Guide for Indian Investors: Top Areas to Invest in 1 BHK In Dubai Around 1 Crore

Apr 05, 2024

ATK
New Delhi [India], April 5: The real estate sector in Dubai attracts Indian investors due to its favourable investment conditions and potential for significant returns. If you want to invest in this vibrant city, 1 BHK (one-bedroom) apartments are a good starting place, particularly if you have a budget of roughly 1 crore Indian Rupees (approximately AED 500,000). Let's investigate the most promising regions in Dubai for these kinds of investments, paying particular attention to elements like growth potential, lifestyle amenities, and rental returns.
Dubai Silicon Oasis (DSO) - The tech hub with affordable living
A self-contained, technologically driven community with a mix of residential, commercial, and educational amenities. Well-known for its many attractions, reasonably priced housing alternatives, and proximity to Dubai's innovation and intellectual centres.
* Starting 1 BHK Pricing according to Bayut: 1.08 Cr (AED 480,000)
* Rental Yields: 9.08% (According to Bayut's area guide)
* Average Yearly Rental Price: INR 11.57 lacs (AED 51,000)(According to Bayut's area guide)
Pros:
* High demand for rentals from tech sector employees.
* Good amenities like pools, gyms, and proximity to schools and universities.
Cons:
* Located further from Dubai's central areas.
* Less focus on luxury, and more on practical living.
Jumeirah Village Circle (JVC) - Community living with growth potential
A master-planned neighbourhood that caters to families. JVC has parks, community centres, schools, and modern housing complexes. It's a popular option for individuals looking for a good mix of affordability, green space, and community.
* Starting 1 BHK Pricing according to Bayut: 1.12 Cr (AED 495,000)
* Rental Yields: 6.60% (According to Bayut's area guide).
* Average Yearly Rental Price: INR 14.3 lacs (AED 63,000)(According to Bayut's area guide)
Pros:
* Potential for long-term capital appreciation.
* Family-friendly with parks and community centres.
Cons:
* May have ongoing construction in some areas.
* Less established infrastructure than some central locations.
International City - Affordable and consistently in demand
This distinctive region is organised into country-themed clusters, resulting in a diversified and multicultural community. It focuses on inexpensive living, making it accessible to a diverse spectrum of tenants. Expect a vibrant environment with a variety of stores, restaurants, and cultural attractions.
* Starting 1 BHK Pricing according to Bayut: 78.28 Lacs (AED 345,000)
* Rental Yields: 8.5% (According to Bayut's area guide)
* Average Yearly Rental Price: INR 6.35 lacs (AED 28,000)(According to Bayut's area guide)
Pros:
* Excellent rental income potential.
* Multicultural, vibrant atmosphere with diverse restaurants and shops.
Cons:
* Potentially lower capital appreciation over the very long term.
* Fewer luxury amenities compared to prime locations.
Dubai Sports City - A sports-themed community for an active lifestyle
A community with a focus on sports, created for those who lead active lives. It has a variety of sporting facilities, including a cricket stadium, golf courses, and sports academies. Anticipate grassy areas, contemporary residential complexes, and a significant appeal for sports fans.
* Starting 1 BHK Pricing according to Bayut: 1.04 Cr (AED 460,000)
* Rental Yields: 7.3% (According to Bayut's area guide)
* Average Yearly Rental Price: INR 7.94 lacs (AED 35,000)(According to Bayut's area guide)
Pros:
* Appealing to sports-minded renters.
* Abundance of green spaces and sports facilities.
* Potential for growth as the area continues to develop.
Cons:
* May be slightly further from central Dubai.
* Less diverse than some other communities.
Al Furjan: Vibrant and popular residential area

Although Al Furjan is mostly a villa community, it also has contemporary apartment buildings. It is well-known for its family-friendly atmosphere, excellent facilities, and closeness to main highways providing easy access to the rest of Dubai.
* Starting 1 BHK Pricing according to Bayut: 1.07 Cr (AED 475,000)
* Rental Yields: 6.85% (According to Bayut's area guide)
* Average Yearly Rental Price: INR 14 lacs (AED 62,000)(According to Bayut's area guide)
Pros:
* Family-friendly environment with villas and some apartment options.
* Good community amenities like pools, parks, and retail.
* Excellent road connectivity for easy access to other parts of Dubai.
Cons:
* Mainly focused on villas, so apartment options might be more limited.
* Can be further out depending on the specific location within Al Furjan.
Due Diligence is Key
Choosing the right area is only the first step. As part of your due diligence, research ROI & average rental price for 1 bed apartment for rent in Dubai using resources like Bayut. This will help you realistically project rental income potential. Thoroughly research neighbourhoods to understand specific building reputations, rental trends, and ongoing projects. Consider consulting a real estate advisor who understands the needs of Indian investors in Dubai. Visiting the areas in person will give you the best sense of the local vibe and suit your preferences.
Conclusion
There are great prospects for Indian investors to invest in a 1 BHK property in Dubai. The best way to increase your chances of making a profit from an investment is to look at rental revenue, potential for expansion, and facilities that are relevant to your objectives. Do your homework and get some professional advice before making any real estate investments in Dubai.
Frequently Asked Questions
Q1. What are the typical costs involved in buying a 1 BHK apartment in Dubai besides the property price?
Answer: You need to think about things like the transfer fee (usually 4% of the property value) to the Dubai Land Department (DLD), the agent's commission (1% to 2% of the value), the registration fees, and the continuing expenditures (service charges, yearly maintenance fees, etc.). Taxes levied on Indian investors in Dubai or India should also be considered.
Q2. Can I get a mortgage to finance my 1 BHK purchase in Dubai as an Indian investor?
Answer: Financing is feasible, although the terms and restrictions may not be the same as those of Indian banks. Foreign investors may be subject to higher down payment requirements. Look into mortgage possibilities and compare interest rates and repayment conditions with banks in India and Dubai. To find out if you qualify and what your best alternatives are given your situation, speak with a financial expert.
Q3. What are the visa implications of buying a 1 BHK apartment in Dubai?
Answer: While a 1 BHK flat may not directly qualify for a Dubai residency visa, you can explore options like the 2-year Property Visa with an investment of at least INR 1.7 crore (AED 750,000) in the property. Alternatively, the Golden Visa program offers longer-term residency benefits for a larger investment. For the best understanding of your specific visa options, it's recommended to consult a Dubai-focused immigration professional.
Disclaimer: This article's content is solely intended for general informative purposes. This isn't meant to be taken as expert real estate or investing advice. Investment decisions involving real estate should be made after consulting with qualified professionals.
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