UAE Property Market: 6 Coastal Locations Driving Holiday Home Demand

REAL ESTATE1 month ago

The UAE property market continues to evolve, with one of the fastest-growing segments being holiday homes—especially in prime coastal locations. With rising interest from international tourists, digital nomads, and short-term rental investors, coastal communities across the Emirates are experiencing high demand for furnished, waterfront properties that promise scenic views and strong rental yields.

Whether for personal leisure or investment, here are six coastal destinations in the UAE that are fueling the growth of the holiday home sector in 2025:

1. Palm Jumeirah, Dubai – Icon of Luxury Holiday Homes

Why It Stands Out:
Palm Jumeirah remains one of the most iconic destinations for holidaymakers. Its crescent-shaped archipelago is home to premium resorts, beach clubs, and branded residences such as Atlantis The Royal and FIVE Palm Jumeirah.

Holiday Home Appeal:
Short-term rental rates here are among the highest in the UAE, making it a lucrative location for investors. Many properties come with private beaches, infinity pools, and direct access to the sea—ideal for luxury-seeking tourists.

Investment Insight:
Palm Jumeirah recorded rental yields of around 6-7% in 2024, with capital appreciation supported by limited supply and global brand interest.

2. Al Marjan Island, Ras Al Khaimah – The Next Coastal Hotspot

Why It Stands Out:
Al Marjan Island is rapidly transforming into a prime hospitality destination, especially with the upcoming Wynn Al Marjan Island Resort, which is set to be the UAE’s first casino resort. This has placed the island on the radar of short-term rental investors globally.

Holiday Home Appeal:
The island offers a mix of mid-range and luxury apartments and villas with panoramic sea views. The relaxed pace, pristine beaches, and growing nightlife options make it attractive to staycationers and international tourists alike.

Investment Insight:
Properties here are significantly more affordable than Dubai, offering high potential for capital gains and consistent tourist demand.

3. Saadiyat Island, Abu Dhabi – Art, Culture, and Coastal Luxury

Why It Stands Out:
Saadiyat Island combines serene beach living with cultural richness. Home to the Louvre Abu Dhabi, high-end resorts, and white sandy beaches, it’s a preferred destination for high-spending tourists.

Holiday Home Appeal:
Villas and apartments in this area offer privacy, spacious layouts, and proximity to art galleries, museums, and exclusive beach clubs. It caters to affluent travelers seeking a blend of luxury and culture.

Investment Insight:
High occupancy rates for short-term rentals and stable capital appreciation make Saadiyat Island a top coastal investment pick in the capital.

4. Jumeirah Beach Residence (JBR), Dubai – Tourists’ Favourite Seaside Strip

Why It Stands Out:
JBR remains one of Dubai’s busiest beachfront promenades. With endless restaurants, shopping outlets, water sports, and cinemas, it’s a top choice for short-term renters seeking both entertainment and beach access.

Holiday Home Appeal:
JBR apartments offer direct sea views, access to The Beach at JBR, and walkability to popular destinations like Bluewaters Island. It’s ideal for investors looking for strong year-round rental income.

Investment Insight:
Properties in JBR offer high occupancy levels due to the area’s tourist popularity. Average short-term rental returns exceed 7%, especially during peak seasons.

5. Al Hamra Village, Ras Al Khaimah – Affordable Coastal Living

Why It Stands Out:
Al Hamra Village offers a peaceful coastal retreat with golf courses, marinas, and luxury hotels such as Waldorf Astoria. It’s particularly popular among European tourists and UAE residents seeking weekend escapes.

Holiday Home Appeal:
The community features sea-facing apartments, beachfront villas, and townhouses—all in a walkable, gated environment. Investors benefit from more competitive pricing compared to Dubai while tapping into growing tourism.

Investment Insight:
Ras Al Khaimah’s positioning as a rising tourist hub and tax-free investment zone makes this community a hotspot for budget-friendly holiday home purchases.

6. Mina Zayed Waterfront, Abu Dhabi – Urban Marina Appeal

Why It Stands Out:
Part of the capital’s mega redevelopment initiative, the Mina Zayed waterfront area is transforming into a vibrant lifestyle destination. It will include a mix of restaurants, markets, art spaces, and residences overlooking the marina.

Holiday Home Appeal:
As the area grows, it’s expected to attract both residents and tourists seeking centrally located, modern seafront rentals in Abu Dhabi. Its proximity to Saadiyat and downtown adds value.

Investment Insight:
Early investors stand to benefit from competitive prices and capital appreciation as infrastructure is completed in phases through 2025–2026.

Why Coastal Properties Are Driving the UAE Holiday Home Boom

Several key trends are boosting demand for coastal holiday homes in the UAE:

Rising Tourism: With over 20 million visitors to Dubai in 2024 alone and strong campaigns from Visit UAE, holiday homes are seeing consistent booking rates.
Short-Term Rental Platforms: Increased adoption of platforms like Airbnb, Booking.com, and UAE-focused holiday rental agencies is making it easier for owners to monetize their properties.
Golden Visa Incentives: Investors purchasing properties valued at AED 2 million or more can qualify for long-term UAE residency, further encouraging international buyers.
High Yields & No Property Taxes: With rental yields of up to 8% and no property income taxes for individuals, the UAE stands out globally as a real estate investment destination.

Conclusion

From the iconic Palm Jumeirah to the up-and-coming Mina Zayed waterfront, the UAE’s coastal property market is flourishing. Investors are drawn not just by the rental returns, but by the lifestyle, infrastructure, and global connectivity the Emirates offer.

As 2025 progresses, coastal communities in Dubai, Abu Dhabi, and Ras Al Khaimah are expected to lead the growth in holiday home demand. Whether you’re looking for investment returns, a personal getaway, or a mix of both, the UAE’s waterfront neighborhoods offer a world-class opportunity. Property Market Coastal Locations