Golden Visa, tax benefits attracting Indians to Dubai real estate market

Visakhapatnam: Offer of long-term gold visa, tax-free high return on investment and high capital appreciation due to booming economy have driven many Indians including a large number of Telugu techies, businessmen and others to invest in real estates in Dubai. On an average there is an estimated investment of Rs 500 crore to Rs 600 crore in properties based in Dubai due to various advantages, said Anirudh Sharma, CEO of Magnifiq, a Hyderabad-based property developer.

He told Bizz Buzz here during a two-day Dubai Property Expo organised here recently, that as rental yield in Hyderabad and other parts of India is less due to 18 per cent GST on rental income above Rs 20 lakh per annum, many from Telangana, Andhra Pradesh, Odisha and Chattisgarh are showing interest to invest in properties being developed in Dubai. Many find that the thriving economy and plethora of opportunities available in world-class city like Dubai make it a safe haven to put their investments in off-plan projects.

The expo was organised by HJ Real Estates, a Dubai-based firm, for various premium properties. Senior property consultant of HJ Real Estates Maria Angelica Saplagio said they are targeting investors in off-plan properties on behalf of various reputed developers. The properties will be ready in two to three years. One has to pay 20 per cent down payment plus 4 per cent towards land development fees. She said after 40 per cent construction is over, the owner can sell the property as per the local laws. Buyers need to pay as per progress of construction.

Asked to explain reasons as to why one should invest in Dubai, Anirudh pointed out that “Dubai offers income tax exemption on rental income and capital gains.” He said in the USA, IT is around 40 per cent, UK 44 per cent and India 30 per cent. The cost of residential 1 BHK studio apartment ranges from Rs 1 crore to Rs 4 crore depending on size, amenities and location. Golden visa is given for 10 years for self, family (for both job or business) if an investment of AED 2 million is made by buying a property.

Anirudh said in Dubai, there is a return of 10 to 15 per cent in the form of rental income in the investment as per the projections in the recent past. The authorities are also offering an investor protection program through Escrow account.