Bluewaters Island: 6 Real Estate Launches With Minimal Tax Exposure Risks in 2025

REAL ESTATE1 month ago

Bluewaters Island, a 400-meter man-made island off Jumeirah Beach Residence in Dubai’s AED 761B real estate market in 2024 (226,000 transactions, 36% year-on-year growth), offers luxury apartments (AED 2.56M–8M), penthouses (AED 15M–30M), and townhouses (AED 20M–96M) with 7–9% ROI and 15–20% appreciation by 2028.

Developed by Meraas Holding at a cost of AED 6–8B, it features Ain Dubai, the world’s tallest observation wheel, and recorded AED 9.5B in 2024 sales, driven by proximity to Dubai Marina, JBR, and tourism (18.7M visitors in 2024). The UAE’s tax regime zero personal income tax, zero capital gains tax, zero inheritance tax, VAT exemptions on residential properties, and Golden Visa eligibility (AED 2M+) minimizes tax exposure.

Six real estate launches in 2025 Bluewaters Bay Towers A and B, Bluewaters Residences Phase 2, La Voile, Bluewaters Wharf, Rixos Residences, and Caesars Palace Residences offer flexible payment plans and high rental yields. Supported by 95% absorption, RERA escrow protections, and a 6.2% GDP growth forecast for 2025, these projects attract high-net-worth investors. This guide details each launch, its minimal tax exposure risks, and investment potential, backed by 2024–2025 data.

1. Bluewaters Bay Tower A

Launch Details: Developed by Meraas, offering 1–4-bedroom apartments (AED 2.56M–8M, 800–3,050 sqft) with Miami-inspired designs, floor-to-ceiling glass, and views of Ain Dubai. Handover Q2 2027 with a 60/40 payment plan.
Minimal Tax Exposure Risks: Zero-rated first supply avoids 5% VAT (saving AED 128K–400K). Zero personal income tax on rentals (AED 180K–350K/year), zero capital gains tax on profits (e.g., AED 640K–2M by 2028), and zero inheritance tax. Input VAT recovery on maintenance (AED 10K–20K) for FTA-registered buyers. No corporate tax for personal ownership.
Investment Potential: 7–9% ROI, with 85% occupancy driven by tourism and proximity to JBR. AED 1.5B in 2024 off-plan sales, with 15–20% appreciation by 2028 (e.g., AED 2.56M apartment to AED 2.94M–3.07M). Eligible for 10-year Golden Visa.
Impact: Tax savings (AED 138K–420K) and deferred 2% RETT (AED 15.4K–48K) minimize exposure, ideal for investors seeking high-yield rentals.

2. Bluewaters Bay Tower B

Launch Details: A twin tower by Meraas with 1–3-bedroom apartments (AED 2.8M–7M, 800–2,000 sqft) and amenities like pools and meditation facilities. Handover Q2 2027 with a 1% monthly payment plan.
Minimal Tax Exposure Risks: Zero-rated first supply avoids VAT (saving AED 140K–350K). Zero personal income tax on rentals (AED 180K–300K/year), zero capital gains tax on profits (e.g., AED 700K–1.75M by 2028), and zero inheritance tax. VAT recovery on eco-upgrades (AED 10K–18K). No corporate tax for personal ownership.
Investment Potential: 7–8% ROI, with 80% occupancy due to scenic promenade access. AED 1.2B in 2024 sales, with 15–20% appreciation by 2028 (e.g., AED 2.8M apartment to AED 3.22M–3.36M). Golden Visa eligible.
Impact: Tax savings (AED 150K–368K) and flexible payments (deferred RETT AED 16.8K–42K) reduce exposure, appealing to short-term rental investors.

3. Bluewaters Residences Phase 2

Launch Details: An extension of Meraas’ original residences, offering 2–4-bedroom apartments (AED 3M–8M, 1,225–2,850 sqft) and four penthouses (AED 15M–30M). Features smart home systems and Wharf access. Handover Q4 2025 with a 50/50 payment plan.
Minimal Tax Exposure Risks: Zero-rated first supply avoids VAT (saving AED 150K–1.5M). Zero personal income tax on rentals (AED 230K–1M/year), zero capital gains tax on profits (e.g., AED 750K–7.5M by 2028), and zero inheritance tax. VAT recovery on maintenance (AED 15K–50K). No corporate tax for personal ownership.
Investment Potential: 7–9% ROI, with 85% occupancy driven by Ain Dubai views. AED 1.8B in 2024 sales, with 15–20% appreciation by 2028 (e.g., AED 3M apartment to AED 3.45M–3.6M). Golden Visa eligible.
Impact: Tax savings (AED 165K–1.55M) and deferred RETT (AED 18K–180K) minimize exposure, ideal for luxury investors targeting high-net-worth tenants.

4. La Voile

Launch Details: A boutique Meraas project with 1–3-bedroom apartments (AED 2.8M–6M, 800–2,000 sqft) and premium finishes. Near Banyan Tree Dubai. Handover Q3 2025 with a 60/40 payment plan.
Minimal Tax Exposure Risks: Zero-rated first supply avoids VAT (saving AED 140K–300K). Zero personal income tax on rentals (AED 180K–300K/year), zero capital gains tax on profits (e.g., AED 700K–1.5M by 2028), and zero inheritance tax. VAT recovery on amenities (AED 10K–15K). No corporate tax for personal ownership.
Investment Potential: 7–8% ROI, with 80% occupancy due to spa and dining access. AED 600M in 2024 sales, with 15–18% appreciation by 2028 (e.g., AED 2.8M apartment to AED 3.22M–3.3M). Golden Visa eligible.
Impact: Tax savings (AED 150K–315K) and deferred RETT (AED 16.8K–36K) reduce exposure, appealing to investors seeking boutique luxury.

5. Bluewaters Wharf

Launch Details: A mixed-use development by Meraas with 2–4-bedroom townhouses (AED 20M–40M, 3,000–5,000 sqft) and retail spaces. Features waterfront dining and promenade access. Handover Q3 2026 with a 50/50 payment plan.
Minimal Tax Exposure Risks: Zero-rated first supply avoids VAT (saving AED 1M–2M). Zero personal income tax on rentals (AED 600K–1.2M/year), zero capital gains tax on profits (e.g., AED 5M–10M by 2028), and zero inheritance tax. VAT recovery on maintenance (AED 20K–40K). No corporate tax for personal ownership.
Investment Potential: 6–7% ROI, with 85% occupancy driven by tourism (18.7M visitors in 2024). AED 1B in 2024 sales, with 15–20% appreciation by 2028 (e.g., AED 20M townhouse to AED 23M–24M). Golden Visa eligible.
Impact: Tax savings (AED 1.02M–2.04M) and deferred RETT (AED 120K–240K) minimize exposure, ideal for ultra-luxury investors.

6. Rixos Residences

Launch Details: A branded project with 1–4-bedroom apartments (AED 3M–8M, 1,000–3,000 sqft) and luxury amenities like beach clubs. Handover Q4 2026 with a 1% monthly payment plan.
Minimal Tax Exposure Risks: Zero-rated first supply avoids VAT (saving AED 150K–400K). Zero personal income tax on rentals (AED 200K–350K/year), zero capital gains tax on profits (e.g., AED 750K–2M by 2028), and zero inheritance tax. VAT recovery on eco-features (AED 10K–20K). No corporate tax for personal ownership.
Investment Potential: 7–9% ROI, with 80% occupancy due to branded appeal. AED 800M in 2024 sales, with 15–20% appreciation by 2028 (e.g., AED 3M apartment to AED 3.45M–3.6M). Golden Visa eligible.
Impact: Tax savings (AED 160K–420K) and flexible payments (deferred RETT AED 18K–48K) reduce exposure, appealing to investors targeting high-end tenants.

Market Trends and Outlook for 2025

Yields and Appreciation: Bluewaters Island offers 7–9% ROI (apartments 7–9%, townhouses 6–7%) and 15–20% appreciation, driven by AED 9.5B in 2024 sales and 18% rental growth. Off-plan sales (70% of 154 transactions) dominate, with 2,500 units expected in 2025–2027. Prices rose 15% in 2024 (AED 1,482 psf average).
Tax Environment: Zero personal income, capital gains, and inheritance taxes, plus VAT exemptions, ensure minimal tax exposure. The 4% RETT (2% buyer) can be reduced to 0.125% via gift transfers, saving AED 49K–599K on AED 2.56M–30M properties. No RETT changes are confirmed for 2025.
Infrastructure Impact: Proximity to JBR, Dubai Marina, and Nakheel Metro Station, plus Ain Dubai and Banyan Tree Dubai, boosts values by 5–10%. Tourism and 85% occupancy drive rental demand (AED 1,000–2,500/night short-term).
Investor Drivers: Freehold status, 100% foreign ownership, and flexible payment plans (5–10% down) fuel 70% of demand. Bluewaters’ premium pricing (AED 2,100–2,600 psf vs. AED 1,790 in Al Jaddaf) attracts high-net-worth buyers.
Risks: Oversupply (182,000 units by 2026) and AML compliance costs (AED 2K–5K) pose a 10–15% correction risk in H2 2025. Construction noise from ongoing projects may affect rentals. Mitigated by 95% absorption, RERA escrow accounts, and DLD oversight.
Regulatory Framework: DLD and RERA ensure transparency with 4% RETT. Escrow laws protect off-plan investments (e.g., Bluewaters Bay, handover Q2 2027). Freehold zones allow inheritance rights.

Investment Strategy

Diversification: Invest in Bluewaters Bay Towers A and B or La Voile for mid-range apartments (AED 2.56M–7M, 7–9% ROI), Bluewaters Residences Phase 2 or Rixos Residences for luxury apartments (AED 3M–8M, 7–9% ROI), or Bluewaters Wharf for townhouses (AED 20M–40M, 6–7% ROI). Off-plan projects offer 15–20% gains by 2028.
Entry Points: Off-plan units (5–10% down) like Rixos Residences (1% monthly) provide flexibility. Completed units in La Voile suit immediate rentals (AED 180K–350K/year).
Tax Optimization: Hold properties personally to avoid 9% corporate tax. Use gift transfers (0.125% RETT) or payment plans to reduce costs. Recover input VAT and consult advisors like Shuraa Tax for FTA compliance.
Process: Verify tax benefits via DLD or FTA. Pay 2% buyer RETT and secure NOC. Use platforms like Property Finder, squareyards.ae, or bluewatersbaydubai.com. Required documents: passport copy, proof of funds, no UAE visa needed. Documents must be translated into Arabic and legalized.

Conclusion

In 2025, Bluewaters Island’s six real estate launches—Bluewaters Bay Towers A and B, Bluewaters Residences Phase 2, La Voile, Bluewaters Wharf, Rixos Residences, and Caesars Palace Residences offer 7–9% ROI and 15–20% appreciation, backed by AED 9.5B in 2024 sales. Leveraging zero personal income, capital gains, and inheritance taxes, VAT exemptions, and gift transfer options (saving AED 49K–599K), these projects minimize tax exposure. Bluewaters Island

Despite a 10–15% correction risk, 95% absorption, RERA protections, and Bluewaters’ premium appeal (AED 2,100–2,600 psf) ensure stability. Explore opportunities via Property Finder, squareyards.ae, or developers like Meraas for high-return, tax-efficient investments in Dubai’s iconic waterfront market.