UAE Expats Face Higher Costs, Smaller Homes for Indian Property

Indian expats in the UAE looking to purchase property back home should be aware of "loading," the extra space they're paying for that isn't part of their actual living area. Data from ANAROCK reveals that average loading in top Indian cities has risen to 40% in early 2025, up from 31% in 2019. This means only 60% of the space you pay for is usable, with the rest allocated to common areas like lobbies and amenities.

The difference between the super built-up area (what you're charged for) and the carpet area (usable space) is significant. For instance, a 1,000 sq. ft apartment with 40% loading provides only 600 sq. ft of livable space. While amenities like gyms and stylish lobbies can increase property value, they also reduce the actual living space. Cities like Mumbai have the highest loading, while Chennai offers better value with the lowest average loading at 36%.

Despite increased loading, there's a silver lining: India's central bank has reduced the repo rate to 5.5%, making home loans cheaper. This, along with a cut in the cash reserve ratio, is expected to boost liquidity and attract buyers, particularly in the affordable and mid-income segments. This is beneficial for UAE-based buyers and NRIs looking for deals.

When investing in Indian property from the UAE, consider the usable space, compare cities based on loading, and leverage lower interest rates. Focus on affordable or mid-income homes for better price appreciation and lower risk. Smart investors should prioritize the actual usable space over the overall size.