Owning a flat in Dubai has been a dream for many Indians. The reason for this is the high living standard, cultural diversity, and rebate on the tax. In a bid to ensure that non-Emiratis can also buy property, the government has created a freehold property category. However, the buying process is a bit complex and one has to go through a strenuous legal process.
You can begin by exploring the local real estate market, hiring a professional age, and understanding the laws to buy a flat in Dubai. In this article, we shall know about the tips to buy a flat in Dubai and also read about the top five locations to buy a property.
Tips to Buy Flat in Dubai from India
Here are some go-to tips to buy a flat in Dubai from India:
Before making the investment decision, decide the reason for which you want the property. There are two kinds of property mainly, commercial and residential. If you want to use the property for rental purposes then you should go for those areas that have high rental yields. Whereas, if you want a property for residential purposes then go for units that are located in a good locality.
Foreign buyers prefer flats in apartments, villas, or townhouses that are equipped with modern amenities and facilities. Also, before investment, ensure that the locality or society you choose to invest in is open to non-Emiratis. The government has released a list of all those areas that are for Indian nationals. However, based on our research, Emaar Towers, Jumeirah Gardens, International City, and Al Hamra Village are some popular localities for Indians.
Consult with multiple real estate agencies to get an idea of the quote. The real estate market of Dubai is very competitive. Hence, indulge in research and go through several real estate agents to identify different kinds of properties. Ensure that the agency you have chosen is well-versed in all the legal complexity and has years of experience.
Do not hesitate to ask questions when navigating a property. Ask questions regarding the developer, amenities, investment plan, etc to ensure there is no miscommunication. Do your own research as well if the plot you are choosing is under construction to skip any fraud. If you wish to work with a real estate agent then ensure that the agent has year-long experience in the industry.
You can purchase a property in Dubai via a real estate agent or broker. These professionals are well-versed in the industry and know about the local market more than anyone. Hence, it is crucial to work with a reliable broker as he will handle all your documents and legal complication.
Handling these to the wrong person can lead to complications in the deal. Additionally, in Dubai, brokers deposit cheques amounting to 10% of the property value. Hence, it becomes very important to go for a reliable person.
Properties in Dubai can be purchased as an off-plan from a developer or resale from a private seller. For buying an off-plan property, the ex-pats have to submit their passports.
Next, a SPA committee is drafted with a reservation fee ranging between 5 to 15%. However, for the property which is under construction in that case, the compensation has to be paid within the stipulated time period. Also, if you are buying a property from a private seller than an MOU has to be signed with all the terms and conditions.
The first prerequisite to buying a property in Dubai is to have all the necessary documents that prove their identity. The first document is a valid passport that has to be presented before the authorities.
Next, you have to get valid permission from the Dubai government to stay in the country. This is a six-month visa called Property Holder Visa that is offered to investors to enable them to stay in Dubai to explore investment opportunities.
Visit Dubai before commencing the investment process. If you are buying a new property then try to gather information about the locality and other amenities. However, if you are investing in a resale one then try to visit the site physically to ensure it is in a good condition. Similarly, visit the under-construction site of the building and ensure that the quality of work done is good.
If you are willing to purchase a property from a private seller then survey the list with the registered and professional companies. You can survey the property physically to ensure that its upkeep is done well. You can visit the property and ensure that the same is in a good condition. This is because if the building is damaged then you have to pay for the repairs.
Utilizing traditional research methods can be resorted to when buying property in Dubai. The area is very large and thus thorough research has to be done to get the correct insight. You can seek the advice of agents, real estate firms, or locals to know about the pros and cons of an area.
In Dubai finding a professional real estate who is honest and gives you correct guidance is important. These brokers are well-versed in the area and provide correct insight into the ROI and capital appreciation. Hence go for brokers who offer expert advice and conduct thorough research on your behalf for a better deal.
Before moving into any area of Dubai try to ascertain the unique features and amenities that are available there. If you want to move to a luxury residency then go for communities like Arabian Ranches, The Greens, or The Lakes. Whereas, smaller budget properties are available at Emirates Hills. The crux of this is to go through the area before hand to ensure your investment goal is fulfilled.
An Investment in Dubai is a mid-term investment for resident areas. This means that you have to pay for all the expenses like broker’s commission, government fees, or registration rights. Also, if you wish to sell the property then you have to wait for some time as the property is not a very liquid asset and needs time for selling off.
When buying a property with a mortgage in Dubai, sign the opt out clause that comes with the sale agreement and the MoU. This clause protects the buyer's interest and also from losing the valuation if the bank evaluates the property on a lower side. Essentially, the opt-out clause indemnifies the purchaser against such losses.
Obtaining a mortgage in Dubai is very challenging for those who are not residents of Dubai. The government has prescribed complex paperwork that has to be completed. While filing for a mortgage you have to ensure that your monthly expense is not overriding your monthly income by more than 35% of the total income. Before opting for the mortgage ensure that you go for professional advice only.
Dubai is divided into two categories, freehold and leasehold areas. This has been done for foreigners who wish to invest in the country. One can easily get freehold properties in localities namely, Um Hurair, Al Barsha, Emirates Hills, Jebel Ali, Al Gouz, Ras Al Khour, and Nad Al Shiba. However, even after buying you will not get full ownership but can hold the property for only 99 years.
Read about the top five locations to buy or rent property in Dubai in the section below:
Al Furjan
Al Furjan is a vibrant community located in South Dubai between Sheikh Zayed Road and Sheikh Mohammed Bin Zayed Road. The property is developed by Nakheel Properties and is equipped with a range of amenities and facilities. Presently, the property is catering to around 4000+ apartments, villas and hotels. Its high rental yields and affordable sale price makes it popular among Indians.
MBR City
Mohammed Bin Rashid City (MBR City) is a mega-development mixed project which also comes under the freehold property list. The project is the home of the biggest Shopping mall in the world and the world’s largest man-made lagoon. Presently, MBR city offers luxurious apartments and villas with close access to Business Bay and Al Quoz.
Dubai Marina
Dubai Marina is a waterfront project that offers stunning skyscraper buildings. The apartments are the most sought-after neighborhoods in Dubai. It is popular mainly as property values appreciate at a very fast rate. The apartments here boast luxurious amenities. It is a well-planned community connected to the city via state-based roads and highways. One can easily get apartments in an area ranging between 2450 to 9600 sq ft.
Downtown Dubai
Downtown Dubai is a bustling area that offers a mix of properties namely, residential and commercial. The area is home to iconic landmarks such as the Burj Khalifa and the Dubai Mall. This is one of the reasons that attribute to high ROI and rental yields. Strategically located at Sheikh Zayed Road across Al Wasl and bordering Business Bay makes it is perfect to enjoy the neighboring vibrant neighbors.
Sobha Hartland
Spread across an area of 8 million sq ft of land, Sobha Hartland is a gated community offering luxury villas and apartments. Its popularity is majorly due to the luscious green landscape, and serene neighboring. This is one of the waterfront community projects offering views of the creek, canals, and skyline. One can easily get sky-scrapping apartments, and villas in a space area ranging between 1,500 sq. ft. to 4,000 sq. ft. Sobha heartland is closely located to the Nad Al Shiba and Creek Metro.
The Palm Jumeirah
The Palm Jumeirah is a man-made island that is in the shape of a Palm tree. The project is located near the Arabian Sea and the project features a trunk and 16 fronds. Palm Jumeirah is home to a plethora of luxurious apartments, villas, and entertainment units.
Dubai Properties Price in Indian Rupees
Dubai is a popular destination for Indian property investors. This is major because of the high-end properties that are available at a low rental value. Additionally, the properties up for sale offer a high ROI which is profitable for a buyer’s interest. We will take a look at the rental value and sale value of the famous Dubai Properties.
| Property Name | Studio | 1 BHK | 2 BHK | 3 BHK |
| Jumeirah Village Circle | AED 39,000 | AED 56,000 | AED 79,000 | AED 124,000 |
| Bur Dubai | AED 36,000 | AED 55,000 | AED 75,000 | AED 97,000 |
| Al Barsha | AED 43,000 | AED 56,000 | AED 77,000 | AED 106,000 |
| Dubai Sports City | AED 30,000 | AED 43,000 | AED 63,000 | AED 79,000 |
| Al Furjan | AED 35,000 | AED 55,000 | AED 74,000 | AED 118,000 |
| Property Name | Studio | 1 BHK | 2 BHK | 3 BHK |
| Jumeirah Village Circle | AED 454,000 | AED 729,000 | AED 1,119,000 | AED 1,480,000 |
| Bur Dubai | AED 507,000 | AED 741,000 | AED 1,517,000 | AED 2,460,000 |
| Al Barsha | AED 434,000 | AED 864,000 | AED 77,000 | AED 1,174,000 |
| Dubai Sports City | AED 334,000 | AED 486,000 | AED 750,000 | AED 79,000 |
| Al Furjan | AED 411,000 | AED 721,000 | AED 1,118,000 | AED 974,000 |
Yes, Indian nationals are allowed to purchase property in Dubai from the available freehold properties. Additionally, you have to gain permission from the governing board before completing the purchasing process.
The process of buying a flat in Dubai is very complex. The major steps include signing a sale agreement, registering the property with the DLD, and paying all the applicable taxes.
The cost of buying a flat in Dubai depends on factors like the location, type of property, total area, registration fee, brokerage etc.
Yes, even if you are an Indian national, you can opt to buy a property over a mortgage. Many Dubai-based banks offer loans to non-emiratis and have their own set of rules and provisions.
The major risks associated with buying a flat in Dubai are changes in regulation, fluctuation in property values and fraud by unauthentic agents
