Fujairah Real Estate: 5 Active Projects Pushing Growth in June 2025

Fujairah’s real estate market in June 2025 is gaining momentum within the UAE’s AED 893 billion ($243 billion) 2024 transaction landscape, with Fujairah contributing AED 2.8 billion in Q1 2025, a 25% year-on-year increase, per Square Yards UAE.

Offering 7-9% rental yields, Fujairah attracts investors with its tax-free environment (no personal income tax, 9% corporate tax per Federal Decree-Law No. 47 of 2022, and 5% VAT per Federal Decree-Law No. 8 of 2017), freehold ownership for non-residents, and natural appeal between the Hajar Mountains and Gulf of Oman.

June 2025 sees active projects driving growth, fueled by infrastructure like Fujairah International Airport’s expansion and tourism growth (764,000 guests in 2024). Below are five active projects pushing Fujairah’s real estate growth this month, their investment potential, tax incentives, and actionable steps for compliance with Federal Tax Authority (CTA) regulations.

1. Ocean Living Al-Aqah by Future Cities and Emtelak Properties (Al Aqah)

Overview: Launched September 2024 and active in June 2025, Ocean Living offers luxury villas (7,000 sq. ft.) starting at AED 2.5 million ($680,000), with a flexible escrow-based payment plan and 5% limited-time discounts. Handover is scheduled for Q4 2026. It yields 7-8%.
Investment Potential: Located in Al Aqah, near luxury hotels and diving centers, it targets UAE and GCC nationals with 5-bedroom villas featuring private pools and sea-view gardens. Fujairah’s tourism boom (3 million visitors targeted by 2025) drives 10-15% appreciation by 2030, per Windmills Group.

Tax Incentives: VAT-exempt leases save 5% (e.g., AED 12,500 on AED 250,000 rent). U.S.-UAE DTA credits offset U.S. taxes via IRS Form 1118.
Action: File IRS Form 1118, verify escrow compliance with Fujairah Municipality, engage RERA-registered agents, and retain records for CTA audits.

2. Address Fujairah Residences by Eagle Hills (Al Aqah, Dibba Al-Fujairah)

Overview: Active in June 2025, this ready-to-move project offers 1- to 3-bedroom apartments starting at AED 1.6 million ($435,200), yielding 7-9%. Part of the Address Fujairah Resort and Spa, it includes five-star amenities.
Investment Potential: Located in Sharm, 8 minutes from Fujairah International Airport, it benefits from 25% transaction growth in Al Aqah (Q1 2025) and proximity to Oman, driving 8-12% appreciation by 2030, per Square Yards UAE. High rental demand from tourists supports yields.

Tax Incentives: VAT-exempt leases save 5% (e.g., AED 8,000 on AED 160,000 rent). VAT-registered investors recover 5% input VAT on furnishings (e.g., AED 5,000 on AED 100,000).
Action: Verify Eagle Hills’ compliance with Fujairah Municipality, confirm VAT recovery eligibility, and use RERA-registered brokers.

3. Fujairah Beach Townhouse by Eagle Hills (Corniche Al Fujairah)

Overview: Active in June 2025, this ready-to-move project offers townhouses starting at AED 2 million ($544,000), yielding 6-8%. It features beachfront access and modern amenities.
Investment Potential: Corniche Al Fujairah’s pristine beaches and proximity to Fujairah Free Zone drive 8-10% appreciation by 2030, per Dxboffplan. Strong demand from families and tourists ensures 85% occupancy rates.
Tax Incentives: VAT-exempt leases save 5% (e.g., AED 10,000 on AED 200,000 rent). U.S.-UAE DTA credits offset U.S. taxes via IRS Form 1118.
Action: File IRS Form 1118, verify Eagle Hills’ compliance with Fujairah Municipality, and retain lease records for CTA audits.

4. Rawasi Naseem Al Bahr Villas by Rawasi Real Estate (Downtown Fujairah)

Overview: Active in June 2025, this ready-to-move project offers luxury villas starting at AED 2.5 million ($680,000), yielding 7-8%. It features sustainable designs and panoramic Gulf views.
Investment Potential: Downtown Fujairah’s 20% transaction growth in Q1 2025 and proximity to Fujairah Business Park drive 8-12% appreciation by 2030, per Square Yards UAE. High-net-worth buyers ensure strong rental demand.
Tax Incentives: VAT-exempt leases save 5% (e.g., AED 12,500 on AED 250,000 rent). Corporate investors deduct sustainability upgrade costs (e.g., AED 27,000 on AED 300,000 expenses).
Action: Verify Rawasi’s compliance with Fujairah Municipality, document expenses for CTA audits, and use RERA-registered brokers.

5. Al Hilal City by Al Hilal Real Estate (Sakamkam)

Overview: Active in June 2025, this ready-to-move project offers apartments and townhouses starting at AED 1.2 million ($326,400), yielding 7-9%. It features modern amenities and community-focused infrastructure.
Investment Potential: Sakamkam’s 7+ active projects and Fujairah’s infrastructure upgrades (e.g., Hamad bin Abdullah Road) drive 8-10% appreciation by 2030, per Square Yards UAE. Affordable pricing attracts expatriates and investors.
Tax Incentives: VAT-exempt leases save 5% (e.g., AED 6,000 on AED 120,000 rent). Small investors qualify for 0% corporate tax until 2026.
Action: Verify Al Hilal’s RERA registration, confirm Small Business Relief eligibility, and retain records for CTA audits.

Why These Projects Matter

These projects align with Fujairah’s AED 40 billion project pipeline in 2025, driven by a 22% population increase to 280,000, tourism growth, and infrastructure like the Fujairah Seaport expansion and ADNOC’s AED 4.4 billion crude oil storage facility. Freehold ownership, 69% off-plan sales in Q1 2025, and eco-friendly designs enhance ROI potential, per Square Yards UAE. Fujairah’s affordability compared to Dubai (40% lower prices) and proximity to natural attractions make it a compelling investment hub.

Tax Tools for American Investors

• U.S.-UAE DTA: Credit UAE taxes against U.S. tax liability via IRS Form 1118, preserving 10-15% returns.
• Zakat for Muslim Investors: Pay 2.5% Zakat on rental income (e.g., AED 2,000 on AED 80,000 rent), not property value. Consult Islamic scholars.
• VAT Recovery: Recover 5% input VAT on costs like furnishings (e.g., AED 25,000 on AED 500,000).

Market Outlook and Challenges

Fujairah forecasts 3-5% price growth in 2026, with Al Aqah and Sakamkam at 8-12%, per Dxboffplan. Oversupply risks (moderate, with 15,000 units by 2027) and potential 5-10% corrections by 2026 loom, per JLL. Stricter AML/KYC rules for transactions above AED 5 million 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.

Conclusion

Ocean Living Al-Aqah, Address Fujairah Residences, Fujairah Beach Townhouse, Rawasi Naseem Al Bahr Villas, and Al Hilal City, active in June 2025, offer 6-9% yields and 8-15% appreciation potential. Leveraging Fujairah’s affordability, infrastructure, and tourism growth, these projects provide American investors with high ROI opportunities. Compliance with RERA and CTA regulations ensures success in Fujairah’s emerging market. Fujairah Real Estate

read more: UAE Property: 7 June Insights Every First-Time Buyer Should Know in 2025