In 2002, the Dubai Government introduced a legislation permitting foreign nationals to own freehold properties in specific designated areas. However, it is in the past decade that Indian buyers have increasingly turned their attention to Dubai’s real estate market, fueling a surge in investments that has reached unprecedented levels today.

Real estate agents in the UAE often highlight how middle-class Indians, who historically moved to the UAE to save money for homes back in India, are now showing a strong interest in purchasing properties in Dubai. The availability of home loans with attractive interest rates makes this shift easier. Dubai’s rapidly evolving lifestyle offers a global standard of living, while remaining geographically close to India, making short visits convenient. Furthermore, Dubai’s thriving real estate market presents excellent opportunities for profitable investments.

NRI Focus spoke to Rajeev Khanna, Advisor, Media Strategy and Real Estate Investments, to find out how NRIs invest in a property in the UAE.

Khanna says NRIs have the opportunity to purchase property in the UAE, becoming a significant segment of the country’s property owners. This investment decision hinges on various personal factors, including the duration of stay in the UAE. “For those planning to reside in the UAE for at least three years or more, owning a property proves to be a more sensible choice than renting. The stability of the property market suggests that NRIs can expect a substantial growth in value over time, which benefits them when they decide to sell,” he says.

The process of buying and selling property in Dubai is clear-cut, with all necessary documentation readily available on official government websites. For NRIs considering this significant move, understanding the legalities is crucial. Furthermore, the financial aspects of purchasing a property, such as mortgage rules and down payments are quite standard. “First-time buyers, for instance, are required to make a minimum down payment of 20%. Additionally, the UAE does not impose an annual property tax, nor are there restrictions on the number of properties one can purchase. A property valued at AED 2.0 million or more qualifies the buyer for a golden visa, enhancing the investment’s appeal,” adds Khanna.

One of the primary benefits for NRIs owning property in the UAE is the elimination of rental fluctuation worries. “In recent years, sharp rent increases have disrupted family budgets, forcing some to make difficult decisions, such as sending family members back to their home countries,” says Khanna.

However, on the flip side, Khanna points out that owning property offers NRIs a long-term residence visa for themselves and their families, providing a sense of security and the possibility of making the UAE a permanent home. This stability is invaluable, given the unpredictable rent increases due to high demand for housing from a growing population.

The choice of property investment for NRIs typically leans towards residential segments, though some also venture into commercial properties either for rental income or future sales profits. “The price of property in Dubai varies by location, similar to global real estate trends. There is no fixed average price, making research and knowledge of the market crucial for prospective buyers. The diversity in investment options reflects the varied interests and strategies of NRI investors in the UAE property market,” says Khanna.

When investing in a property, Khanna asserts that NRIs must carefully evaluate several factors, notably the location, which is pivotal for ensuring future growth and value appreciation. “The reputation and reliability of the developer are equally important, as there have been instances where NRIs have faced setbacks due to unscrupulous developers,” he says.

Consulting with experienced and reputable agents can mitigate risks and guide investors towards making informed decisions. The UAE’s robust infrastructure, economic growth prospects, particularly with the ‘D33’ project aimed at doubling Dubai’s population by 2033, makes it an attractive destination for investors and families alike.

“Currently, the market is favorable for sellers, with demand expected to remain strong for the next few years. This trend underscores the importance of timely investment decisions by NRIs, who have already demonstrated a willingness to take significant risks by living and working abroad. By investing wisely in the UAE’s property market, they can secure a stable and prosperous future for themselves and their families,” says Khanna.

The benefits are manifold for NRIs contemplating property investment in the UAE. From securing a stable residence and avoiding rental hikes to achieving substantial value growth, the advantages underscore the importance of making well-informed decisions. With the right approach, NRIs can leverage the UAE’s dynamic property market to their benefit, ensuring a secure and rewarding investment, signs off Khanna. – editor@nrifocus.com