Yields are roughly half of Dubai's
3–4.5% gross for Indian residential versus 6.5–7% for Dubai apartments. Before tax, before currency, before liquidity — the income case is simply weaker.
Market research
India
Focus: Bengaluru / Mumbai / Hyderabad. Research only — CoreSpaces is not licensed to broker here.
Bengaluru / Mumbai / Hyderabad · Gross yield 3–4.5%
This market exists on this site primarily as a COMPARISON for NRIs — the buyers most likely to be weighing a Dubai purchase against a Bengaluru, Mumbai or Hyderabad one. The question 'should I buy in India or Dubai?' is the single most common question in this corridor, and it deserves an honest answer rather than a Dubai sales pitch.
Where India wins
India beats Dubai on three things that matter and are rarely stated plainly: capital appreciation potential (22–28% in premium Hyderabad corridors over 2022–2025, driven by real demographic and economic growth rather than a construction cycle), financing cost (NRI loans from ~7.10% versus 6.5–8.5% for UAE non-residents), and utility — an Indian property can house your parents, serve as a retirement base, and anchor a family that a Dubai investment flat cannot. India loses decisively on income (3–4.5% yield versus 6.5–7%), on tax (30% tenant TDS versus zero), on liquidity (6–12 months to sell versus weeks), and on currency (3–4% annual rupee depreciation quietly eating the gain). The honest framing many NRIs need to hear: buy in India for the family and the appreciation; buy in Dubai for the cash flow and the tax. They are not competing for the same slot in a portfolio.
Foreign ownership
NRIs and OCI/PIO holders may buy freely; foreign nationals generally may notas of 2026-06 · source
Under FEMA, NRIs and OCI cardholders can purchase residential and commercial property in India with no limit on the number of properties. They CANNOT buy agricultural land, plantation property, or farmhouses. Foreign nationals of non-Indian origin who are not resident in India generally cannot acquire immovable property without RBI approval. Purchase must be funded through NRE/NRO accounts or inward foreign remittance. Remote purchase via a notarised and apostilled Power of Attorney is standard practice.
Stamp duty — set by STATE, varies sharply
4%–7% (up to 10% in some states)as of 2026-07 · source
Mumbai/Maharashtra: 5% (male) / 4% (female). Bangalore/Karnataka: 5%. Delhi: 6%. Chennai/Tamil Nadu: 7%. Gurgaon/Haryana: 7% (male) / 5% (female). Rajasthan: up to 10%. The gender-based differential is real and can save several lakh — registering in a female family member's name is a legitimate and commonly used planning step.
Registration charges
1% of transaction valueas of 2026-07 · source
Karnataka caps registration at ₹15,000 regardless of property value — so a ₹1 crore Bengaluru flat pays ₹50,000 stamp duty (5%) + ₹15,000 registration, materially cheaper to register than Maharashtra or Delhi where no such cap applies to urban transactions.
GST — applies to UNDER-CONSTRUCTION property only
5% (affordable) / 12% (other); 0% on ready or resale propertyas of 2026-06 · source
This is one of the most consequential and least understood costs. An under-construction flat attracts GST; a completed/ready property with an occupancy certificate, or any resale property, attracts NONE. On a ₹1 crore purchase, that is a ₹5–12 lakh difference driven purely by construction status.
Total transaction cost
6%–8% for ready/resale property; 11%–19% for under-constructionas of 2026-06 · source
Ready/resale: stamp duty (4–7%) + registration (1%) + legal/brokerage. Under-construction adds 5–12% GST on top. The construction-status decision is worth more than the city decision in cost terms.
Gross yield range
3%–4.5%as of 2026-04 · sourceTHE defining weakness of Indian residential property as an income asset. On-the-ground sources consistently report 3–4.5% gross for residential — Bengaluru tech-corridor apartments 'top 3.5%', Hyderabad's Gachibowli/Kokapet corridor 3.5–4.5%. This is roughly HALF of Dubai's 6.5–7% apartment average. Commercial property and REITs are a different story (6–10%).
Yield data disagreement
Global Property Guide reports a 5.16% Indian average gross yield (Q2 2026), which is materially higher than the 3–4.5% consistently cited by Indian developers, brokers and NRI advisory firms. The gap likely reflects sample composition (GPG uses median list prices and asking rents in major cities). For decision-making, the 3–4.5% range from on-the-ground Indian sources is the more conservative and, in our reading, the more realistic figure for a typical NRI residential purchase.
as of 2026-07 · source
Rental income tax
30% TDS deducted by the tenant, plus tax at slab ratesas of 2026-02 · source
For an NRI landlord, the TENANT is legally required to deduct 30% TDS on rental payments and deposit it with the government. The NRI can claim a 30% standard deduction for maintenance and repairs against gross rent, then pays tax at applicable slab rates on the balance, filing an Indian ITR and claiming credit for the TDS. DTAA relief may apply depending on the country of residence.
Capital gains tax
12.5% LTCG without indexation (held >24 months); slab rates for STCGas of 2026-04 · source
Long-term capital gains (property held over 24 months) are taxed at 12.5% without indexation. For properties bought before 23 July 2024, the seller may choose between 12.5% without indexation or 20% with indexation, whichever is lower. Short-term gains (under 24 months) are taxed at applicable slab rates. A 4% health and education cess applies on top, with surcharge if total Indian income exceeds ₹50 lakh.
Annual property tax
Municipal property tax — varies by city, typically modestas of 2026-06 · source
Levied by local municipal corporations on annual rateable/capital value. Rates and methodology vary by city. Society/maintenance charges (typically ₹1,000–5,000/month) are usually the larger recurring cost.
Residency pathway
Not applicable — NRIs are already Indian citizens or OCI holdersas of 2026-07 · source
Property purchase confers no immigration benefit; it is not relevant to this market's investment case.
NRI mortgage
Available — from roughly 7.10% p.a.as of 2026-06 · source
NRI home loans start around 7.10% for borrowers with a 750+ credit history and stable foreign-currency income. LTV up to 90% for loans up to ₹30 lakh and 80% up to ₹75 lakh. Tenure caps at 20 years. EMI must flow from an NRE or NRO account. Note this is materially cheaper than UAE non-resident mortgage rates of 6.5–8.5%... but the asset it finances yields half as much.
Repatriation
Up to USD 1,000,000 per financial year from an NRO accountas of 2026-04 · source
NRIs may repatriate up to USD 1 million per financial year from NRO accounts, which includes property sale proceeds. If the property was originally purchased with NRE funds or foreign inward remittance, the PRINCIPAL amount can be repatriated without this limit. Form 15CA and Form 15CB (from a chartered accountant) are required before any repatriation.
Key risks
What can go wrong
Rupee depreciation quietly erodes returns for foreign-currency earners
The rupee has historically depreciated roughly 3–4% per year against the USD. For an NRI earning in AED (pegged to USD), a rupee-denominated capital gain can be substantially or entirely illusory in home-currency terms. This is the single most under-modelled factor in the NRI-buys-in-India decision.
Liquidity is poor
The average time to sell a property in Indian metros is 6–12 months; 18–24 months in slower markets. Dubai's secondary market is materially more liquid. If capital may be needed back quickly, this matters enormously.
The 30% tenant TDS and Section 195 sale withholding create real friction
Tenants must deduct 30% TDS on rent to an NRI. Buyers must deduct ~13–14% TDS on purchase from an NRI. Both create administrative friction that reduces the pool of willing tenants and buyers. The Budget 2026 TAN removal (effective October 2026) helps on the sale side.
Remote management is genuinely hard
Without trusted family on the ground, managing an Indian rental from abroad is materially more difficult than managing a Dubai one, where professional property management is a mature, standardised industry.
Research only
CoreSpaces is not licensed to broker in India
CoreSpaces is not licensed to broker or advise on property transactions in India, and does not provide Indian tax, FEMA or legal advice. This page is research only. Indian real estate is regulated at state level under RERA. Engage a RERA-registered agent, an Indian property lawyer, and a chartered accountant.