Buy a Rs 5 cr house in Dubai and live rent-free in Delhi? This Reddit user explains how
property investments. One such individual, who runs a business that can be managed remotely, recently shared a unique strategy—buying property in Dubai and using its rental income to fund a rental home in India.
The dilemma arises from the high cost of property in South Delhi, where homes in prime locations cost ₹5-7 crore. Although financially capable of buying a home outright, the buyer feels that the value for money in Delhi’s property market is unappealing. Instead, a relative suggested purchasing real estate in Dubai, which offers better returns and additional benefits like a Golden Visa for investments exceeding AED 2 million (approximately ₹4.6 crore).
A ₹5 crore property in Dubai can yield rental returns between 5-8%, generating ₹25-40 lakh annually. After taxes, this translates to ₹1.7-2.56 lakh per month. In contrast, renting a similar property in South Delhi costs only around ₹1-1.2 lakh per month, based on a rental yield of 1.5-2.5%. This means the investor could cover rent in Delhi while still pocketing ₹1-1.5 lakh monthly from the Dubai investment.
While the plan looks promising, key factors to consider include Dubai’s property market fluctuations, legal regulations for foreign investors, and potential challenges in managing an overseas asset. If executed well, this strategy could allow for homeownership abroad while maintaining flexibility in India—a win-win for those navigating expensive real estate markets.
What did the internet say?
A user highlighted additional costs involved in the Dubai
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