Dubai is a global market that attracts individuals from all parts of the world for work, study and leisure. This translates into a high amount of rental activity in the market. As per historical data, Dubai assures lucrative Returns on Investment (ROI). On average, the annual rental yield, the method of gauging the ROI, is upwards of five percent in Dubai. At the same time, areas like Dubai Marina, Downtown Dubai, and Jumeirah Village Circle (JVC) manage to rake in over 7-8 percent rental yield.
UAE is known for its investor-friendly practices. An investment in Dubai attracts no annual property tax, income tax, capital gains tax, rental revenue tax, or Value Added Tax (VAT). This allows an investor to dedicate a much larger financial portfolio to purchasing property and, in turn, get higher returns. On average, an Indian can buy a luxury property in Dubai for Rs 2-6 crore. Interestingly, although investment in Dubai is devoid of direct taxes, you might be required to pay municipality fees and private community charges.
The UAE administration has recently announced two significant relaxations to its coveted Golden Visa. The Golden Visa is essentially a long-term residential permit that allows foreign nationals to invest, work, study, reside and own business in the emirates. As per new norms, the minimum investment to avail Golden Visa has been brought down to AED 2 million, as opposed to AED 5 million previously. Also, the visa will now be extended from five years to 10 years.