The Indian Investor's Checklist for Finding Affordable Properties in Dubai By Vishal Pathak, Content Writer

The Indian Investor's Checklist for Finding Affordable Properties in Dubai

Vishal Pathak, Content Writer | Tuesday, 21 January 2025, 06:24 IST

The Indian Investor's Checklist for Finding Affordable Properties in Dubai The real estate market in Dubai is changing and this has seen many Indian investors shift their attention to the busy property industry of the city.

In case you may be thinking of investing in cheap properties for sale in Dubai either for rental or as a buy-to-let option, then this exhaustive guide focuses on some crucial factors that relate to Indian investors and explains where they can get cheap housing options within the bustling Dubai property sector.

1.Gauge Your Investment Goals and Budget

Determining the reason for which you want to invest is paramount for an Indian investor. Do you want a house that will provide some income, are looking for capital growth, or just need family accommodation in Dubai? When you define what you aim at, it becomes easier for you to select those properties and places that cater to your exclusive requirements.

2.Understand the Affordable Property Segments in Dubai

Even though Dubai is known for its luxurious properties, there are many affordable ones available for buyers who want to spend less at the beginning.

2.1 Affordable Apartments

The most sought-after locations for affordable apartments in 2024 are:

1. Dubai Silicon Oasis (DSO)

The affordable apartments at Dubai Silicon Oasis have a high ROI potential. The fact that DSO is a technological center with tax exemptions makes it ideal for both single and married people; this in turn guarantees constant rental rates and increases in prices of property.

ROI: 9.15%
Average price of studio: AED 421,000 (INR 99.18 lacs)

2. Dubai Sports City

Investors looking for good rental returns and capital appreciation are drawn to cheap apartments at Dubai Sports City which have an average ROI rate of 9.34% given its increasing popularity, unique location, and focus on sports.

ROI: 9.34%
Average price of studio: AED 467,000 (INR 1.1 crore)
2.2 Affordable Villas

Affordable villas in Dubai are now attracting the attention of wealthy Indian investors.

1. DAMAC Hills 2

The family-friendly neighborhood of DAMAC Hills 2 has cost-effective lavish villas. For those people who wish to have a comfortable life in the newly expanding Dubai’s property sector, the development pulls in buyers who will see it as an investment for years and residents looking for a place with a sense of community and nearby facilities.

ROI: 6.66%
Average price of 3BHK villa: AED 1,569,000 (INR 3.7 crore)

2. Dubailand

The investment opportunity provided by Dubailand for Dubai villas is exceptional as it offers different kinds of housing units in a bustling society. This is because of its strategic positioning, availability of many facilities, and continual growth that pull both family people and investors towards it.

ROI: 6.15%
Average price of 3BHK villa: AED 2,577,000 (INR 6 crore)

3. Perform Thorough Market Research

It is advisable that Indian investors check the latest market reports such as Bayut’s Dubai Sales Market Report 2024 before buying so that they can know how prices have changed from one year to the next. For example, the recent data for 2024 reveals that there were 169,000 units sold in Dubai comprising both residential and commercial properties amounting to AED 488 billion (INR 11497 billion).

4. Check Key Location-Based Factors

The position of a property is still very important in determining how much it will be worth in the future and the income that one can get from renting it out over a long period. Some proximity factors make an affordable property more attractive to Indian investors, such as being close to public transport, retail, and leisure amenities.

5. Target Off-Plan or Ready-to-Move Properties?

Off-plan or ready-to-move-in housing options can have a significant impact on the financial plans and returns of Indian investors. Dubai’s off-plan market offers staggered payment plans and lower initial costs, which can be advantageous for those looking to leverage future capital appreciation.

6. Legal Considerations for Indian Investors

It is allowed by the Dubai government for foreigners, which includes Indians, to have freehold properties in specific zones. In case you are looking at a cheap way of investing your money make sure that you buy your property on an allocated freehold and not otherwise as this will give you all the rights of ownership over such property. Furthermore, take into account transaction costs and taxes such as:

Dubai Land Department (DLD) Fee: Typically 4% of the property value.
Agency Fees: Can vary, typically around 2%.
Bank and Valuation Fees: If you opt for a mortgage.

7. Due Diligence Before Making an Offer

Purchasing a cheap property does not negate the need for a detailed examination unless you are dealing with someone who you trust to do it in your place. What one should be keen about are the construction standards, upkeep record, and probable maintenance cost in that order of priority.

8. Maximizing Your ROI Through Effective Management

After identifying a cheap place to buy, you should then set up the right rental price which is very crucial. Make sure that your rental rates are similar to those of other properties within the vicinity.

Conclusion

The real estate market in Dubai is still doing well and any Indian investor who plans well and follows the right budget can find some cheap properties there. With the information given here, one can have an enhanced search but should also check with current data on sales within Dubai so as to get a cost-efficient unit within this globally coveted city that defies any economic logic by continuing to attract massive investments today.

Frequently Asked Questions

Q1: How much money do I need to invest in Dubai's affordable property market?

A: Different properties require different minimum amounts for investment. Studio apartments in Dubai Silicon Oasis or Dubai Sports City are expected to cost between AED 300,000 (INR 70 lacs) and AED 500,000 (INR 1.2 crore) when found within the affordable places of those areas. Please note that the value of the property can be much influenced by its condition, size, and proximity to amenities.

Q2: What are the financing options available for Indian nationals buying property in Dubai?

A: Indian citizens can get mortgages from UAE banks, use developer payment plans, make cash purchases under the Liberalised Remittance Scheme, or mix these approaches. Usually, for non-residents, UAE banks fund up to 50-75% of the property value.

Q3 What are the typical maintenance costs for affordable properties in Dubai?

A: It depends on the type of property and where it is located to determine how much one will spend on annual maintenance. To be specific, the yearly maintenance cost for flats in cheap locality is approximately AED 10 (INR 235) - AED 20 (INR 470) per square foot.