NRIs Can Now Own Property in UAE – Here’s How

REAL ESTATE1 month ago

Dubai, UAE – May 23, 2025 – Non-Resident Indians (NRIs) have long seen the United Arab Emirates (UAE) as a second home. With over 3.5 million Indians living in the UAE, it’s no surprise that interest in real estate investment is on the rise. But how easy is it for NRIs to own property in the UAE? What laws should they be aware of? And where are the best opportunities?

This article breaks down everything NRIs need to know about owning real estate in the UAE, especially in Dubai – the heart of the Gulf’s property boom.

Why UAE Real Estate Is Attracting NRIs

NRIs have several reasons to invest in the UAE’s real estate market:

Tax-free rental income: The UAE does not impose income tax on rental earnings.
High rental yields: Dubai offers some of the highest rental returns in the world, with averages ranging between 6% to 8%.
No property tax: Once you purchase a property, there are no annual property taxes.
Stable market: The UAE government has strong regulations that support investor confidence.
Lifestyle benefits: Quality of life, safety, and infrastructure in cities like Dubai and Abu Dhabi are world-class.

Can NRIs Legally Buy Property in the UAE?

Yes, they can. NRIs are legally allowed to buy property in designated areas in the UAE known as “freehold zones.” These are areas where foreigners, including NRIs, can own property outright. This rule applies across various emirates including Dubai, Abu Dhabi, Sharjah, and Ras Al Khaimah.

What is a Freehold Area?

A freehold property allows the buyer full ownership of the unit and the land it stands on. Popular freehold areas in Dubai include:

Dubai Marina
Downtown Dubai
Jumeirah Lake Towers (JLT)
Palm Jumeirah
Business Bay

In Abu Dhabi, NRIs can invest in areas like Al Reem Island, Yas Island, and Saadiyat Island, where foreign ownership is permitted.

What Are the Types of Properties NRIs Can Buy?

NRIs can buy the following property types in freehold areas:

Apartments
Villas
Townhouses
Office Spaces (in commercial zones)

Properties can be bought off-plan (before construction is completed) or ready-to-move-in. Off-plan properties often come with attractive payment plans, but carry construction risk.

Steps for NRIs to Buy Property in the UAE

Buying property as an NRI in the UAE is a straightforward process:

1. Choose a Freehold Property

Work with a RERA-certified real estate agent (in Dubai) or a licensed agent in your chosen emirate to shortlist options.

2. Reserve the Property

Pay a booking fee (usually around 5%-10% of the property value) to reserve the unit.

3. Sign the Sales Agreement

The sales purchase agreement (SPA) outlines payment terms and timelines.

4. Pay Registration Fees

Dubai Land Department (DLD) requires a 4% registration fee, paid by the buyer.

5. Get the Title Deed

Once payment is complete, the property is registered in your name. You’ll receive a title deed, confirming ownership.

Financing Options for NRIs

Many banks in the UAE offer home loans to NRIs, usually covering up to 50%-75% of the property value. Key eligibility criteria include:

Valid passport and visa
Proof of income
Credit score and bank statements

Loan tenure can go up to 25 years, and interest rates vary from 3% to 6%, depending on the bank and loan type.

Can NRIs Rent Out Their Property?

Absolutely. NRIs can rent out their property either long-term or on a short-term (holiday home) basis. Short-term rentals, especially in tourist-heavy areas like Dubai Marina and Downtown, can yield higher returns.

Make sure to register with Dubai’s Department of Economy and Tourism (DET) if opting for short-term leasing.

Important Legal Considerations

No Residency Required: You do not need to live in the UAE to own property.
No Citizenship Path: Property ownership does not lead to UAE citizenship, but it can help with long-term visas.
Golden Visa Option: Investing at least AED 2 million (~INR 4.5 crore) in UAE real estate may qualify NRIs for a 10-year UAE Golden Visa.

Common Mistakes NRIs Should Avoid

Skipping legal checks: Always verify property title and approvals.
Not checking developer reputation: Especially in off-plan projects.
Ignoring service charges: These are annual maintenance fees and vary widely.
Poor rental management: If not living in the UAE, use a professional property management company.

Outlook for 2025 and Beyond

The UAE real estate market, especially in Dubai and Abu Dhabi, is expected to grow steadily. Major infrastructure projects, visa reforms, and increased foreign investment will keep pushing demand.

According to recent data from Bayut and Property Finder, Indian investors were among the top foreign buyers in 2024. This trend is likely to continue, especially with favorable exchange rates and growing trust in the market.

Final Thoughts

For NRIs looking to diversify their investments or own a second home, the UAE is a top choice. With its investor-friendly laws, tax advantages, and luxury lifestyle, owning property in the UAE is no longer a dream – it’s a smart move.

Whether you’re planning for rental income, capital appreciation, or a future home in the Gulf, now is a great time to explore UAE real estate opportunities.