6 Strategic Freehold Areas Enticing Foreign Investors in 2025

REAL ESTATE1 week ago

Foreign Investors : Ajman’s real estate market surged in 2024, with transactions reaching AED 20.5 billion ($5.6 billion), up 21%, and rental deals hitting AED 4.929 billion, a 50.13% rise from 2022, per Ajman Municipality and Planning Department. Q1 2025 saw AED 5.54 billion in transactions, a 41% rental value increase to AED 1.355 billion, and rental yields climbing to 10%, outpacing Dubai (6.5%) and Sharjah (7.5%).

Offering freehold ownership to non-GCC nationals since 2008, Ajman’s affordability, 30-minute proximity to Dubai, and no capital gains tax (CGT) attracted AED 6.048 billion in foreign investment in H1 2024, up 88%. With 138,360 lease contracts and a 2% registration fee, Ajman lures investors from 75 countries. This article explores six strategic freehold areas driving foreign investment in 2025, with U.S. tax considerations, without external links.

Why Freehold Zones Attract Foreign Investors?

Ajman’s freehold zones, backed by Ajman Vision 2030, offer full ownership of land and property, unlike 99-year leaseholds, ensuring long-term security. Infrastructure upgrades, like the Etihad Rail and Sheikh Mohammed Bin Zayed Road, boost connectivity, while a 49% rental growth in H1 2024 signals demand. Benefits include:

High ROI: 9–10% apartment yields; 6–8% villas.
Capital Appreciation: 6–48% per-square-foot apartment price growth in 2024.
Tax Efficiency: No CGT; 9% Corporate Tax (CT) above AED 375,000 ($102,000) offset by IRS Form 1116 credits.
Visa Eligibility: AED 750,000 ($204,000) investments qualify for UAE residency visas.

Below are six freehold areas enticing foreign investors in 2025.

6 Strategic Freehold Areas Enticing Foreign Investors in 2025

1. Al Nuaimiya: High-Yield Apartment Hub

Al Nuaimiya, near Al Rashidiya and Ajman Industrial, led rental demand with a 21.43% rent increase in H1 2024, offering 10.93% ROI. Studios rent at AED 23,000, 1-bedroom units at AED 31,000 annually, per dubizzle. Proximity to schools and malls drives 15% occupancy growth.

Impact: Supports 7–9% price growth; attracts families and professionals.
U.S. Tax Consideration: Rental income on IRS Form 1040, Schedule E; assets over $50,000 on Form 8938.
Action: Invest in GJ Properties’ Biltmore Residences; verify yields via Ajman Municipality.

2. Ajman Downtown: Affordable Investment Hotspot

Ajman Downtown’s freehold apartments, starting at AED 254,640, delivered 10.93% ROI in 2024, with 25–35% rent hikes for 1–2-bedroom units, per dubizzle. Investor Ali Akbar earned AED 40,000 profit reselling in City Towers, per improperties.ae.

Impact: Draws 20% more foreign buyers; supports 9–10% yields.
U.S. Tax Consideration: Gains deferred via IRS Section 1031 on Form 8824; report assets on Form 8938.
Action: Buy in Ajman One Phase 2; validate ROI with AjmanRE registration.

3. Al Zorah: Luxury Coastal Appeal

Al Zorah’s freehold luxury properties, like Gold Crest Dream (AED 6.92 million in 2024 sales), yield 7–9%, per Ajman’s Department of Land and Real Estate Regulation. Golf courses and marinas, plus the 2024 Al Zorah Cultural District, boost high-end demand by 10%.

Impact: Drives 6–8% capital growth; attracts high-net-worth investors.
U.S. Tax Consideration: Depreciation on Form 4562; rental income on Schedule E.
Action: Invest in Al Zorah’s Lavender Tower; confirm status with developers.

4. Al Rashidiya: Family-Friendly Villas

Al Rashidiya’s freehold villas saw 50% rent increases in 2024, with 3-bedroom units at AED 61,000 yearly, and apartments up 42.86% to AED 40,000, per Bayut. Family amenities drive 6–8% yields and 5–10% value growth.

Impact: Enhances villa demand; supports long-term tenancy.
U.S. Tax Consideration: Short-term rentals on Schedule E; capital gains on Form 8949.
Action: Target villas via Ajman Properties; verify amenities with developers.

5. Emirates City: Emerging Freehold Zone

Emirates City, a 92-tower freehold project in Al Ameerah, offers apartments from AED 166,000 (1-bedroom) to AED 216,000 (2-bedroom), with 6–8% yields, per gjproperties.ae. Its 5 million square feet and amenities rank it sixth for rentals.

Impact: Attracts budget investors; supports 5–7% price growth.
U.S. Tax Consideration: Report assets on Form 8938; accounts over $10,000 on FinCEN Form 114.
Action: Buy in Emirates City; register with Ajman Land Department.

6. Al Jurf: Mixed-Use Investment Potential

Al Jurf’s freehold mixed-use properties, with AED 70 million in 2024 industrial mortgages, saw 27.59% apartment rent growth to AED 37,000 annually, yielding 7–9%, per dubizzle. Connectivity to Dubai fuels 12% occupancy rise.

Impact: Boosts commercial and residential demand; drives 5–7% value growth.
U.S. Tax Consideration: Commercial income on Schedule E; CT credits on Form 1116.
Action: Invest in GJ Properties’ Ajman Creek Tower; verify infrastructure via Ajman Municipality.

Key Considerations for U.S. Investors

Risks:
Oversupply: 1,800 new units in 2025 may soften non-prime yields by 0.5–1%, per Cushman & Wakefield.
Volatility: 1–2% price corrections possible in secondary areas in Q2 2025.
Compliance Costs: Advisors add 0.5–1% to costs, offset by yields.
Tax Compliance: UAE’s 5% VAT on commercial properties and 9% CT apply above AED 375,000. IRS requires Form 1040, Form 1116, Form 8938, Form 8824, Form 4562, and FinCEN Form 114.
Regulatory Compliance: AjmanRE mandates KYC; AML fines up to AED 500,000. Register title deeds with Ajman Land Department.
Currency Stability: AED pegged at 1 USD = 3.67 minimizes exchange risk.

Conclusion

Ajman’s 2025 real estate market, driven by freehold zones like Al Nuaimiya, Ajman Downtown, Al Zorah, Al Rashidiya, Emirates City, and Al Jurf, offers 9–10% yields and 6–48% capital growth. With no CGT, residency visa eligibility, and IRS credits, Ajman’s $5.6 billion market aligns with Vision 2030, attracting U.S. investors. Partnering with GJ Properties, Ajman Properties, or Al Zorah developers, and using Ajman Municipality’s tools, ensures high returns in this dynamic emirate. foreign investors