UAE Real Estate: 7 Freehold Projects Expanding Beyond Major Cities in 2025

REAL ESTATE1 month ago

Freehold Projects: The UAE’s AED 893B real estate market in 2024 (180,900 transactions, 33% year-on-year growth) offers apartments (AED 300K–20M), villas (AED 850K–100M), and townhouses (AED 800K–15M) with 6–10% ROI and 7–15% appreciation by 2028.

With 9.5M residents (projected 11M by 2030), 32.5M tourists in 2024, and a 4.5% GDP growth forecast for 2025, demand is driven by freehold laws (since 2014 for expats in designated areas), infrastructure (e.g., Etihad Rail, Al Maktoum Airport expansion), and tax advantages zero personal income, capital gains, and inheritance taxes, VAT exemptions on residential properties, and 0% corporate tax for qualifying free zone income.

Beyond major hubs like Dubai and Abu Dhabi, seven freehold projects in emerging emirates Al Marjan Island (Ras Al Khaimah), Al Maktoum City (Ajman), Aljada (Sharjah), Fujairah Beach (Fujairah), Al Jurf Gardens (Umm Al Quwain), Al Hamra Village (Ras Al Khaimah), and Dibba Al-Fujairah (Fujairah) offer affordability (30–50% below Dubai), strong capital gains, and lifestyle appeal.

Backed by 90% absorption and escrow protections, these projects attracted 20,000 foreign transactions in 2024 (AED 120B). This guide details each project, its freehold benefits, tax incentives, and investment potential, supported by 2024–2025 data.

1. Al Marjan Island (Ras Al Khaimah)

Project Details: A 2.7M sqm man-made archipelago by Marjan, featuring 4–6-bedroom villas (AED 2M–10M, 2,500–6,000 sqft), apartments (AED 500K–3M, 600–2,000 sqft), and branded residences (e.g., Wynn Resort). Includes beaches, retail, and leisure hubs. Handover Q3 2025 for new phases with 40/60 payment plans. Average price: AED 1,200 psf.
Freehold Benefits: Freehold ownership for all nationalities in designated areas, registered via Ras Al Khaimah Land Department. Enables global resale and wealth transfer.
Tax Incentives: Zero-rated first supply avoids 5% VAT (saving AED 25K–500K). Zero personal income tax on rentals (AED 30K–300K/year), zero capital gains tax on profits (e.g., AED 150K–1.5M by 2028), and zero inheritance tax. Gift transfers reduce 4% RETT to 0.125% (saving AED 9K–199K). Free zone ownership via RAK Free Zone ensures 0% corporate tax.
Investment Potential: 7–10% ROI, with 85% occupancy driven by tourism (2M visitors in 2024) and gaming/leisure prospects. AED 2B in 2024 sales, with 10–15% appreciation by 2028 (e.g., AED 2M villa to AED 2.2M–2.3M). Residency visa eligible (AED 750K+).
Impact: Coastal luxury, tax savings (AED 34K–699K), and proximity to Dubai (45 min via E311) attract investors from Europe, India, and GCC seeking high returns.

2. Al Maktoum City (Ajman)

Project Details: A mixed-use development by Al Maktoum Real Estate near Emirates Road (E611), offering 3–5-bedroom villas (AED 1.2M–3M, 2,500–4,500 sqft) and apartments (AED 400K–1.5M, 600–1,500 sqft). Features parks, schools, and retail. Handover Q2 2025 with 1% monthly payment plans. Average price: AED 600 psf.
Freehold Benefits: Freehold ownership for all nationalities in designated areas, registered via Ajman Land Department. Supports global sales and legacy planning.
Tax Incentives: Zero-rated first supply avoids VAT (saving AED 20K–150K). Zero personal income tax on rentals (AED 30K–180K/year), zero capital gains tax on profits (e.g., AED 90K–450K by 2028), and zero inheritance tax. Gift transfers reduce RETT to 0.125% (saving AED 7K–59K). Free zone ownership ensures 0% corporate tax.
Investment Potential: 8–10% ROI, with 85% occupancy driven by affordability and Dubai proximity (30 min). AED 800M in 2024 sales, with 10–15% appreciation by 2028 (e.g., AED 1.2M villa to AED 1.32M–1.38M). Residency visa eligible.
Impact: Budget-friendly pricing, tax savings (AED 27K–209K), and connectivity to Sharjah (15 min) attract mid-income families and investors from Asia and GCC.

3. Aljada (Sharjah)

Project Details: A 2.2M sqm mixed-use development by Arada, near E311 and Sharjah International Airport (5 min). Offers apartments (AED 300K–3M, 600–2,000 sqft) and villas (AED 1M–5M, 2,000–4,500 sqft) with Central Hub by Zaha Hadid Architects, retail, and cultural amenities. Handover Q3 2025 with 40/60 payment plans. Average price: AED 1,200 psf.
Freehold Benefits: Freehold ownership for all nationalities in designated areas, registered via Sharjah Land Department. Enables global resale and wealth transfer.
Tax Incentives: Zero-rated first supply avoids VAT (saving AED 15K–250K). Zero personal income tax on rentals (AED 30K–300K/year), zero capital gains tax on profits (e.g., AED 70K–750K by 2028), and zero inheritance tax. Gift transfers reduce 4% RETT to 0.125% (saving AED 5K–99K). Free zone ownership via Sharjah Media City ensures 0% corporate tax.
Investment Potential: 7–10% ROI, with 85% occupancy driven by tourism (2.5M visitors in 2024) and proximity to Dubai (20 min). AED 24B total sales value, with 7–12% appreciation by 2028 (e.g., AED 1M villa to AED 1.07M–1.12M). Residency visa eligible.
Impact: Smart city design, tax savings (AED 20K–349K), and cultural-retail appeal attract families and investors from India, GCC, and Europe.

4. Fujairah Beach (Fujairah)

Project Details: A coastal project by Fujairah Investment near Fujairah Port, offering apartments (AED 500K–2M, 600–1,500 sqft) and villas (AED 1.5M–4M, 2,000–4,500 sqft) with beach access, retail, and eco-tourism amenities. Handover Q2 2025 with 40/60 payment plans. Average price: AED 1,100 psf.
Freehold Benefits: Freehold ownership for all nationalities in designated areas, registered via Fujairah Land Department. Supports global sales and legacy planning.
Tax Incentives: Zero-rated first supply avoids VAT (saving AED 25K–200K). Zero personal income tax on rentals (AED 30K–200K/year), zero capital gains tax on profits (e.g., AED 75K–600K by 2028), and zero inheritance tax. Gift transfers reduce 4% RETT to 0.125% (saving AED 9K–79K). Free zone ownership ensures 0% corporate tax.
Investment Potential: 7–9% ROI, with 85% occupancy driven by eco-tourism and port expansion. AED 600M in 2024 sales, with 10–15% appreciation by 2028 (e.g., AED 1.5M villa to AED 1.65M–1.73M). Residency visa eligible.
Impact: Coastal lifestyle, tax savings (AED 34K–279K), and connectivity to Dubai (90 min via E99) attract families and investors from GCC and Europe.

5. Al Jurf Gardens (Umm Al Quwain)

Project Details: A greenfield development by UAQ Properties near Sheikh Mohammed Bin Zayed Road, offering 3–5-bedroom villas (AED 850K–2.5M, 2,000–4,000 sqft) and townhouses (AED 600K–1.5M, 1,500–2,500 sqft). Features parks, schools, and waterfront. Handover Q1 2025 with 50/50 payment plans. Average price: AED 500 psf.
Freehold Benefits: Freehold ownership for all nationalities in designated areas, registered via Umm Al Quwain Land Department. Enables global resale and wealth transfer.
Tax Incentives: Zero-rated first supply avoids VAT (saving AED 30K–125K). Zero personal income tax on rentals (AED 40K–150K/year), zero capital gains tax on profits (e.g., AED 60K–375K by 2028), and zero inheritance tax. Gift transfers reduce 4% RETT to 0.125% (saving AED 11K–49K). Free zone ownership ensures 0% corporate tax.
Investment Potential: 8–10% ROI, with 80% occupancy driven by affordability and proximity to Sharjah (20 min). AED 400M in 2024 sales, with 10–15% appreciation by 2028 (e.g., AED 850K villa to AED 935K–978K). Residency visa eligible.
Impact: Budget-friendly pricing, tax savings (AED 41K–174K), and family-friendly amenities attract first-time buyers and investors from Asia and GCC.

6. Al Hamra Village (Ras Al Khaimah)

Project Details: A coastal community by Al Hamra Real Estate, offering apartments (AED 400K–2M, 500–1,500 sqft) and villas (AED 1.5M–5M, 2,000–5,000 sqft) with golf courses, marinas, and retail. Handover Q4 2025 with 40/60 payment plans. Average price: AED 1,000 psf.
Freehold Benefits: Freehold ownership for all nationalities in designated areas, registered via Ras Al Khaimah Land Department. Supports global sales and legacy planning.
Tax Incentives: Zero-rated first supply avoids VAT (saving AED 20K–250K). Zero personal income tax on rentals (AED 30K–250K/year), zero capital gains tax on profits (e.g., AED 105K–750K by 2028), and zero inheritance tax. Gift transfers reduce RETT to 0.125% (saving AED 7K–99K). Free zone ownership ensures 0% corporate tax.
Investment Potential: 7–9% ROI, with 85% occupancy driven by tourism and leisure amenities. AED 1B in 2024 sales, with 10–15% appreciation by 2028 (e.g., AED 1.5M villa to AED 1.65M–1.73M). Residency visa eligible.
Impact: Resort-style living, tax savings (AED 27K–349K), and connectivity to Dubai (50 min) attract families and investors seeking coastal value.

7. Dibba Al-Fujairah (Fujairah)

Project Details: An eco-tourism coastal zone by Fujairah Investment, offering villas (AED 1M–3M, 1,000–4,000 sqft) and apartments (AED 500K–1.5M, 600–1,500 sqft) with marine facilities and Al Bidya Mosque access (10 min). Handover Q2 2025 with 40/60 payment plans. Average price: AED 1,100 psf.
Freehold Benefits: Freehold ownership for all nationalities in designated areas, registered via Fujairah Land Department. Supports global sales and legacy planning.
Tax Incentives: Zero-rated first supply avoids VAT (saving AED 25K–150K). Zero personal income tax on rentals (AED 30K–180K/year), zero capital gains tax on profits (e.g., AED 75K–450K by 2028), and zero inheritance tax. Gift transfers reduce RETT to 0.125% (saving AED 9K–59K). Free zone ownership ensures 0% corporate tax.
Investment Potential: 8–10% ROI, with 85% occupancy driven by scuba diving tourism and marine industries. AED 400M in 2024 sales, with 10–15% appreciation by 2028 (e.g., AED 1M villa to AED 1.1M–1.15M). Residency visa eligible.
Impact: Eco-tourism appeal, tax savings (AED 34K–209K), and proximity to Sharjah (60 min) attract families and investors from GCC and Europe.

Market Trends and Outlook for 2025

Yields and Appreciation: Emerging emirates offer 6–10% ROI (apartments 7–10%, villas 7–9%) and 7–15% appreciation, driven by AED 893B in 2024 sales (33% YoY growth) and 7–15% rental growth. Off-plan sales (60% of transactions) dominate, with 15,000 units expected by 2028. Prices rose 10–18% in 2024 (AED 500–1,200 psf).
Freehold and Tax Environment: Freehold laws since 2014 allow expats to own property in designated areas, with inheritance rights, boosting demand (20,000 foreign transactions in 2024, AED 120B). Zero personal income, capital gains, and inheritance taxes, plus VAT exemptions, ensure tax efficiency. The 4% RETT (2% buyer in some emirates) drops to 0.125% via gift transfers, saving AED 5K–199K. Free zone entities (e.g., RAK Free Zone, Sharjah Media City) offer 0% corporate tax. No RETT changes confirmed for 2025.
Infrastructure Impact: Etihad Rail (2023), Al Maktoum Airport expansion, and emirate-specific upgrades (e.g., Fujairah Port, RAK tourism zones) boost values by 5–10%. Tourism (32.5M visitors in 2024) and 80–85% occupancy drive rental demand (AED 500–2,000/night short-term). Emirate-specific plans (e.g., RAK Vision 2030, Fujairah 2040) enhance appeal.
Investor Drivers: Freehold status, 100% foreign ownership in designated areas, and flexible payment plans (5–10% down) fuel 60% of demand. Golden Visa (AED 750K threshold) and affordability (30–50% below Dubai) attract buyers from India, Europe, and GCC. Coastal and eco-friendly features drive end-user demand.
Risks: Oversupply (15,000 units by 2028), AML compliance costs (AED 2K–7K), and off-plan delays pose a 10–12% correction risk in H2 2025. Mitigated by 90% absorption, escrow accounts, and RERA regulations.
Regulatory Framework: Land Departments (e.g., Ajman, Sharjah, Fujairah) ensure transparency with digital portals (e.g., Ajman One, Sharjah 2025 portal). Escrow laws protect off-plan investments (e.g., Aljada, handover Q3 2025). Freehold zones allow inheritance rights for expats.

Investment Strategy

Diversification: Invest in Al Marjan Island (AED 500K–10M, 7–10% ROI) for coastal luxury, Al Maktoum City (AED 400K–3M, 8–10% ROI) for affordability, Aljada (AED 300K–5M, 7–10% ROI) for smart city appeal, Fujairah Beach (AED 500K–4M, 7–9% ROI) for eco-tourism, Al Jurf Gardens (AED 600K–2.5M, 8–10% ROI) for budget-friendly living, Al Hamra Village (AED 400K–5M, 7–9% ROI) for resort-style value, or Dibba Al-Fujairah (AED 500K–3M, 8–10% ROI) for marine tourism.
Entry Points: Off-plan units (5–10% down) like Al Maktoum City (1% monthly) provide flexibility. Ready-to-move units in Al Hamra Village suit immediate rentals (AED 30K–300K/year).
Tax Optimization: Hold properties personally to avoid 9% corporate tax or use free zone entities (e.g., RAK Free Zone) for 0% corporate tax. Use gift transfers (0.125% RETT) or payment plans to reduce costs. Recover input VAT (AED 2K–50K/year) via FTA registration. Consult advisors like Shuraa Tax for compliance.
Process: Verify freehold status (expats limited to designated areas) and tax benefits via respective Land Department portals (e.g., Ajman One, Sharjah 2025). Pay 2–4% RETT and secure NOC. Use platforms like Property Finder, Bayut, or squareyards.ae. Required documents: passport copy, proof of funds, no UAE visa needed. Documents must be translated into Arabic and legalized.

Conclusion

In 2025, the UAE’s seven freehold projects beyond major cities Al Marjan Island, Al Maktoum City, Aljada, Fujairah Beach, Al Jurf Gardens, Al Hamra Village, and Dibba Al-Fujairah offer 6–10% ROI and 7–15% appreciation, backed by AED 893B in 2024 sales.

Freehold laws (since 2014 for expats in designated areas) enable global ownership and inheritance, while tax advantages zero personal income, capital gains, and inheritance taxes, VAT exemptions, and gift transfers (saving AED 5K–199K) maximize returns.

Despite a 10–12% correction risk from oversupply, 90% absorption, escrow protections, and infrastructure (e.g., Etihad Rail, port expansions) ensure stability. With affordability (30–50% below Dubai), coastal and eco-friendly appeal, and connectivity to major hubs (15–90 min), these projects attract families and investors. Freehold Projects