Every aspiring real estate investor’s dream is to witness growth in the value of their investments as the higher value leads to higher returns. However, for a few people, investment is just not about putting out their money, but it also includes changing their lifestyle and securing their future due to the rise in the value of their investment.
Real estate is one such area where the rise in investment is mostly guaranteed. Over the past decades, buying a villa in Dubai has evolved and witnessed excellent growth due to the modernization of properties, perfect infrastructure, and world-class amenities.
Dubai is considered the topmost destination for real estate investment in Dubai for the last few years owing to its stable economy, tax-free returns, and comfortable lifestyle. With this, investment in Dubai’s real estate sector can provide a higher return on investment, but one needs to adhere to an adequate planning strategy and perform research work with diligence.
In this blog, we have shared complete details on how to buy a villa in Dubai from India for the ease of aspiring investors.
Reasons Why Indians Should Buy Villa in Dubai
There are a plethora of reasons why Indians Should Buy Villas in Dubai as shared below:
- Dubai’s Stabilized Economy: There is variation in economic and political conditions in India and also lack of benefits for real estate investors has encouraged Indian real estate investors to buy villas in Dubai. On the contrary, the economy of Dubai is evolving and growing and is attracting tourists and investors with its unstoppable growth. As a result of this, there is a rise in population which has increased demand and rental rates for the properties.
- Higher Return on Investment: The cost of property in India is high which results in lower capital appreciation in the coming years. However, Dubai’s property market provides a higher rental yield annually and considerable capital appreciation in the future. The annual return on investment of properties in Dubai’s real estate market is much higher as compared to other countries of the world.
- Tax-free Returns: Going by the trends, the annual ROIs range between 6 to 10% and there is tax-free rental income in Dubai. Furthermore, it is expected that the capital appreciation will not be majorly affected due to fluctuation in the currency as Dirham is considered more secure than Indian Rupee.
- Easy Investment: There are innumerable residential and commercial real estate properties in Dubai that come along with furnishing, fixtures, and fittings. Also, every property owner is given a parking space for free whereas in India you need to pay the charges for the parking space separately. If you are searching to buy a villa in Dubai, then you must know that there are various amenities and facilities offered along with the property such as a gym, kids playing area, and swimming pool to make your lifestyle comfortable and luxurious.
How to buy Villa in Dubai from India?
After knowing the reasons why Indians Should Buy a Villa in Dubai, one must check the steps to buy a villa in Dubai from India as shared below:
Research the market
Before buying a villa in Dubai’s real estate market, one must research the market trends thoroughly. To do this efficiently, you must first review the current trends, recent prices, demand, and supply of villas in the places you are interested in. With this, you can also consider the recommendation of real estate experts or check online portals, and even attend property fairs to collect reliable data and information.
Select the right location
Dubai is a huge city with a wide variety of neighborhoods, each with different features and amenities. Thus, when you decide to invest in Dubai’s real estate, make sure to pick the right location that aligns with your investment goals. For instance, if you are searching for a property with a high rental yield then Downtown Dubai, and Dubai Marina are the popular choice.
Familiarity with the legal framework
If you are willing to buy villas in Dubai then it is important to have proper knowledge of the legal framework. Thus, one should read the necessary rules and guidelines to understand the legal criteria, the list of documents required, and the process involved in buying and selling villas in Dubai is crucial.
Review Your Financial Stability
As we know, the real estate market of Dubai offers different types of properties, including apartments, villas, commercial, and townhouse properties. If you are buying a villa in Dubai, then it is essential to check important factors like your short-term & long-term investment goals, budget, location, and rental yield to make informed decisions.
Choose the right developer
Selection of the right developer is important when it comes to buying villas in Dubai. The city has a plethora of prestigious developers who provides high-quality properties with world-class amenities and higher returns on investment. Hence, it is advisable to check the past records of developers, reputation, and financial stability before buying a villa in Dubai.
Financing options
Buying villas in Dubai requires considerable capital, and investors are advised to go through all the financing options. There are numerous banks in Dubai that offer a plethora of financing options like mortgages, which are used for financing a villa purchase. It’s crucial to stay updated with all the financing alternatives, interest rates, and repayment terms before finalizing any financing option.
Tax-free Environment
Dubai is a popular and attractive city for real estate investment because of its tax-free environment. But, it is important to go through all the tax implications before buying a villa in Dubai including property registration fees, maintenance fees, and property transfer fees.
Property management
Buying villas in Dubai requires sufficient property management to get a better return on investment. In property management, there are various factors included such as tenant management, maintenance, rental collection, and upkeep. Thus, it is important to select the prestigious property management company that manages your property and ensures a higher rental yield.
Where can you earn the highest ROI on villas in Dubai?
There are various myths, but the profitable return on investment in Dubai’s real estate market is no hidden secret. The major components to research and review the data and then make an informed decision are actually based on past trends. Thus, one should analyze the data carefully and discover the areas providing the highest ROI on villas in Dubai. It will be helpful for all the investors who are willing to buy villas in Dubai.
Here, we have compiled below the best areas where buying a villa is expected to be profitable owing to the attractive ROIs.
| Area | ROI |
| Al Barari | 9.24% |
| Dubai Marina | 8.96% |
| Al Rashidiya | 9.11% |
| Arabian Ranches 3 | 8.06% |
| Town Square | 7.22% |
How to avoid difficulty when buying Villa in Dubai?
Some of the difficulty faced by Indian real estate investors when buying a villa in Dubai includes:
- Scams
- Purchasing a villa in the incorrect neighborhood
- Buying fake villas, or villas that are being sold illegally.
- Purchasing a villa for too high a price
- Wrong or absent proper paperwork
The best way to deal with these types of problems when buying villas in Dubai is to perform research on the real estate agents thoroughly to ensure they are legally registered. Before you commence the process to buy a villa in Dubai, you need to ensure that the real estate agent or property developer has been legally registered with the Real Estate Regulatory Authority (RERA). Additionally, real-estate investors should make sure that their real estate agent has finished all the paperwork for a villa purchase correctly, including a No Objection Certificate (NOC) and a Memorandum of Understanding (MOU).
Indian real estate investors should make sure that they completed their proper research work on the neighborhood in which they will buy the villa, and also have compared prices and rents of the property in the respective area. This will help them to avoid paying high for a property and making a poor investment decision. Thus, one should look for a genuine agent who can provide the right suggestions on rental rates, rental yields, property prices, and much more.
Conclusion
The real estate market sector is approximately one-third of the UAE’s economy. The Dubai Real Estate Regulatory Agency (RERA) and Dubai Land Department (DLD) are creating new methods to make the property purchasing procedure quick and easy for real estate investors. Thus, all aspiring investors should stay updated with all the information well in advance before buying a villa in Dubai Visit Dubai Housing. Investment in the right villa at the right time can offer lucrative returns on your investment which can benefit you in the coming years.
FAQs
Q1. Can a foreigner buy a villa in Dubai?
Ans. Yes, an Indian real estate investor can buy a villa in Dubai.
Q2. How can an Indian invest in Dubai real estate?
Ans. Indians can send over Rs.1.85 crore overseas at the end of every financial year. Also, if any Indian invests 1 a million Dirhams or above in Dubai real estate, they are permitted to possess a three-year Dubai residency visa.
Q3. Is buying a villa in Dubai easy?
Ans. The new property purchasing rules have made property investment in Dubai a bit more challenging which could be addressed by connecting with an experienced property agent.
Q4. Can an Indian get Dubai citizenship?
Ans. There are no specific rules for claiming citizenship in Dubai, but one can receive a residency visa by purchasing Dubai property and can even renew it upon completion of its tenure.