Al Furjan Property Investment Guide for India-Based Buyers

Why Al Furjan Appeals to India-Based Investors

Al Furjan is a freehold community in west Dubai, positioned between Discovery Gardens and Jebel Ali. It is not the most glamorous address in the city, and that is part of its appeal for yield-focused investors. Apartments here are priced below the Downtown or Marina markets, which means the rental income relative to purchase price — the gross yield — tends to be higher. Al Kareem Properties' data for the area currently places gross yields at approximately 7%.

For Indian buyers specifically, there are two structural advantages worth noting:

• Familiar developer names: Sobha Realty, one of the developers Al Kareem works with, has strong brand recognition in India. Buyers who have followed Sobha's Indian projects often find it easier to assess quality and delivery credibility.
• Price bracket aligns with LRS capacity: Entry from AED 700,000 is roughly USD 190,000, which sits within the USD 250,000 annual LRS limit for a single resident-Indian remitter — making a full cash purchase theoretically possible in one financial year without involving a co-buyer.

The community has a metro station (Al Furjan Metro, Route 2020 line), supermarkets, schools, and a clubhouse. It is a genuine residential area with tenant demand from mid-income professionals, which supports occupancy rates.

Remittance Rules and LRS: What India-Based Buyers Must Understand

Before any wire transfer leaves India, buyers need to be clear on the Liberalised Remittance Scheme (LRS) framework and how it applies to their situation.

• Resident Indians can remit up to USD 250,000 per person per financial year under LRS for overseas property purchases. A couple buying jointly can therefore remit up to USD 500,000 — approximately AED 1.84 million — in a single year. For properties above that threshold, phased payments across financial years or co-ownership structures may be required.
• NRIs using NRE account funds or foreign-currency earnings face no LRS cap. NRE funds are freely repatriable and can be used directly for overseas property without restriction on amount.
• TCS at 20%: As of October 2023, Tax Collected at Source (TCS) applies at 20% on LRS remittances above INR 7 lakh per year (with the exception of education and medical). This TCS is not an additional tax — it is credited against your income tax liability — but it does create a temporary cash-flow impact that buyers should plan for.

Al Kareem Properties can connect you with remittance specialists and forex services to structure the transfer efficiently. Always consult a CA familiar with FEMA and LRS before remitting.

UAE Tax Position and India Tax Obligations

The UAE levies 0% tax on property purchases, capital gains, and rental income at the source. There is no annual property tax, no wealth tax, and no inheritance tax on UAE real estate. This is a genuine structural advantage over most other overseas property markets.

However, India-based buyers must account for their home-country tax obligations:

• Resident Indians: Rental income received from a Dubai property is taxable in India under the head 'Income from House Property' on your Indian tax return. You must declare it regardless of whether the income is repatriated. The India-UAE Double Taxation Avoidance Agreement (DTAA) provides relief — since UAE levies no tax, the DTAA mechanism here primarily ensures you are not taxed twice if UAE taxation ever applies, but the Indian tax liability remains.
• Capital gains: Profits on sale of an overseas property are taxable in India as capital gains. Long-term capital gains (held over 24 months) attract 12.5% without indexation under current rules. Consult a tax advisor for your specific position.
• NRIs: Tax residency rules differ. NRIs are generally not taxed in India on income sourced outside India, provided they meet the non-residency criteria under the Income Tax Act. Confirm your status with a qualified advisor each year.

Net yield after Indian tax will be lower than the 7% gross figure. Factoring in service charges and a realistic vacancy allowance, net returns for a resident-Indian buyer are likely in the 4.5–5.5% range depending on individual tax rates.

Off-Plan Payment Plans: How They Work for Indian Buyers

Most new inventory in Al Furjan is sold off-plan by developers including Samana, Imtiaz, and Object 1 — all of whom Al Kareem Properties works with directly. Off-plan plans in Dubai typically follow this structure:

• Down payment: Around 20% of the purchase price on booking.
• Construction instalments: Roughly 1% of the purchase price per month during the build period, paid interest-free.
• Handover payment: The remaining balance (often 30–40%) on completion.

On a AED 700,000 apartment, the down payment is AED 140,000 (approximately INR 32 Lakh). Monthly construction payments at 1% would be AED 7,000 (approximately INR 1.6 Lakh) per month. This staged structure means Indian buyers can spread their LRS remittances across multiple financial years rather than sending the full purchase price at once — a meaningful practical advantage given the USD 250,000 annual cap for resident Indians.

Additionally, Dubai Land Department (DLD) registration fees of 4% are payable on purchase, plus administrative costs of approximately AED 5,000–10,000. On a AED 700,000 purchase, budget roughly AED 28,000–38,000 for transaction costs. These are typically due at contract signing, not at handover.

Off-plan properties are registered in the DLD's Oqood system, and escrow accounts protect buyer funds under UAE law — an important protection to understand before committing.

Golden Visa: The AED 2 Million Threshold in INR Terms

Dubai's 10-year Golden Visa is available to property buyers who purchase at AED 2,000,000 or more (approximately INR 4.5 Crore at current exchange rates). The visa is renewable, covers immediate family members, and does not require continuous UAE residency to maintain — making it particularly attractive for Indian buyers who wish to keep their India base while having long-term UAE residency rights.

For Indian passport holders, the Golden Visa offers practical benefits beyond the property itself: multiple-entry access to the UAE, the ability to sponsor domestic staff, and a UAE residency document that can assist with international banking and travel visa applications in some jurisdictions.

Al Furjan has properties available above the AED 2 million threshold — primarily larger two and three-bedroom units and some townhouses — though the majority of inventory in the community sits below this level. Buyers specifically targeting the Golden Visa may need to consider a higher-specification unit or a different community. Al Kareem Properties can advise on qualifying inventory across Dubai. For full details on the visa pathway, see our Dubai Golden Visa through property investment guide.

For more on the overall investment framework from an Indian buyer's perspective, visit our dedicated invest from India page.

Service Charges, Vacancy, and Honest Net Yield Calculation

Gross yield figures — including the approximately 7% cited for Al Furjan — do not reflect what actually reaches your bank account. Indian buyers comparing Dubai yields to Indian FD rates or equity returns should model the net figure carefully.

On a AED 700,000 apartment generating roughly AED 49,000 gross rent per year, service charges, management, and vacancy could reduce the net figure to AED 35,000–40,000 before Indian income tax — a net yield of approximately 5–5.7% for an NRI, and lower for a resident Indian after personal income tax liability. These are estimates; actual figures vary by unit, building, and tenant. Request the specific service charge schedule from Al Kareem before committing to any unit.

How to Buy Al Furjan Property Remotely from India

Al Kareem Properties manages the full purchase process for overseas buyers without requiring travel to Dubai, though a visit is always welcome if feasible. The typical remote process works as follows:

• Step 1 — Shortlist: Share your budget, preferred unit type, and whether you are targeting yield, capital growth, or Golden Visa eligibility. Al Kareem will send matched listings with floor plans and developer payment schedules.
• Step 2 — Reservation: Pay a refundable reservation deposit (typically AED 5,000–10,000) by international transfer to hold a unit. Al Kareem will send the draft Sales Purchase Agreement (SPA) for your review — have a UAE-qualified lawyer review it if this is your first purchase.
• Step 3 — DLD registration: The 4% DLD fee and admin costs are paid. For off-plan, registration is via the Oqood system. For ready properties, a title deed is issued in your name.
• Step 4 — Ongoing management: Al Kareem can connect you with property management services for tenant finding, rent collection, and maintenance coordination.

All documentation can be signed electronically. Power of Attorney can be used if notarisation and legalisation are done correctly from India — your broker will guide you on this. Contact Al Kareem on +971 50 964 1454 or visit nearby community guides to compare Al Furjan with similar investment areas.