How Indians can look for their second home in Dubai

Dubai’s real estate market has emerged as one of the most attractive destinations for foreign investors over the past decades. Strong infrastructure, investor-friendly taxation policies, and a stable law and order environment have drawn both local and international buyers. To support this growing demand, the Dubai government allows foreigners, including Indians, to purchase property in the UAE. However, there are specific steps and rules that buyers must follow to complete a property purchase legally and safely.

Foreign nationals, including Indian residents living abroad or within the UAE, can buy, sell, or lease properties in Dubai. These purchases are allowed in designated freehold areas approved by the Dubai Land Department (DLD). Foreigners can also buy commercial properties in Dubai, provided they hold a valid trade license.

It is important to note that while all foreigners can invest, they must follow the legal framework for property purchases to avoid potential complications.

Step-by-step process to buy property

1. Select a freehold area: The first step is choosing the right area to invest in. Freehold zones are spread across Dubai and offer different benefits. Popular areas for investment include Dubai Marina, Jumeirah Lake Towers, and Jumeirah Village Circle, which typically offer higher returns on investment.

2. Decide between off-plan or ready properties: Investors can choose between ready-to-move-in properties or off-plan developments. Ready properties require full payment upfront, while off-plan projects often provide flexible payment plans. Off-plan properties are typically offered by established developers such as Emaar, Nakheel, and Damac.

3. Consult a RERA-Certified real estate agent: Hiring a licensed agent simplifies the process and ensures compliance with local regulations. Agents can guide investors through paperwork, payments, and negotiations, making the process faster and less stressful.

4. Arrange finances: Before proceeding with a property purchase, ensure finances are ready. Non-residents applying for a mortgage should do so at least three months in advance. Payments can be made through UAE bank accounts or Indian NRE/NRO accounts, following RBI and UAE regulations.

5. Obtain a No Objection Certificate (NOC): Buyers must obtain an NOC from the developer to confirm that there are no outstanding dues or legal disputes. This applies to both new and resale properties.

6. Register the property: The final step is registering the property with the Dubai Land Department and obtaining a title deed. Registration fees are generally 4% of the property value. The title deed confirms full legal ownership, giving the buyer the right to sell, rent, or occupy the property.

Types of property ownership

1. Freehold properties: Foreigners have complete ownership rights in designated freehold areas. They can sell, rent, or modify their properties freely. Popular freehold zones include Downtown Dubai, Business Bay, Dubai Marina, Jumeirah Beach Residence, DAMAC Hills, and The Villa.

2. Leasehold properties: Investors can use and benefit from the property for a lease term of up to 99 years. However, leasehold properties come with restrictions on modifications, and owners must adhere to specific rules.

Why invest in Dubai real estate?

• Tax benefits: Properties purchased by foreigners in Dubai are exempt from property taxes, capital gains taxes, and income taxes. This makes Dubai a highly attractive destination for investment.
• Strong market growth: Dubai’s property market has shown steady growth over the past decades. Investors can expect significant returns, particularly in high-demand areas.
• Infrastructure development: Dubai continues to invest heavily in infrastructure projects, including the Dubai Urban Master Plan 2040, which aims to transform the city into a futuristic urban hub.
• UAE Golden Visa opportunities: Foreign property investors may qualify for a UAE property investor visa if they invest AED 2 million or more. This visa, valid from six months to ten years, allows long-term residency and family sponsorship, offering additional incentives for investors.

Tips for Indian buyers:

• Hire a licensed and RERA-certified agent to navigate local laws.
• Consider property management services if renting out the property.
• Understand mortgage eligibility for non-residents and plan finances accordingly.
• Ensure all payments and transfers are transparent and documented.
• Check the developer’s credentials and payment plans, especially for off-plan properties.

Required documents:

• Valid Indian passport
• Emirates ID (if resident)
• Proof of payment
• MoU, NOC, and developer/seller identification

Rising interest from Indian investors, especially from smaller towns
As property prices in major Indian cities like Delhi and Mumbai continue to soar, residents from Tier 2 and Tier 3 cities are increasingly turning to Dubai's real estate market. Developers in Dubai have reported a significant rise in inquiries from these smaller Indian cities, with nearly 70% of buyers in new projects originating from such regions, according to an ET report. This trend is driven by Dubai's competitive pricing and advantageous tax structures, making it an attractive investment destination for Indian investors.

In 2024, Dubai's real estate market set a new benchmark with over 120,000 off-plan and ready residential transactions, totalling more than AED 259 billion. Registered transactions increased by 43% year-on-year, while sales value grew by 34% year-on-year. The average registered transaction sale value in Dubai currently stands at AED 2 million, approximately ₹5 crore, aligning with the price range of properties in major Indian metros.

Dubai's investor-friendly tax structure, free from capital gains tax and income tax, stands in sharp contrast to India's tax regime, which includes capital gains tax and various property-related levies. This tax advantage makes Dubai an increasingly attractive destination for Indian investors, especially when weighed against the tax and regulatory landscape in India's major metros.

Dubai’s real estate market continues to offer lucrative opportunities for Indian investors. With tax-free policies, a secure legal framework, and a rapidly growing property market, foreign buyers can benefit from high returns and long-term investment opportunities. By following the correct steps and consulting licensed professionals, Indians can safely navigate the property market and secure their investment in Dubai’s dynamic real estate landscape.