Non-Resident Indians (NRIs) are increasingly attracted to Dubai’s real estate market, drawn by the allure of tax-free returns and potential yields of up to 10 percent. With no restrictions on property purchases and opportunities for long-term visas, the UAE has become a top destination for NRI investors seeking profitable real estate ventures.
Essential Considerations for NRI Investors
Before entering Dubai’s real estate market, NRIs must become familiar with key regulatory bodies like the Dubai Land Department (DLD) Experts advise careful attention to details such as ensuring an escrow account is set up for off-plan properties, understanding the implications of delivery delays, and knowing the rules for resale. In the secondary market, comprehending the resale process and ownership transfer is vital.
Trending Investment Locations Among NRIs
NRIs are increasingly investing in emerging communities such as Dubai Hills Estate, Dubai Creek Harbour, Business Bay, and Meydan. These areas offer a strategic balance between established infrastructure and growth potential, enabling investors to achieve significant capital appreciation and maximize their returns over time.
Unlimited Property Purchase Opportunities for NRIs
There are no limits on property purchases by NRIs in the UAE. Those who invest more than AED 2 million can qualify for a Golden Visa. The mortgage regulations for NRIs who reside in the UAE are the same as for other residents, offering 80 percent Loan-to-Value (LTV) for first purchases and 60 percent LTV for additional properties.
Tax Implications for Indian Residents
Indian residents considering investing in Dubai’s off-plan properties should be aware of recent changes to the Tax Collected at Source (TCS) regulations, which impact foreign remittances under the Liberalised Remittance Scheme (LRS). These new rules impose a 20 percent tax on amounts exceeding INR 7,00,000 (approximately AED 30,625), affecting the overall investment cost.
Understanding Additional Costs and Fees
NRIs should also consider the various fees associated with purchasing property in Dubai, such as the four percent Dubai Land Department fee and additional costs like the two percent buyer’s commission, conveyance fee, and trustee fee, particularly in the resale market.
The Value of Working with Real Estate Specialists
Experts highly recommend that NRI investors collaborate with Dubai real estate specialists before making any property purchases. These specialists can offer essential insights into market trends, pinpoint upcoming investment opportunities, and help navigate the complex real estate market in Dubai.
High-Demand Areas for Rental Income
For NRIs interested in off-plan properties, it is advisable to focus on projects in high-demand areas for both short-term and long-term rentals. This approach ensures that investors acquire a versatile property at handover, offering high returns and appreciation. Given the dynamic nature of Dubai’s property market, working with a knowledgeable advisor is crucial to making informed investment decisions.
Reference: Arabian Business
