Want to Buy a House in Dubai? Here Are Some Things You Should Know

Two main laws control investment in real estate abroad, including Dubai, if we look for a resident Indian: Income Tax Act, 1961 and Foreign Exchange Management Act, 1999.

Under the Liberalised Remittance Scheme for purchase of immovable property, a resident individual can send upto $ 2,50,000 (approximately ₹2.1 crore) per financial year according per FEMA rules. Since the stated restriction is for an individual, a family wishing to purchase a larger house might send the money in bigger quantities using their combined individual limits.

It should be mentioned, nonetheless, that such remittances are not permitted using borrowing money from banks. Still, family members are free to present money to one another and send it under LRS. All revenue generated from such property is liable in India. This covers rental income or capital gains.

Real estate players claim that buying a property in Dubai is relatively easy. All one needs to get going is a collection of documents including passport, visa, proof of income, current bank statements, no-objection certificate from the developer, purchase agreement, payment details and seller's identity verification.

Freehold homes in specified locations are purchasable by foreigners without a residency visa. There is no requirement for a local sponsor. Although mortgages are available to foreigners, the terms depend on the buyer's residency status and credit history; there is a 4% Dubai Land Department (DLD) registration fee applied.

Abu Dhabi mostly allows foreign ownership through leasehold arrangements in specific areas like Al Reem Island and Saadiyat Island, where properties are leased for up to 99 years, said a CEO of a big company.

Every year the DLD updates freehold areas. Among the localities falling into this bracket are The Palm Jumeirah, Downtown Dubai, Burj Khalifa, Dubai Marina, Emirates Hills, Bartha Heights, Business Bay and Blue Water Island.

Experts from sectors mentioned listed Two of the city's most upscale residential districts are Downtown Dubai and Palm Jumeirah. Professionals and expatriates love Dubai Marina and Jumeirah Beach in the current quarter.

Puri underlined that its contemporary infrastructure and future expansion possibilities are helping newly developed sites like Dubai Hills Estate and Dubai Creek Harbour to acquire popularity.

High-net-worth people especially in places like Palm Jumeirah, Business Bay, and Emirates Hills search for top houses. With costs ranging millions of dollars, these purchasers generally acquire villas or penthouses in exclusive areas. Rizwan Sajan, Founder and Chairman, Danube Group remarked.

Middle-class consumers and investors search for homes in more reasonably priced yet developed regions including Jumeirah Village Circle, JVT, and Dubai Maritime City, Sajan said. High-quality flats and townhouses with decent rental returns and capital appreciation appeal to this group.

Young professionals and expatriates searching for reasonably priced residences or investments make up the first-time buyer category meantime. Popular among these purchasers are Al Furjan, Dubai Silicon Oasis, and Arjan, which provide a mix of price and lifestyle features.

Data obtained from a property consultant indicates that the Jumeirah Golf Estate and Arabian Ranches' average per square foot property price right now falls between ₹41,196 - 45,774. around Dubai Hills, it comes around ₹36,619 - 45,774 per square feet.

Prices per square foot in the better locations of Emirates Hill and Palm Jumeirah range from ₹57,217 - 68,656 and ₹1,02,991 - 1,19,012 respectively. According to a popular company, the average house price in Dubai is roughly $7,60,000 ( ₹63.88 crore). The real estate cost depends on the location, construction stage, living area, finish quality, as well as the facilities of the residential complex.

Another study shows that residential property values in Dubai rose 5.3% quarter-on-quarter in April to June 2024 and 21.3% year-on-year. Over the first half of the year, prime residential values which include the areas of Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, and Jumeirah Islands rose by 7% yearly.

While villas had a 24.3% price increase over a 12-month period at the end of the quarter concluded June 2024, flat prices stood 20.7% higher than Q2 of 2023. Reflecting the rise of under-construction residential developments over the past three months, the overall number of residences available for sale across Dubai's major marketplaces rose by 21.4% during Q1 2024.

Due to be finished by 2029, 261,243 units in all were being built during the first quarter. A company shows 80% of the total to be apartments. The performance of the Indian rupee against the UAE dirham has influenced buying patterns at times. Along with this, rental yields range from 5 to 8%, almost double the average yields in major Indian cities.

Real estate consultant Anarock claims that Bengaluru has the highest rental yield among the top seven cities in India between the January and March quarter of 2024. Over the three-month period Mumbai recorded a rental yield of 4.15% while Gurugram recorded 4.1%.

Among some of the popular things for property buyers, Dubai presents a tax-free environment on personal income and capital gains, which is quite appealing to Indian investors used to higher tax rates.

Moreover, owning city property could qualify one for a Golden Visa. Still, several criteria have to be met. Dharmani underlined: To qualify for the Golden Visa, individuals must invest at least AED 2 million (about ₹5 crore) in real estate or approved investments. Designed for five to ten years, the Golden Visa is a long-term, renewable resident visa that lets foreigners live, work, and study in the UAE while gaining some special advantages. 

This quarter of 2024 is good for buying properties for investment and other uses also. More people are coming to Dubai and several of them are rich people from countries like India. This shows that the demand for the properties will increase and the price of the houses will continue to increase. There are also a good percentage of properties that are being sold at attractive pricing and payment plans.