Dubai real estate investment has become the top destination for Indian Investors, with many claiming Golden Visas, tax-free rental returns, and hands-off wealth growth. But how much of this is real? In this article, we’ll unveil the biggest Dubai property myths and highlight the key realities that every Indian investor should know.
Myth 1: “ Once I buy property, I get a GOLDEN VISA for 10 years”
Reality: Yes, Dubai offers a 10-year Golden Visa through property investment, but it comes with conditions. The visa is directly tied to property ownership. If you sell the property, you lose your Golden Visa, which creates an emotional trap for many investors, and due to this, investors hesitate to sell their properties even when the market is at its peak, in fear of losing their residency status.
Tip: Make an investment decision based on the financial merits, not on emotional attachments and visa dependency.
If your primary goal is a Golden Visa residency, there are other alternative options for the same, which don’t tie up your funds in the volatile real estate markets. This gives you more flexibility, better liquidity, and potentially lowers the risks.
For a detailed breakdown of these alternatives, watch our video on “How to Get the Dubai Golden Visa Without Buying Property” in the link below.
Myth 2: “ Dubai offers 6-8% Rental Yields, Much Higher than India”
Reality: That’s true, Dubai’s rental yields are impressive, as per CBRE. In Q4 2023, the rental yield was 7.1% compared to 3.5% in Mumbai.
But remember that Dubai is highly sensitive to global economic events
For example:
- In 2008-09, property prices crashed by over 50% during the global financial crisis
- Between 2014-16, oil price crashes led to major corrections.
In conclusion, higher returns are possible, but they come with greater risks.
Myth 3: “ Rental Income from Dubai is completely tax-free”
Reality: Yes, Dubai does not tax rental income. However, if you are a tax resident in India, then things change, as per Indian law, you are liable to pay tax on Global Income. Including rental income from Dubai, even if you don’t bring it back.
Unless you’ve officially changed your tax residency status, the “tax-fee” claim doesn’t apply.
Myth 4: “Property prices are rising and I’m already in profit”
Reality: Yes, prices have risen in recent years, but it’s paper profit until you sell it. Like any real estate market, Dubai lacks liquidity, and property sales can take time. Especially in a down market.
Tip: For an investor, entry and exit matter the most in real estate investing.
Evaluation of not just the current trend, but also how easily you can exit and realize profits when needed.
Myth 5: “ Under construction projects are better, I can pay in installments”
Reality: It seems convenient, but it comes with project risk
- What if the developer delays or defaults?
- What if construction halts due to political or economic turmoil?
Dubai’s market is regulated, but it is not immune to global stocks
Tip: Often, ready properties or distressed sales provide better value at
- Lower risk
- Better rental value
- Competitive per sq ft. pricing (especially when compared to nearby under-construction projects)
Myth 6: “ Indians can get cheaper loans to buy Dubai property”
Reality: As per RBI guidelines, Indians cannot take foreign loans to buy overseas property.
In this funding, options are limited to
- Your savings
- Gifts from close relatives
- Funds remitted under the Liberalised Remittance Scheme (LRS)
But bank loans in Dubai? Not allowed for indians
Conclusion :
Dubai is a great opportunity that it offers.
- World-class infrastructure
- High-quality lifestyle
- Attractive investment potential.
But don’t be swayed by marketing myths or emotional narratives. Real estate is more than an asset; it’s a long-term commitment. Immigration is more than a visa; it’s a life decision for you and your family.
About Acquest Advisors
Acquest Advisors is a trusted immigration consultant agency specializing in Business Immigration and Residency/Citizenship by Investment programs across the U.S., Europe, and the UAE.
We offer comprehensive, end-to-end support, assisting clients with source of funds planning, investment selection—whether in projects, property, or business as well as documentation, business plan preparation, and foreign remittance. Our dedicated team ensures a smooth and hassle-free immigration journey.
Need Guidance?
If you’re exploring Dubai real estate or the Golden Visa and want to understand your options through a balanced, informed lens, my team and I are here to help.
Book a consultation or drop your questions, and we’ll help you make your global move with confidence.
Watch Full Video
For a more detailed explanation of each myth and additional tips, watch the full video on our YouTube channel: