Non-Resident Indians (NRIs) are increasingly turning their attention to Dubai’s real estate market, attracted by the promise of tax-free returns and potential yields of up to 10 percent, according to experts.

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With no restrictions on property purchases and opportunities for long-term visas, the UAE continues to appeal to NRI investors seeking lucrative real estate opportunities.

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“The obvious allure of property investments in Dubai is the absence of income tax and capital gains tax when you decide to sell. Investors can achieve up to 10 percent ROI,” said Simon Pitkin, Managing Partner at DV Property International.

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Jumeirah Lake Towers Gains Popularity Among NRIs

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However, NRIs investing in Dubai should familiarise themselves with key government bodies, such as the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA), added Sam Parsons, Property Advisor at dVPI.

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“In the primary off-plan market (under-construction properties from developers), it is crucial to ensure that an escrow account is in place before booking, have a Sale Purchase Agreement (SPA), understand potential delivery delays (delay clause), know when you can resell the property (exit clause), and eventually obtain the pre-title deed (Oqood). In the secondary market (properties sold by individual owners), understanding the resale process and the transfer of ownership at the DLD trustee office is essential. This includes being aware of the various forms involved (Form A, Form B, and Form F) and being physically present during the transfer unless a Power of Attorney (POA) is arranged,” he said.

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Bajaj further noted that NRI investors increasingly favour prime developing communities such as Dubai Hills Estate, Dubai Creek Harbour, Business Bay, and Meydan. These investors typically prefer locations that are well-connected or show potential for future development.

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“These areas strike a favourable balance: they are established enough in terms of connectivity, infrastructure, and facilities, yet not so developed that entry prices are prohibitively high. This balance allows investors to achieve healthy capital appreciation and maximise their IRR in the long run.

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“They often choose established developers with a strong track record to minimise the risk of project delays. This approach also increases the likelihood of exiting with a healthy premium, whether they decide to resell the property during construction or after its completion,” he explained.

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Simon Pitkin echoed these sentiments, adding that Jumeirah Lake Towers (JLT) is a “go-to” area for NRIs due to its family-oriented environment, lakes, a wide variety of restaurants, superb location with prime access to Sheikh Zayed Road, and the fact that many NRIs have businesses within JLT, which is a DMCC free zone area.

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No Limit on Dubai Property Purchases:

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Pitkin added that there are no restrictions on property purchases by NRIs in the UAE, and those investing over AED 2 million can benefit from a Golden Visa.

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However, he mentioned that mortgage rules for NRIs who are UAE residents are the same as for other ethnicities, with an 80 percent Loan-to-Value (LTV) for first purchases and 60 percent LTV for additional purchases.

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Bajaj highlighted that real estate investors, both local and foreign, continue to benefit from favourable laws in the UAE.

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However, Indian residents considering off-plan property purchases in Dubai should be aware of recent changes to Tax Collected at Source (TCS) regulations in India, as these new rules affect foreign remittances under the Liberalised Remittance Scheme (LRS).

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“These regulations impose a 20 percent rate on amounts exceeding INR 7,00,000 (approximately AED 30,625). This factor should be carefully considered when planning investments, as buyers need to be aware of the total annual instalments according to their payment plans with developers,” he explained, adding that the UAE Dirham is pegged to the US Dollar, allowing NRIs to monitor currency fluctuations by comparing the Indian Rupee with the US Dollar.

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Moreover, NRI investors should be mindful of the accompanying fees involved during the purchase of a property – namely the four percent fees from the Dubai Land Department and other costs related to the resale market (if bought from a landlord as a resale unit) such as the two percent buyer’s commission, conveyance fee, trustee fee, etc.,” Bajaj added.

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Experts Urge NRI Investors to Work with Dubai Real Estate Specialists

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For NRIs considering UAE property investment, it is advisable to explore projects in areas with high demand for both short-term and long-term rentals when buying off-plan properties, according to Pitkin.

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“That way, investors have a very versatile property upon handover, yielding high ROI and appreciation,” he said, adding that “there are a lot of options to choose from, so navigating through the market can be overwhelming without sound advice from a trusted advisor.”

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Bajaj concurred, noting that NRI investors are often unaware of the constantly evolving trends in the dynamic UAE property market.

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“Therefore, it’s highly beneficial to work with a specialist who has their ‘eyes and ears on the ground’ and can provide a comprehensive view of the market – whether it’s identifying upcoming locations, gauging current sentiments, or uncovering potential investment opportunities,” he concluded.

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