Buying Property in Dubai for Indians: Step-by-Step Guide

Why Dubai is a Popular Choice for Indian Property Buyers

There are diverse reasons why Dubai continues to emerge as a popular choice for Indian investors and homebuyers. These include

Tax Benefits

Dubai’s tax-free regime is one of the biggest draws. Unlike India, there is no income tax or capital gains tax on real estate, allowing investors to retain more of their rental income or resale gains.

High Yields

Dubai offers attractive rental yields, averaging 5%- 8%, depending on property type and location. Thanks to sustained demand and strategic urban development, property capital appreciation can also exceed 10% per year.

Resilient Economy

Dubai's diversified economy, thriving tourism and commercial sectors, and investor-friendly regulations make it a stable environment for long-term investments.

Ease of Ownership for Indians

There are no restrictions on Indian nationals buying freehold property in designated zones in Dubai. Buyers can fully own, lease, or resell their property.

Property Costs and Expected Returns: Dubai vs. Mumbai

For Indian investors evaluating international real estate opportunities, Dubai presents a compelling case when compared to major Indian cities like Mumbai.

Price per Square Meter (City Centre Apartments):

Source: Numbeo, May 2025

While Dubai's city centre property prices are slightly higher than Mumbai's, the difference is marginal. However, the potential returns in Dubai can be more attractive.

Rental Yields

Dubai offers robust rental yields, averaging between 5% and 8%, depending on the property's location and type. In contrast, Mumbai's rental yields typically range from 2% to 3%, making Dubai a more lucrative option for investors seeking regular income.

Capital Appreciation

In 2024, Dubai's property market witnessed a significant surge, with residential prices increasing by approximately 16.5%. This growth was driven by sustained demand and limited new supply . Mumbai's property market also experienced growth, but at a comparatively moderate pace.

Investment Takeaway

For Indian investors, Dubai not only offers competitive property prices but also higher rental yields and stronger capital appreciation potential. Additionally, benefits like tax-free rental income and investor-friendly policies enhance Dubai's appeal as a prime destination for real estate investment.

Steps to Buy Property in Dubai from India

Step 1: Research & Due Diligence

Understand your goals, budget, and ideal location. Study price trends, rental returns, and visa implications to make informed decisions.

Step 2: Appoint a RERA-Accredited Real Estate Agent

Working with an experienced agent in Dubai ensures legal compliance and access to exclusive listings.

Step 3: Explore Mortgage Options (if required)

Non-resident Indian buyers can get mortgage financing from local banks in Dubai for up to 60% of the property value.

Step 4: Agree Terms and Sign a Sales Agreement

Once you choose a property, both parties agree on price and terms, and sign a Memorandum of Understanding (MoU). A 10% deposit is typically required.

Step 5: Obtain NOC and Finalise Transfer

A No Objection Certificate (NOC) is requested from the developer. Once obtained, the transaction is registered at the Dubai Land Department (DLD) and the title deed is issued.

Documents Required for Indian Buyers

• Valid passport

• UAE residence visa (if applicable)

• Emirates ID (if resident)

• PAN card (recommended)

• Proof of income or salary certificate

• Bank statements

• Signed MoU

• Title deed (if resale)

• NOC from developer

• Mortgage documents (if applicable)

• Power of Attorney (if appointing a representative)

Costs Involved When Buying Property in Dubai

There are certain costs of buying a property in Dubai. These include:

Financing Options for Indian Nationals

Whether you're purchasing a ready property or an off-plan project, there are three primary ways Indian buyers can finance their real estate investment in Dubai:

Mortgage (Ready Property)

Indian nationals without UAE residency can typically finance up to 60% of the property value through a local mortgage. Mortgage types available include:

• Fixed-rate mortgage

• Non-resident mortgage

• Variable-rate mortgage

• Offset mortgage

• Remortgage

• Investment mortgage

Interest rates generally range between 4% and 5%. Comparing lenders and consulting a mortgage broker is highly recommended.

Payment Plan (Off-Plan)

For off-plan properties, developers often offer structured payment plans tied to construction milestones. These plans typically start with a 10%–20% down payment followed by flexible installment schedules during construction and upon handover.

Cash

Buyers can also opt to pay the full amount in cash, which can simplify the process and give leverage during negotiations. Ensure proper documentation for currency transfers under India's Liberalised Remittance Scheme (LRS).

Best Areas in Dubai for Indian Property Buyers

Dubai Marina

Ideal for waterfront living and lifestyle-driven buyers. Offers apartments with sea views, retail outlets, connectivity, and nightlife.

Arabian Ranches

Perfect for families seeking villas in a suburban gated community. Features include international schools, golf courses, and community parks.

Jumeirah Lake Towers (JLT)

Affordable properties in a central location. Offers a mix of commercial and residential options, lakeside promenades, and urban convenience.

Dubai Silicon Oasis

Increasingly popular with Indian tech professionals and families. Offers affordable housing, educational institutions, and business facilities.

Discovery Gardens

Known for its affordability and green surroundings. A great entry point for first-time investors.

Repatriation of Funds for Indian Buyers

Rental income and sale proceeds from Dubai property can be repatriated to India under the Liberalised Remittance Scheme (LRS), provided proper documentation is maintained. Indian buyers are advised to:

• Keep ownership and income records

• Follow RBI remittance limits

• Consult with a CA for compliance

Long-Term Visa Options for Indian Investors

• AED 750,000+ (approx ₹;17.3M) investment: eligible for 2-year renewable Property Investor Visa

• AED 2 million+ (approx ₹;46.1M) investment: eligible for 10-year Golden Visa

These visas offer long-term residency without needing employer sponsorship and are particularly popular with HNIs and Indian entrepreneurs.

Currency and Tax Planning Tips for Indian Buyers

While Dubai has no property taxes, Indian buyers should be aware of:

• Potential exposure to Indian wealth tax (IFI)

• Currency fluctuation risks between INR and AED

• Need for clear financial planning

Using forward contracts or consulting a currency broker can help mitigate exchange rate risks during large transfers.

Mistakes to Avoid When Buying Dubai Property from Abroad

• Not researching the developer or project

• Ignoring service charges or hidden costs

• Making emotional decisions rather than ROI-driven ones

• Underestimating exchange rate impact

• Not consulting a legal or property advisor

Tips for Long-Distance Property Management

• Hire a professional property management firm

• Opt for furnished units for better rental appeal

• Use platforms that offer remote dashboards for monitoring

Conclusion: Why Now Is the Right Time for Indian Buyers to Invest in Dubai

Dubai presents one of the most compelling real estate investment opportunities for Indian nationals in 2025. With tax-free benefits, strong returns, residency pathways, and a streamlined ownership process, Indian investors are well-positioned to benefit from Dubai's continued growth.

Whether you're looking to buy a holiday home, secure rental income, or diversify your portfolio globally, now is an excellent time to explore opportunities in Dubai.

Engel & Völkers is here to support you at every step, from property selection and financing to legal documentation and move-in.