Step-by-Step Guide for Buying Property in Dubai from India

Real estate investments are all about making long-term, lucrative decisions. In more cases than not, this is a permanent investment and often the result of someone's hard-earned life-long money. So, you need to be smart and aware of all the variables that go into making that choice. Speaking of making smart decisions, one can’t go wrong with the real estate market of Dubai.

Deemed as a formidable and stable market for buying properties, Dubai often ranks quite high in the list of places that foreign citizens aspire to buy a property in. And among Dubai’s top foreign investors investing in the city’s real estate market are Indians. The profitability of the real estate sector of the city has been grabbing the attention of Indians for decades now, and they are always scouting the market for the most feasible area in the city to invest in.

If you are one of them, then this guide is for you. We are going to assist you in understanding the real estate market of Dubai and run you through all the major steps you need to know to invest in the same. Our goal is to ensure that your investment is a secure and successful one, and this comprehensive guide is going to make sure you do that.

The Promising Real Estate Market of Dubai 

Before we get into the nitty-gritty of how to invest in the real estate market of Dubai from India, let us acquaint you with what type of market you are dealing with, especially for those uninitiated. Very few cities in the world have gone through such rapid development in a span of just a few decades as Dubai. Even before the 1960s, the city was seen by most as a fishing village with decent chances for trade and commerce.

However, the discovery of oil reserves in the city in the 1960s proved to be a game-changer and put Dubai at the centre of a cultural and economic diaspora. With the scarcity of natural sources of energy around the world and Dubai having an abundance of it, its potential was realised by the world, and it became the hub of businesses and corporations. Soon enough, the upscale development of the city by the government took place, transforming it into a futuristic city of unparalleled proportions. 

Needless to say, this prompted more and more people to shift to this megacity, leading to a tremendous demand in the real estate sector. The beautification of the city and outstanding employment opportunities allowed the city to become a safe haven for those who want to change their life for the better. 

With high rental yields, a strategic location, advanced infrastructure, a stable economy, and a quality standard of life, the real estate market of Dubai checks all the boxes for making a profitable investment. Not to forget, the heavy focus on sustainability in property design makes them extremely relevant for the future. Additionally, the rewarding visa options in Dubai make it easier for Indians to get residency permits in the city. 

How to Invest in Dubai Real Estate from India? 

The real estate market of Dubai offers a viable ground for turning investment opportunities into profitable endeavours. As such, foreign investors from some of the biggest nations in the world, such as the UK, Canada, Nigeria, and Russia, are always on the lookout for residential and commercial properties in the city. 

Indian investors have taken a keen interest in investing in varied industries of Dubai, and real estate is a prominent one among them. But, if you are investing in Dubai’s real estate sector for the first time, you need to comprehend the market and its adjacent rules and procedures to avoid the mistakes first-time buyers make. 

As this type of investment involves a huge sum of money, you need to ensure that you are within the legal parameters of the city so that you can maximise the success rate of your investment. Therefore, we have come up with a linear list of actions that you should try and follow to unlock the potential of the real estate market of the city.

Define Your Goals 

The first order of business is for you to have complete clarity about your own buying intentions. You need to have clear answers in your head as to why you want to delve into the real estate market of Dubai, as this will serve as the foundational brick for all your future decisions in the buying process. Define your goals and set out your motives as well as your buying abilities. 

Various factors come into play in finding the goals of your purchase. This includes answering whether you are buying a property to live in or get rental income from, and whether you want to get into a ready-to-move-in property due to immediacy or an off-plan property when you have time in hand, among others. With your intentions well-defined, the upcoming road becomes smoother since you will be able to objectively dictate your decisions based on what will suit your purpose the best. 

Research the Real Estate Market 

When you are dealing with the real estate market of a foreign city, you are in a different ballgame altogether, and you must have precise knowledge of its functioning so that you can save yourself from financial fallouts and legal troubles. 

It doesn’t matter how experienced you are in the real estate market of multiple Indian cities. Believe it or not, you will be surprised by the number of anomalies in the real estate sector of Dubai. There is a reason why it is globally favoured by so many foreign investors. 

The real estate market of the city is a highly extensive one, as it caters to a global audience of epic proportions. You need to thoroughly research the market, go through analysis, and understand the nuances and intricacies of the properties in the city and find out why Indians buy properties in Dubai. This will provide you with critical insights for making the best judgment call, which, in turn, will help in securing your investment further. 

Talk to Real Estate Professionals 

You have done your research and defined your goals, and you are all set to enter the real estate sector of Dubai. But even at this point, you need to take all the possible help you can get. And what better way to seek help than from someone who is well-versed in the city’s dynamics – a real estate professional. 

Engaging with a licensed real estate agent will significantly improve your chances of procuring a lucrative deal. These professionals will aid you in navigating property viewings, addressing listings, negotiating prices, and terms and conditions with the seller. 

They are also highly trained and experienced in handling legal matters and will ensure you stay on the right track with the law throughout your buying process. Their opinions will help you in making a well-informed and smart decision. But make sure not to forget to check the credentials of the real estate agent or agency you are hiring. 

Decide the Area and Property 

The next line of business you need to address is deciding the area you want to invest in and the type of property you are looking for. Dubai has some of the most profitable areas to invest in all of the Middle East. 

From Downtown Dubai to Business Bay, from Dubai Marina to International City, from Palm Jumeirah to Jumeirah Village Circle (JVC), each neighbourhood in the city has its own set of advantages. Gorgeous landscapes, proximity to workspaces, transportation facilities, and access to major hubs of the city are some of the many criteria you need to look for in this regard.

As for the type of property, this should align with your buying goals. The opulence of the city is defined by luxurious residential and commercial properties by some of the top developers in the world. Sumptuous villas, splendid townhouses, magnificent penthouses, cozy apartments, as well as grand commercial properties, are prevalent all across the city for you to invest in. You can choose one that best suits your preferences.

Fulfil Regulatory Requirements 

To safeguard your investment and to make the buying process smooth and hassle-free, you need to fulfil the regulatory requirements without any compromise. These essentially refer to the guidelines and rules to be followed, and foreign exchange regulations, along with the documents required, that will help you comply with the local laws and regulations of the city. 

You need to keep original and copies of your passport, Emirates ID, No Objection Certificate (NOC), proof of income, bank statements, and other allied identity proofs handy so that you can present them at a moment’s notice. 

In recent years, procuring properties in Dubai by foreigners has become significantly easier thanks to the initiatives taken by the Government of the UAE as part of fostering better relationships with foreign nations. With the availability of residency visas through property investment, foreigners now have more incentives than ever before to explore the real estate community of Dubai and the UAE, at large.

Finding Mortgage Options 

It is not always feasible for everyone to purchase the property of their dream in Dubai with a complete down payment. As such, a wide range of mortgage options for non-residents is available across various banks in the city. 

Once you select the property of your choice from a reputed real estate developer or seller, you need to approach a bank and provide them with the required documents to prove your income stability, along with the home loan down payment.

Please note that the amount of the mortgage you get will depend on the bank you are opting to get the mortgage from, as well as your current financial status. Look for a bank that offers a lucrative interest rate to non-residents, especially Indians, since it will save a huge money. You need to have a clear idea about the Loan-to-Value (LTV) ratio before you settle for a mortgage option, as it will notify you of the amount of down payment that needs to be made (depending on the price of the property) for you to qualify for the mortgage. 

Completing Due Diligence 

We can’t stress enough the fact as to how important it is to perform due diligence, especially when you are purchasing off-plan properties in Dubai. You need to verify the reputation of the developer as well as the real estate agency you are hiring. 

Remember, no amount of questions is more. So, don’t be shy about inquiring about the built quality, payment options, and delivery commitment, among others. You need to make sure that the real estate agent you are taking help from is registered with the Dubai Land Department (DLD). 

Cross-checking the legal status of the property and title deed, along with adhering to the building regulations and looking for any potential encumbrances, will help you make a safe investment. Furthermore, don’t forget to get legal assistance from a law firm that is well-versed in the real estate transactions of the city to ensure your investment is secure.

Finalising the Sale and Purchase Agreement (SPA) 

After completing the due diligence, you need to outline the terms and conditions of the Sales and Purchase Agreement (SPA) with the seller. This typically includes the purchase price of the concerned property, the completion date in case of off-plan properties, the payment schedule, and other allied contingencies. 

This document serves as the single most important piece of evidence that both parties are aware of their obligations and rights. The risks of disputes exponentially reduce with this document by your side. 

After drafting the agreement, if there are any discrepancies, then you need to inform your real estate agent, consult with your lawyer, and speak with the seller. Make necessary changes and finalise the agreement. Typically, you need to pay around 10-20% of the purchase price as an initial deposit once the SPA is signed by both parties. 

Registration and Ownership Transfer 

The final step in the buying process of a property in Dubai by Indians involves the registration and transfer of ownership from one entity to another. After the initial payment has been made, you need to register the property under your name and transfer the ownership to you at the office of the DLD. This process also requires paying a registration and transfer fee. 

You need to submit all the relevant documents, including a letter of transfer, NOC, copies of passports, current title deed, and SPA, along with other allied identification proofs. Once the documents are verified and the fees are paid, you will be provided with the new title deed under your name. 

To Conclude 

Dubai is a global phenomenon, and its real estate market has time and again proved its worth in providing lucrative deals to foreign citizens, including Indians. If you want to tap into the global real estate sector, very few cities in the world match the calibre of Dubai, not only in terms of relevance but also in how accessible it is, thanks to the various government initiatives.

As long as you follow the linear steps and maintain the legalities, the options for viable real estate investments in Dubai are endless. But make sure to do your due diligence and only opt for registered and reliable real estate agents, law firms, and developers/sellers while finalising your choice, since this is a life-long investment you are dealing with. 

The combination of the advice of trusted professionals and careful planning will help you make an informed decision and make your investments secure and lucrative.

FAQs 

Can an Indian buy property in Dubai? 

Yes, Indians can buy properties in Dubai in designated freehold areas of the city.

Is it safe to invest in Dubai’s real estate? 

Yes, it is safe to invest in the real estate market of Dubai as the city offers various tax-friendly policies, high rental yields, and a stable economy.

Is buying property in Dubai a good investment? 

Yes, buying a property in Dubai is a good investment, irrespective of whether you plan to live in the property or use it as a rental income. The high quality of life in the city, thanks to the educational and medical advances, makes it a perfect place for families to settle in. 

When used as a rental income, it generates huge profits for the owners since the city has some of the highest rental yields in the world, owing to the huge settlement of people in the city from around the world. 

Is Dubai a good place to live for Indians?

Yes, Dubai is a good place to live for Indians, not only because of the advanced education, healthcare, and infrastructure, but also because it provides them with the chance to earn tax-free salaries. Additionally, the low crime rate in Dubai and the quality of life add to the countless pros of living in the city. 

How to settle in Dubai from India? 

To settle in Dubai from India, you need to apply for a residency visa. There are various types of visas available in Dubai that you can apply for. Golden Visa, Green Visa, Blue Visa, and student visa are among the most popular options that you can go for. 

What is the price of flats in Dubai in Indian rupees? 

The price of flats in Dubai can be extremely subjective, depending on the type of unit and the location of the apartment. But Dubai is mostly on the more expensive side. Therefore, you can expect a fully furnished 2-bedroom flat in Dubai to cost you around Rs. 1.5-5.5 crore. 

Can I buy property in Dubai without visiting the city? 

Yes, you can buy a property in Dubai without visiting the city with the help of online platforms and the support of a reputable real estate agency. However, we recommend you try and visit the property in person at least once before buying. 

Can I rent out my property in Dubai as a non-resident? 

Yes, you can rent out your property in Dubai as a non-resident. Rental income is tax-free in Dubai, but you might have to register your lease agreement with the DLD.

Can Indians buy property in Dubai on a loan? 

Yes, Indians can buy property in Dubai on loan, as various flexible mortgage options are provided by several banks in the city. As long as you make a minimal down payment and fulfil the requirements, you will be eligible for a mortgage.