Why Credit Card Payments Can Be Risky for Indian Property Buyers in the UAE
The UAE real estate market continues to attract strong interest from Indian investors, who consistently rank among the top foreign buyers in Dubai and other Emirates. With promising rental yields, tax advantages, and a thriving property sector, purchasing real estate in the UAE remains a sought-after opportunity.
However, a growing concern has emerged around the use of credit cards for property transactions. While it may appear to be a convenient payment option, experts warn that credit card payments can expose buyers to significant risks.
This article explores what makes credit card payments risky, why Indian buyers are more vulnerable, who has raised concerns, where the issue is most common, when this trend became noticeable, and how to avoid unnecessary pitfalls.
What makes credit card payments risky for property deals?
Credit cards are designed for retail and personal expenses, not high-value property transactions. Using them to pay for real estate can lead to hidden challenges such as:
- High transaction and processing fees.
- Currency conversion costs for Indian buyers paying in INR.
- Limited buyer protection compared to bank transfers or escrow accounts.
- Disputes with developers or banks in the event of chargebacks.
Unlike regulated payment methods, credit cards may not offer the same transparency or legal safeguards, making them a less reliable choice for property transactions.
Why are Indian buyers more affected?
Indian investors are among the largest property buyers in the UAE, particularly in Dubai. Many rely on international credit cards for overseas transactions, which exposes them to:
- Fluctuating foreign exchange rates.
- High interest charges if payments are not cleared on time.
- Restrictions in legal recourse if disputes arise.
Given the scale of investment in real estate, even minor exchange fluctuations or additional costs can significantly impact the overall purchase value.
Who is warning about this risk?
Leading property consultants in Dubai, financial analysts, and reputable news outlets such as Gulf News and Khaleej Times have reported on the risks of using credit cards for real estate purchases.
Additionally, regulatory authorities like the Real Estate Regulatory Agency (RERA) emphasize that property transactions should always be carried out through secure, traceable methods, such as bank transfers or escrow accounts. Developers in Dubai have also started limiting credit card acceptance due to concerns about potential disputes.
Where does this problem usually arise?
Credit card payments are more commonly used in partial transactions, such as off-plan booking fees or down payments. While this may appear convenient, buyers risk facing legal and financial complications later.
In established areas such as Dubai Marina, Business Bay, Jumeirah Village Circle, and Abu Dhabi’s Al Reem Island, secure methods like bank transfers, escrow accounts, or certified cheques remain the standard. These are considered far more reliable than card-based transactions.
When did this trend become noticeable?
The issue gained prominence in the past two years as demand from Indian buyers surged post-pandemic. Reports from the Dubai Land Department highlight that Indian nationals consistently rank in the top three foreign investor groups in the Dubai property market.
As transaction volumes increased, cases involving the risks of credit card payments became more visible, prompting experts to issue repeated warnings.
How can Indian buyers avoid the risk?
To ensure safe and stress-free property purchases in the UAE, experts recommend the following approaches:
- Bank transfers through authorized financial institutions, which are secure and easily traceable.
- Escrow accounts registered with the Dubai Land Department, where funds are only released upon meeting legal obligations.
- Manager’s cheques or certified cheques, which are widely accepted and provide buyers with added security.
By relying on regulated and transparent payment channels, buyers can minimize risks and safeguard their investments.
Expert Insights on the Current Market
The UAE real estate market in 2025 remains strong, with rising demand across both luxury and mid-market segments. Indian investors continue to be a driving force in this growth, particularly in Dubai’s high-demand communities.
Industry professionals consistently highlight that while the property market offers immense opportunities, safe financial practices are essential. A secure transaction process not only builds trust but also ensures long-term protection for both buyers and developers.
Key Takeaways for Indian Buyers in the UAE
- Credit card payments may seem convenient but carry hidden risks in property transactions.
- Indian buyers, as one of the largest investor groups in UAE real estate, are particularly exposed to these risks.
- Safer alternatives such as bank transfers, escrow accounts, and certified cheques should be prioritized.
- With the UAE property market growing steadily in 2025, adopting secure payment practices is critical for maximizing returns and ensuring peace of mind.
Frequently Asked Questions (FAQs)
1. Can I buy property in Dubai using a credit card?
Some developers allow partial payments via credit card, but experts strongly advise against it due to high fees and weaker buyer protection.
2. What is the safest way to transfer money for a property purchase in Dubai?
Bank transfers and escrow accounts regulated by the Dubai Land Department are the safest and most widely recommended methods.
3. Why do Indian buyers face more risks with credit card transactions?
Because they are paying in INR, Indian buyers are exposed to exchange rate fluctuations, interest charges, and higher transaction fees.
4. Are escrow accounts mandatory in Dubai?
Yes, for off-plan projects, escrow accounts are mandatory to ensure buyer protection.
5. What are the common payment methods for property in the UAE?
The most secure methods include bank transfers, escrow accounts, and certified cheques.
