Buy a Rs 5 cr house in Dubai and live rent-free in Delhi? This Reddit user explains how

With skyrocketing real estate prices in India’s metro cities, many potential homebuyers are reconsidering traditional 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 property plan, pointing out that maintenance fees range from AED 15 to AED 50 per square foot annually. Additionally, property managers typically charge at least 10% of the annual rent, along with regular repair and wear-and-tear expenses. After factoring in these costs, the realistic rental yield would likely fall between 4% to 4.75%.

An Indian property owner in the UAE shared their experience, emphasizing the benefits of owning real estate there. Unlike India, Dubai imposes 0% tax on property purchases, ownership, and holdings. Rental yields can exceed 10%, particularly when leasing to commercial tenants. The regulatory body RERA ensures fair rental practices, protecting both tenants and landlords. Additionally, Dubai offers a progressive lifestyle, high safety standards, affordable vehicles, and incentives for EVs and solar energy adoption, making it an attractive investment destination.