The Emirate of Dubai is one of the seven emirates of the United Arab Emirates. It is the most populous emirate of the UAE. The capital of the emirate is the eponymous city, Dubai.
Dubai has been on investors’ radars for over a decade, courtesy of favourable investment policies. Although the market took a beating during the pandemic, there have been visible green shoots of recovery during the first half of 2022. But, how is its promising real estate advantageous to Indians, and should you invest in a property in Dubai? Dubai-Prime delves into critical details.
Constituting one of the seven emirates of the United Arab Emirates (UAE), Dubai is the epitome of luxury and grandeur. However, much like other markets, Dubai had also been reeling under the pressure of the global pandemic. Reports suggest that property prices in the city had dipped by over 35 per cent during the period. Nevertheless, 2022 witnessed a sharp turnaround with an over 50 per cent increase in sales compared to the previous year. Thus, it is safe to understand that realty activities have picked up in the city. However, does an upward tick in Dubai’s market impact Indians? Can Indians invest in a property in Dubai and make the most of it? Let’s find out!
Benefits of investing in Dubai
High Rental Yield
Dubai is a global market that attracts individuals from all parts of the world for work, study and leisure. This translates into a high amount of rental activity in the market. As per historical data, Dubai assures lucrative Returns on Investment (ROI). On average, the annual rental yield, the method of gauging the ROI, is upwards of five percent in Dubai. At the same time, areas like Dubai Marina, Downtown Dubai, and Jumeirah Village Circle (JVC) manage to rake in over 6-8 percent rental yield.
UAE is known for its investor-friendly practices. An investment in Dubai attracts no annual property tax, income tax, capital gains tax, rental revenue tax, or Value Added Tax (VAT). This allows an investor to dedicate a much larger financial portfolio to purchasing property and, in turn, get higher returns. On average, an Indian can buy a luxury property in Dubai for Rs 2-6 crore. Interestingly, although investment in Dubai is devoid of direct taxes, you might be required to pay municipality fees and private community charges.
Golden Visa relaxations
The UAE administration has recently announced two significant relaxations to its coveted Golden Visa. The Golden Visa is essentially a long-term residential permit that allows foreign nationals to invest, work, study, reside and own business in the emirates. As per new norms, the minimum investment to avail Golden Visa has been brought down to AED 2 million, as opposed to AED 5 million previously. Also, the visa will now be extended from five years to 10 years.