Real Estate Investment is a great option for growing your money and many individuals are looking beyond our borders to grow their investments in real estate. This is a great way to diversify your investment portfolio. The Liberalised Remittance Schedule for Indian individuals for foreign investments is $250,000 per year as set by the Reserve Bank of India. This has opened a wider opportunity for individuals to invest into a variety of properties. The number of Indians purchasing properties overseas has grown year on year with Dubai being the primary destination of choice followed by the USA.
While the Indian real estate market is mired in a variety of issues from RERA to GST that has dampened the sentiment of buyers, the investments in the foreign markets are growing every year. High loan interest rates and steep urban prices are driving many to invest into foreign properties. Metro living conditions are also not conducive to see good rental yield or return on investment when compared to a foreign property investment.
Who is buying?
The profile of buyers who are buying properties abroad include business owners, professional property investors, mid-to-top level management executives and High net worth individuals. A large set of buyers have children either studying or living in these places. The highest preference of places where Indians are investing are Dubai, Singapore, Malaysia, United Kingdom and United States of America. But keeping the cap of investment amount in mind, Dubai is emerging as a preferred location for investment.
Dubai: The Hottest Real Estate Investment Destination
The Emirate of Dubai is the second largest of the seven United Arab Emirates and it continues to grow with the biggest and largest constructions in the world. Located on the Eastern coast of the Arabian Peninsula, this global city is a business hub and one of the most sought-after real estate investment options. With over 200 nationalities living and investing in Dubai and being easily accessible from just about anywhere in the world, Dubai boasts of being one of the easiest places in the world to do business. In 2020, Dubai is the location for the World Expo and expects 25 million visitors, of which 75% will be overseas visitors.
It is one of the highest rated places for ease of doing business and has set up Free Zones that gives companies 100% foreign ownership with exemption from all import duties. Investors can also enjoy 100% repatriation of capital and profits and freedom from corporate taxation.
The Dubai real estate sector is growing largely driven by foreign nationals living in the UAE and overseas investors from across the world. Indian nationals topped the list of foreigners investing into Dubai, followed closely by Saudi Arabian nationals. Indian nationals alone invested INR 301 billion in 2017 as per official records from the Dubai Land Department.
Dubai Property Investor Visa
As the number of people wanting to buy homes and invest in commercial property in Dubai increases, the most essential necessity is obtaining the Dubai Property Investor Visa. The minimum investment value for an investor is AED 1 million and this can be for a single property or split between two properties, once this basic criterion is met, one can apply for the investor visa. All the properties obtained using this visa are freehold. The entire procedure of obtaining the visa from the Dubai Land Department would take a minimum of 4 weeks at least, if all the papers are in order. It is best to engage a consultant as there are many moving parts in obtaining the visa. You need not have resided in Dubai to get this visa.
Why Invest?
Real Estate investments need to yield two types of returns – rental income and appreciation of the asset for re-sale. Dubai offers a great return on both aspects. Here are a few reasons for considering investing into Dubai
A Case Study for better understanding
One of our HNI clients had invested in two properties at the same time in 2017 – one in India and the other in Dubai. Both the properties carried the same value of INR 2 crore (AED 1 Million). The annual income of the client that is taxable is INR 1 crore and after considering a few differences were evident.
Thinking of investing?
Today the world has become our oyster and borders have blurred for trade and business growth, so if you are thinking of investing into real estate in foreign markets then you need a trustworthy partner to guide you and Elite Lifespaces can bring you the best properties to your doorstep. We offer a wide selection of uber luxury properties in Dubai, Australia, London or USA. With 15 years of rich expertise in the field, Elite Lifespaces curates uber luxury residential and commercial properties in the best locations with the highest rental yield and great capital appreciation effortlessly.
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