential and commercial properties in Dubai come with fixtures, fittings, and sometimes even furnishings. Virtually every property owner is allotted a parking space free of charge while in India; you have to pay separately for the parking space. If you are looking for a home for yourself the amenities and facilities that come with the property like a swimming pool, gym, and play area provide a complete lifestyle. The real estate market of Dubai is highly regulated and the interests of investors are protected by the government at all costs.

How can Indians Buy Property in Dubai | Some Tips:

  • If your intended reason for buying a property in Dubai as an Indian is to invest, you should be looking at neighborhoods with the highest rental yields. Also, consider buying studios, and one or two-bedroom apartments since these property types are easier to resale than villas and townhouses.
  • Research the best real estate or broker agencies. You should be working with a company that is the most experienced and has the most properties in its hands. Also, compare the broker fee of various real estate agencies before going with one.
  • Getting a mortgage in Dubai as a non-resident Indian can be difficult and the mortgage regulations keep changing with time. Consult with local brokers and real estate agents to remain up-to-date with such changes. As a general rule of thumb, your mortgage repayment shouldn’t be more than 35% of your monthly income.
  • Make sure you have a clear idea of the overhead charges and fees that you will have to pay apart from the principal price of the property. These charges are agent fee, mortgage fee, DLD fee, transfer fee, developer’s fee, etc. Add all these charges to the price of the property. If your budget allows, hire a real estate lawyer to go over the documentation and contracts so as to avoid any loopholes and protect your interests. This is discretionary and not at all a requirement by law.
  • You do not need to have a residency permit to be able to buy property in Dubai. The government of Dubai offers a special visa called ‘the property holders’ visa’ to Indians interested in buying property in Dubai.
  • Ask whatever questions you have in mind especially if you are investing in an off-plan property. Research thoroughly about the developer and the real estate agent that you are hiring. Make sure you confirm the registration of the broker with the Dubai Land Department.

Things to Know Before Buying Property in Dubai as an Indian:

Dubai is a haven for foreign real estate investors. There are so many reasons why investing in Dubai’s real estate is better than investing in Indian real estate. But the rules surrounding real estate property purchases by UAE nationals and Indians are slightly different. Following are some things that you need to consider before purchasing property in Dubai as an Indian:

  • Understanding Freehold Ownership:

As an Indian, there are some areas where you can buy real estate property. Those areas are called freehold areas. Some of the famous freehold areas with high rental yields are Dubai Hills Estate, Dubai Marina, and Palm Jumeirah. Dubai International City and Dubai Silicon Oasis are also under the radar of foreign investors with modest budgets. It is pertinent that you fully understand where you can put your money and invest in the best property from your available options.

  • Getting Pre-approval:

Before buying a property, all Indian real estate investors have to get pre-approval from Dubai Land Department. In order to get pre-approval, you will need to submit various documents like your passport, ID card, proof of income, financial statements, etc.

  • Full Disclosure to the Indian Government:

As per the Foreign Assets (FA) Schedule and the Black Money (Undisclosed Foreign Income and Assets) Imposition of Tax Act (Black Money Act), all Indian real estate investors have to disclose their property purchases in Dubai to the Indian government. This is something to be known beforehand if you are buying property in Dubai as an Indian.

  • Understanding Financing Options and Mortgage:

Indians can apply for loans and mortgages from banks in Dubai. However, the maximum loan-to-value (LTV) ratio that the banks offer in Dubai is different for commercial and residential properties. For commercial properties, the LTV ratio is lower than for residential properties.

  • Understanding the buying process of Off-Plan and Ready Properties:

There are some key differences when it comes to the buying process of off-plan and resale (ready) properties. In an off-plan property purchase, you will be submitting your passport and reservation structure which outlines the details of both the parties, payment plan, and basic terms and conditions of the purchase. There is also a reservation deposit that needs to be paid.

With the purchase of a resale property, a Memorandum of Understanding (MoU) is signed by both parties. After that, a non-refundable payment of 10% of the property price is made to the seller and the real estate agent’s fee is settled (which is 3-5% of the property price). The purchase is complete by making the full payment of the property to the property seller.


The real estate market makes up about one-third of the UAE’s economy. The Dubai Real Estate Regulatory Agency (RERA) and Dubai Land Department (DLD) are continuously devising new ways to make the property buying process simple for real estate investors. Make sure that you have all the information on hand before you purchase a property in Dubai. Investing in the right property at the right time can provide attractive profits on your investment which you can reap for years to come.

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