Expert Tips & Navigating Dubai Property Market for NRI Investors

Dubai Real Estate: A Simple Guide for NRIs Investing in the Property Market

Numerous NRIs choose the Dubai Real Estate Market for investment because of its Tax-Free Environment & higher Returns. Prime Investment Area Includes JLT & DubaiHillsEstate

Why are NRIs investing in Dubai's Real Estate Market, and what should they know before they do? Experts share their advice.

Jumeirah Lake Towers is Popular Among NRIs

• However, NRIs should be familiar with important government bodies like the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA) before investing, advised Karan Bajaj, Client Manager at Betterhomes.
• In the off-plan market (where properties are still under construction), it's important to check if there’s an escrow account before making a booking, make sure to have a Sale Purchase Agreement (SPA), and understand the potential for delays in delivery. Also, know when you can resell the property (exit clause) and eventually get the pre-title deed (Oqood). In the secondary market (where properties are resold by owners), you need to know how the resale process works, including being present for the transfer at the DLD trustee office unless you have a Power of Attorney (POA).
• Bajaj also noted that NRIs are drawn to popular developing areas like Dubai Hills Estate, Dubai Creek Harbour, Business Bay, and Meydan. These areas are well-connected and offer good potential for future development.
• These areas have a good balance—they are developed enough with good connectivity and infrastructure, but not so developed that prices are too high. This allows investors to see good capital appreciation and earn solid returns over time.
• They often choose well-known developers with a good track record to avoid delays in projects. This also makes it easier to sell the property at a good profit, whether during construction or after it’s completed," Bajaj added.
• Inch & Brick Realty also mentioned that Jumeirah Lake Towers (JLT) is a favorite among NRIs because it’s family-friendly, has many restaurants, is well-located near Sheikh Zayed Road (SZR), and is a DMCC free zone where many NRIs have businesses.

No Limits on Buying Property in Dubai

• There are no limits on property purchases by NRIs in the UAE, and those who invest over AED 2 million can get a Golden Visa.
• However, he mentioned that the mortgage rules for NRIs who are UAE residents are the same as for others, with 80 percent Loan-to-Value (LTV) for the first purchase and 60 percent LTV for additional purchases.
• Karan Bajaj from Betterhomes added that real estate investors, both local and foreign, benefit from favorable laws in the UAE.
• But NRIs thinking about buying off-plan properties in Dubai should also consider the recent changes to Tax Collected at Source (TCS) regulations in India. These new rules affect money sent abroad under the Liberalised Remittance Scheme (LRS).
• These regulations impose a 20 percent tax on amounts over INR 7,00,000 (about AED 30,625). This is important when planning investments, as buyers need to consider their total annual payments according to their payment plans with developers, he explained. Since the UAE Dirham is tied to the US Dollar, NRIs can keep an eye on currency changes by comparing the Indian Rupee with the US Dollar.
• Additionally, NRI investors should be aware of the fees when buying property in Dubai. This includes a four percent fee from the Dubai Land Department and other costs related to the resale market (if buying from a landlord as a resale unit), such as a two percent buyer’s commission, conveyance fee, trustee fee, and more, Bajaj added.

Experts Recommend NRIs Work with Dubai Real Estate Specialists

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