Real Estate

The Indian Rich Property Investment in Dubai: Uncovering Tax Benefits and Lucrative Rental Yields

Rich Indian investment Dubai

When the COVID pandemic was over, the real estate market was booming, and affluent Indian were looking for rich property investment outside of India, especially in Dubai. According to ANAROCK, Indians will buy 40% of all homes in 2022, with a total investment of ₹35,000 crore, nearly doubling the amount they invested in 2021.

In the third quarter of 2023, Indians surpassed Britons as the top investors in Dubai’s real estate market, according to Better homes Residential Market Report 2023. About $335 million were invested in Dubai real estate by rich Indian investors in the first six months of the year as property investment.

In terms of price appreciation and rental yields, the Dubai real estate market has experienced robust growth. The average apartment price rose by 18.3% in 2023, while the average villa price increased by 22.2%. According to Morgan Owen, managing director, Middle East and North Africa, ANAROCK Group, a real estate services company, short-term rentals are projected to grow by 20% and long-term rentals by 15% in 2024.

Potential for growthRich Indian investment Dubai

Based on a robust economy and foreign investor interest, Dubai’s real estate market is projected to grow by about 15% in 2024.

“Dubai real estate has been very volatile over the last few years, but the last two to two and a half years have been a golden period,” says Sanjay Guha, Founder and CEO of Acquist.

Rich Indian investment Dubai-Tax benefits and golden visas

The city has long been regarded as a second home for many Indians because of its proximity to India and a sizable Indian diaspora. The attractive aspects of investing in Dubai include impressive rental yields, robust capital appreciation, and the stable Emirati Dirham (AED) pegged to the US Dollar, explains Akash Puri, director, international, India Sotheby’s International Realty.

As a result of Dubai’s “Golden Visa” initiative, Indian investors have also shown considerable interest. Acquiring property is the easiest way to secure a Golden Visa and invest in Dubai. You will be eligible for a Golden Visa if you buy a property worth at least 2 million dirhams in Dubai. This visa will last for 5 years and can be renewed based on the same criteria.

In addition to its tax-free environment, Dubai also has no capital gains tax, making real estate investments a compelling proposition.

Guha says that in places like South Mumbai, you cannot buy anything at this price at this price if you look at Dubai.

The reasons why HNIs invest

Many HNIs invest in Dubai to de-risk their portfolios. Since the Dirham is pegged to the dollar, they have alternate asset classes in dollar terms.

“Dubai offers rental yields of 4% to 7% annually, and there are no taxes on rental income or capital gains,” says Owen.

Dubai properties have another advantage as well. “In Dubai, you can purchase a flat, rent it, get the money into your account, pay any required taxes sitting at your home in India or anywhere in the world, it is that easy and professionally managed,” Guha says.

What is the best way to invest in Dubai property?

By implementing the Liberalised Remittance Scheme (LRS), the Reserve Bank of India (RBI) allows Indian residents to freely remit up to 0,000 per financial year (April 1st to March 31st) for any permissible current or capital account transaction. About ₹2 crore is what this is about.

So this is the also a big reason for rich indian are doing investment in Dubai.

Consider a scenario where a family is purchasing a property worth ₹8 crore in Dubai. Each member has the ability to transfer up to ₹2 crore approximately by the end of one financial year, which is March.The payments for the property could be structured in such a way that half is paid at the end of one financial year and the remaining half during the next financial year, as suggested by Guha. By completing this transaction towards the end of March, there will only be a minimal gap between utilizing the limits for both individuals in both financial years.

Here are some things to keep in mind

Understanding the legal aspects of Dubai property ownership is paramount to ensure a smooth and compliant investment process before investing in a Dubai property.

Buying a property in Dubai begins with clearly defining the end goal, whether it is for investment or personal use. A property’s long-term value is also affected by its location and reputation, which Puri says guides the selection process alongside comprehensive market research and using a reputable agency.

Editorial Director
I'm Shruti Mishra, Editorial Director @Newsblare Media, growing up in the bustling city of New Delhi, I was always fascinated by the power of words. This love for words and storytelling led me to pursue a career in journalism. In this position, I oversee the editorial team and plan out content strategies for our digital news platform. I am constantly seeking new ways to engage readers with thought-provoking and impactful stories.

Leave a Reply

Your email address will not be published. Required fields are marked *