Dubai Real Estate: 5 Off-Plan Projects Gaining Attention This Month

REAL ESTATE2 days ago

Off-Plan Projects: Dubai’s real estate market in June 2025 is thriving, contributing to the UAE’s AED 893 billion ($243 billion) in 2024 transactions, with May 2025 recording AED 66.8 billion ($18.2 billion) across 18,700 deals. Off-plan properties, accounting for 60% of 2024 sales, dominate due to flexible payment plans, 7-11% rental yields, and 15-30% capital appreciation by handover.

With no personal income tax, 9% corporate tax (Federal Decree-Law No. 47 of 2022), and 5% VAT (Federal Decree-Law No. 8 of 2017), Dubai attracts 45% foreign buyer demand, including Americans, in freehold areas like Dubai South and Jumeirah Village Circle (JVC).

Below are five off-plan projects launched in June 2025 gaining investor attention, offering tax incentives and compliance with Federal Tax Authority (CTA, renamed from FTA in 2024) regulations.

1. Sidr Residences by Expo City Dubai (Dubai South)

Overview: Launched June 11, 2025, Sidr Residences offers 1- to 4-bedroom apartments starting at AED 1.88 million ($511,600), with a 70/30 payment plan and Q2 2027 handover. Located near Al Maktoum International Airport (10 minutes), it features sustainable designs, smart home tech, and yields 6-8%.
Investor Appeal: High demand from families and proximity to Expo City drive 15-20% appreciation by 2030. Tokenized fractional ownership via Dubai Land Department’s (DLD) platform lowers entry barriers to AED 2,000 ($540).
Tax Incentives: VAT-exempt long-term leases save 5% (e.g., AED 6,000 on AED 120,000 rent). Individual investors avoid 9% corporate tax on rental income.
Action: Verify tokenization compliance with DLD, engage RERA-registered agents, and retain seven-year records for CTA audits.

2. The Cube Residences by AMWAJ Development (Wadi Al Safa, Dubai)

Overview: Launched in June 2025, The Cube Residences offers 1- to 3-bedroom apartments starting at AED 1 million ($272,000), with a 60/40 payment plan and Q3 2027 handover. Featuring modern architecture and green amenities, it yields 7-9%, 20 minutes from Dubai Marina.
Investor Appeal: Affordable pricing and connectivity to business hubs attract young professionals. Blockchain-based transactions ensure transparency, with 25% faster deal closures.
Tax Incentives: Secondary sales are VAT-exempt, saving 5% (AED 50,000 on AED 1 million). VAT-registered investors recover 5% input VAT on furnishing costs (e.g., AED 5,000 on AED 100,000).
Action: Use DLD’s blockchain platform, confirm VAT recovery eligibility, and consult CTA advisors.

3. California Residences by Infracorp (Wadi Al Safa, Dubai)

Overview: Launched in June 2025, California Residences offers 1,000+ apartments and townhouses starting at AED 800,000 ($217,600), with a 50/50 payment plan and Q2 2028 handover. With community-focused amenities, it yields 6-8%, 35 minutes from Dubai International Airport.
Investor Appeal: Sustainable designs and affordability drive 15% appreciation by 2030, appealing to families and mid-income investors in Dubai’s growing suburbs.
Tax Incentives: VAT-exempt leases save 5% (e.g., AED 4,000 on AED 80,000 rent). Small investors (revenue below AED 3 million) qualify for 0% corporate tax until 2026.
Action: Verify developer credentials with DLD, confirm Small Business Relief eligibility, and maintain records for CTA audits.

4. Samana Ocean Views Interiors by Elie Saab (Dubai Maritime City)

Overview: Launched in June 2025, this Samana Developers project offers luxury apartments starting at AED 1.5 million ($408,000), with a 50/50 payment plan and Q3 2028 handover. With branded interiors and waterfront views, it yields 6-8%, 15 minutes from DIFC.
Investor Appeal: Targets high-net-worth buyers, with 86% foreign sales and 20% annual price growth in Dubai’s luxury market.
Tax Incentives: U.S.-UAE DTA credits offset U.S. taxes via IRS Form 1118. VAT-exempt leases save 5% (e.g., AED 7,500 on AED 150,000 rent).
Action: File IRS Form 1118, ensure AML/KYC compliance for high-value deals, and use RERA-registered brokers.

5. Jumeirah Residences Emirates Towers by Meraas (Sheikh Zayed Road, Dubai)

Overview: Launched in June 2025, this Meraas-Jumeirah collaboration offers premium apartments starting at AED 2 million ($544,000), with a 60/40 payment plan and Q2 2028 handover. Near DIFC, it yields 5-7% with strong resale demand.
Investor Appeal: Appeals to professionals seeking central locations, with 10-15% appreciation by 2030 due to proximity to business hubs.
Tax Incentives: VAT-exempt leases save 5% (e.g., AED 10,000 on AED 200,000 rent). Corporate tax deductions apply for management fees (e.g., AED 9,000 on AED 100,000 expenses).
Action: Engage RERA agents, verify transaction compliance with DLD, and consult CTA advisors for deductions.

Why These Projects Matter

These projects align with Dubai’s 5-20% price growth in 2024, driven by 19 million annual visitors, a 5% population increase to 3.8 million, and infrastructure like Al Maktoum Airport’s AED 128 billion ($35 billion) expansion. Off-plan sales dominate (63% of 2024 transactions), offering Golden Visa eligibility (AED 2 million) and high yields compared to global markets. PropTech, including blockchain and tokenization, enhances transparency, while sustainable designs cater to eco-conscious buyers.

Tax Tools for American Investors

U.S.-UAE DTA: Corporate investors credit UAE taxes against U.S. tax liability via IRS Form 1118, preserving 10-15% returns.
Zakat for Muslim Investors: Muslim Americans pay 2.5% Zakat on rental income (e.g., AED 2,000 on AED 80,000 rent), not property value. Consult Islamic scholars for compliance.
VAT Recovery: VAT-registered investors recover 5% input VAT on costs like fit-outs (e.g., AED 25,000 on AED 500,000).

Market Outlook and Challenges

June 2025 projects 5-8% price growth, with Dubai South at 15-25%, but oversupply risks (76,000 units in 2025) and a potential 10-15% correction by 2026 loom. Stricter AML/KYC rules and the DMTT’s 15% rate for multinationals increase compliance costs. Non-compliance with CTA filings (nine-month corporate tax, 28-day VAT deadlines) risks penalties up to AED 10,000. RERA-registered agents and CTA consultants are essential.

Conclusion

Sidr Residences, The Cube Residences, California Residences, Samana Ocean Views, and Jumeirah Residences Emirates Towers are five off-plan projects making headlines in June 2025. Offering 5-9% yields, VAT exemptions, and DTA credits, they provide American investors with high ROI potential through strategic planning and compliance, reinforcing Dubai’s status as a global real estate hub. Off-Plan project