Dubai has emerged as a global hub for real estate investment, drawing investors from around the world. For Non-Resident Indians (NRIs), Dubai’s property market presents a compelling combination of stability, growth potential, and a robust rental market.
What is drawing Non-Resident Indians (NRIs) to Dubai’s real estate market, and what should they be aware of before investing?
Non-Resident Indians (NRIs) are increasingly turning their attention to the Dubai real estate market, enticed by the prospect of tax-free returns and potential yields reaching up to 10 percent, according to experts.
The UAE’s appeal is further strengthened by the absence of restrictions on property purchases and the availability of long-term visas, making it a prime destination for NRI investors in search of profitable real estate opportunities.
The UAE’s appeal is further strengthened by the absence of restrictions on property purchases and the availability of long-term visas, making it a prime destination for NRI investors in search of profitable real estate opportunities.
Areas gains popularity among NRIs
Dubai offers a wide range of areas that appeal to NRIs for property purchases, each with its unique advantages. Here are some of the most popular options:
- Downtown Dubai:
Liveliness and Luxury: This area is known for its iconic landmarks, including the Burj Khalifa and Dubai Mall, offering a vibrant lifestyle and luxurious amenities.
Strong Rental Demand: Due to its prime location and high demand, properties in Downtown Dubai often command premium rental yields.
Dubai Marina:
Waterfront Lifestyle: This waterfront district boasts stunning views, a marina, and a variety of dining and entertainment options.
Family-Friendly Atmosphere: With its spacious apartments and proximity to schools and parks, Dubai Marina is popular among families.
Jumeirah Lake Towers (JLT):
Affordable Luxury: JLT offers a mix of affordable and luxury properties, making it a great option for investors on different budgets.
Well-Connected: The area is well-connected to other parts of Dubai, making it convenient for residents.Dubai Hills Estate:
Master-Planned Community: This master-planned community offers a family-friendly environment with schools, parks, and recreational facilities.
Growth Potential: Dubai Hills Estate is a rapidly developing area with significant potential for future appreciation.
Business Bay:
Commercial Hub: This area is a thriving commercial district with a growing number of residential properties.
Convenient Location: Business Bay is well-connected to Downtown Dubai and other major areas.Emaar Beachfront:
Seaside Luxury: Emaar Beachfront offers an exclusive island lifestyle with direct access to pristine beaches and breathtaking views of the Arabian Gulf.
Prime Location: Situated between Palm Jumeirah and Dubai Marina, this area is ideal for those seeking a blend of city living and beachside relaxation, with proximity to shopping, dining, and entertainment venues.
Dubai Creek:
Cultural and Modern Fusion: Dubai Creek blends the charm of old Dubai with modern developments, offering a unique living experience that resonates with both traditional and contemporary tastes.
Future Growth: With ongoing projects like Dubai Creek Harbour, the area is poised for significant growth, making it an attractive option for investors looking for long-term capital appreciation.
The Valley:
Affordable Community Living: The Valley is a master-planned community that offers affordable yet stylish homes, catering to families and first-time buyers seeking value without sacrificing quality.
Growing Infrastructure: As part of Dubai’s ongoing expansion, The Valley benefits from upcoming infrastructure and commercial developments, enhancing its appeal as a residential destination.
Emaar South:
Strategic Location: Located near Al Maktoum International Airport and the Expo 2020 site, Emaar South is strategically positioned to benefit from Dubai’s future growth plans.
Golf Course Community: Emaar South features a world-class golf course and offers a range of modern, affordable homes, making it a preferred choice for both investors and end-users seeking a balanced lifestyle.
Infinite Opportunities for Property Purchases in Dubai
There are no restrictions on property purchases by NRIs in the UAE, and those who invest over AED 2 million can qualify for a Golden Visa.
However, the mortgage rules for NRIs who are UAE residents align with those for other nationalities, offering an 80 percent Loan-to-Value (LTV) for first-time purchases and 60 percent LTV for subsequent purchases.
Real estate investors, both local and international, continue to benefit from favorable laws in the UAE. However, Indian residents interested in off-plan property in Dubai should be aware of recent changes to
the Tax Collected at Source (TCS) regulations in India, as these changes impact foreign remittances under the Liberalized Remittance Scheme (LRS).
These regulations impose a 20 percent rate on remittances exceeding INR 7,00,000 (approximately AED 30,625). This should be carefully factored into investment planning, as buyers need to consider the total annual installments according to their payment schedules with developers.
Experts Recommend NRI Investors Consult Dubai Real Estate Specialists Before Purchasing Property
For NRIs looking to invest in UAE property, it’s advisable to consider off-plan projects in areas with strong demand for both short-term and long-term rentals.
NRI investors are frequently unaware of the ever-changing trends in the dynamic UAE property market.
That’s why it’s highly advantageous to partner with a specialist who has their “finger on the pulse” of the market and can offer a thorough understanding—whether it’s pinpointing emerging locations, assessing current market sentiments, or identifying potential investment opportunities.
In conclusion, NRI investors who choose to work with Dubai real estate specialists can make informed decisions, mitigate risks, and maximize their returns in the vibrant Dubai property market.
