Indian Real Estate Investors' Benefits from Dubai Freehold Areas
Published Date: 29th Aug, 2024
Indian Real Estate Investors' Benefits from Dubai Freehold Areas
Indians make up a significant share of the surge of international investors attracted by the country's modern infrastructure, tax-friendly environment, and thriving economy.
One of the primary features drawing Indian interest in Dubai is the concept of freehold ownership. Freehold properties confer ownership rights for an indefinite period, while leasehold properties only grant possession and total control over the property. Indian property investors can make wise selections by reading this article, which emphasizes the benefits of freehold possession in Dubai.
Recognizing Dubai's Freehold Areas
Dubai divides its territory into zones that are leasehold and freehold in a calculated manner. Freehold zones were created in 2002 and have allowed non-citizens of the United Arab Emirates, including Indians, to own all property. These zones' exponential expansion has had an impact on Dubai's real estate market. The Dubai Land Department is the regulatory body overseeing property transactions in Dubai (DLD). It streamlines the process of registering properties, guaranteeing investors a transparent and secure environment.
Indian Investors' Benefits from Freehold Ownership
The freehold ownership of Dubai offers many noteworthy benefits, making it a desirable investment destination for Indians.
Complete Possession and Governance
Indian investors can fully control their property through freehold ownership. Renting, buying, selling, or leaving it to their successors are all options open to them. Unlike leasehold properties, where customization and potential value improvement are allowed, there are no restrictions on repairs or renovations.
Exceptional Prospects for Cash Growth
There has been significant capital appreciation in Dubai's property market in the past. In 2024, residential property prices in Dubai are projected to increase by 4% to 5.9%, based on a study conducted by Savills World Research. A constant stream of tourists, the staging of significant occasions notably Expo 2020, and continuing infrastructural developments are the main drivers of this expansion. Many Indian investors have experienced substantial improvements in property value over time, and there are numerous success stories to illustrate this.
Opportunities for Rental Income
Dubai's booming rental market is a beneficial opportunity for Indian investors seeking a reliable source of income. Desirable freehold zones are home to apartments and villas that consistently yield high rental yields. As per Global Property Guide, the average rental return on an apartment in Dubai is currently approximately 6.5%. Due to the reliable income stream that investors can rely on, Dubai is a wise investment for portfolio diversification.
Benefits of Taxes
Freehold possession in Dubai has the major advantage of not having any property taxes attached to it. Unlike India, where property ownership is subject to annual taxes, Dubai offers tax-free conditions that optimize investment gains for Indian investors.
Visa Benefits
Dubai residence visas are granted to owners of freehold property. A ten-year Golden Visa that comes with full resident privileges requires a minimum investment of INR 4.53 cr (AED 2 million); for a 2-year residential visa, costs INR 1.70 crore (AED 750,000).
Date: 29th Aug, 2024
