Ras Al Khaimah Property: 7 City Projects Gaining Momentum With RETT Exemptions in 2025

REAL ESTATE5 months ago

Ras Al Khaimah’s (RAK) AED 9B real estate market in 2024 (25,000% growth over seven years, 2,000+ transactions) offers apartments (AED 400K–5M) and villas (AED 1M–15M) with 7–10% ROI and 6–9% appreciation by 2029. The 2021 freehold law allows 100% ownership for all nationalities, driving demand (40% from GCC, India, Europe).

Minimal tax exposure includes zero personal income, capital gains, or property taxes, with Real Estate Transaction Tax (RETT) exemptions for first-time buyers and select off-plan projects (saving AED 8K–100K). Seven city projects Mirasol, Cape Hayat, Nikki Beach Residences, The Beach Residences, Marbella Resort, Rixos Bay Residences, and Yasmin Village across Al Marjan Island, Mina, and Hayat Island offer apartments, townhouses, and villas (AED 600K–15M) with smart technology, waterfront designs, and incentives like fee waivers. These align with RAK Vision 2030, targeting 3.5M tourists by 2030.

This guide analyzes these projects, detailing rental yields, freehold benefits, tax incentives, sustainability features, and investment potential, supported by 2024–2025 data.

1. Mirasol (Mina, Hayat Island)

Project Details: RAK Properties’ twin-tower beachfront development offers studios, 1–3-bedroom apartments, and duplexes (AED 600K–3M, 400–2,000 sqft) with retail and smart tech. Handover Q2 2028, with 50/50 payment plans, 1-year service charge waiver, and RETT exemption for first-time buyers. Average price: AED 1,500–1,750 psf.
Rental Yields: 7–9% (studios: AED 40K–80K/year; 3-bedroom: AED 100K–180K/year), with 15% rental growth in 2025 due to tourism and Wynn Al Marjan Island proximity.
Freehold Benefits: 100% freehold ownership via RAK Real Estate Department. Enables global resale and inheritance.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2–4%, AED 12K–60K) for first-time buyers. 9% corporate tax on mainland profits above AED 375K; RAK Free Zone ensures 0% corporate tax. 5% VAT on commercial spaces, recoverable for off-plan purchases.
Sustainability Features: Energy-efficient systems, green spaces, aligning with RAK Vision 2030 and SDG 11.
Investment Potential: 6–9% appreciation by 2029 (e.g., AED 600K studio to AED 636K–654K). 80% occupancy due to affordability and beachfront appeal. Golden Visa eligible (AED 2M+).
Impact: Affordable waterfront living with retail. Tax savings (AED 12K–300K) and connectivity to Al Marjan Island (10 min) attract GCC and Indian investors.

2. Cape Hayat (Mina, Hayat Island)

Project Details: RAK Properties’ waterfront project offers 1–4-bedroom apartments and townhouses (AED 1M–4M, 600–2,500 sqft) with smart home systems and retail. Handover Q4 2027, with 60/40 payment plans and RETT exemption for off-plan purchases. Average price: AED 1,667–1,800 psf.
Rental Yields: 7–9% (apartments: AED 70K–150K/year; townhouses: AED 120K–200K/year), with 15% rental growth in 2025 due to Mina’s leisure hubs.
Freehold Benefits: 100% freehold ownership via RAK Real Estate Department. Supports global resale and legacy planning.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2–4%, AED 20K–80K) for off-plan purchases. 9% corporate tax on mainland profits above AED 375K; RAK Free Zone ensures 0% corporate tax. 5% VAT recoverable for off-plan purchases.
Sustainability Features: Green designs, smart waste management, aligning with RAK Vision 2030 and SDG 11.
Investment Potential: 6–8% appreciation by 2029 (e.g., AED 1M apartment to AED 1.06M–1.08M). 80% occupancy due to lifestyle appeal. Golden Visa eligible.
Impact: Urban waterfront living with commercial hubs. Tax savings (AED 20K–400K) and proximity to RAK city center (15 min) attract European and Asian buyers.

3. Nikki Beach Residences (Al Marjan Island)

Project Details: Aldar’s luxury project offers 1–4-bedroom apartments and villas (AED 1.5M–8M, 800–4,000 sqft) with beach access, spa, and smart tech. Handover Q3 2026, with 50/50 payment plans and RETT exemption for first-time buyers. Average price: AED 1,875–2,000 psf.
Rental Yields: 8–10% (apartments: AED 100K–250K/year; villas: AED 200K–400K/year), with 18% rental growth in 2025 due to Wynn Al Marjan Island and tourism.
Freehold Benefits: 100% freehold ownership via RAK Real Estate Department. Enables global resale and inheritance.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2–4%, AED 30K–160K) for first-time buyers. 9% corporate tax on mainland profits above AED 375K; RAK Free Zone ensures 0% corporate tax. 5% VAT on commercial spaces, recoverable for off-plan purchases.
Sustainability Features: Eco-friendly materials, energy-efficient systems, aligning with RAK Vision 2030 and SDG 11.
Investment Potential: 7–9% appreciation by 2029 (e.g., AED 1.5M apartment to AED 1.61M–1.64M). 85% occupancy due to branded luxury. Golden Visa eligible.
Impact: High-end waterfront living with leisure facilities. Tax savings (AED 30K–800K) and proximity to Wynn Resort (5 min) attract HNWIs and GCC investors.

4. The Beach Residences (Al Marjan Island)

Project Details: Dar Global’s project offers 1–3-bedroom apartments and townhouses (AED 1.2M–5M, 700–2,500 sqft) with waterfront views and smart tech. Handover Q2 2027, with 60/40 payment plans and RETT exemption for off-plan purchases. Average price: AED 1,714–2,000 psf.
Rental Yields: 7–9% (apartments: AED 80K–200K/year; townhouses: AED 150K–300K/year), with 15% rental growth in 2025 due to Al Marjan’s tourism appeal.
Freehold Benefits: 100% freehold ownership via RAK Real Estate Department. Supports global resale and legacy planning.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2–4%, AED 24K–100K) for off-plan purchases. 9% corporate tax on mainland profits above AED 375K; RAK Free Zone ensures 0% corporate tax. 5% VAT recoverable for off-plan purchases.
Sustainability Features: Green landscaping, smart home systems, aligning with RAK Vision 2030 and SDG 11.
Investment Potential: 6–8% appreciation by 2029 (e.g., AED 1.2M apartment to AED 1.27M–1.3M). 80% occupancy due to waterfront appeal. Golden Visa eligible.
Impact: Luxury coastal living with retail. Tax savings (AED 24K–500K) and connectivity to RAK city center (20 min) attract European and Indian investors.

5. Marbella Resort (Al Marjan Island)

Project Details: Al Marjan’s project offers 3–5-bedroom villas and townhouses (AED 3M–10M, 2,000–5,000 sqft) with private pools, beach access, and smart tech. Handover Q1 2027, with 50/50 payment plans and RETT exemption for first-time buyers. Average price: AED 1,500–2,000 psf.
Rental Yields: 7–9% (townhouses: AED 150K–250K/year; villas: AED 200K–400K/year), with 15% rental growth in 2025 due to luxury tourism and Wynn Resort proximity.
Freehold Benefits: 100% freehold ownership via RAK Real Estate Department. Enables global resale and inheritance.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2–4%, AED 60K–200K) for first-time buyers. 9% corporate tax on mainland profits above AED 375K; RAK Free Zone ensures 0% corporate tax. 5% VAT on commercial spaces, recoverable for off-plan purchases.
Sustainability Features: Eco-friendly designs, green spaces, aligning with RAK Vision 2030 and SDG 11.
Investment Potential: 6–8% appreciation by 2029 (e.g., AED 3M villa to AED 3.18M–3.24M). 80% occupancy due to premium appeal. Golden Visa eligible.
Impact: Exclusive waterfront living with leisure hubs. Tax savings (AED 60K–1M) and proximity to Al Marjan Island (5 min) attract HNWIs and GCC families.

6. Rixos Bay Residences (Al Marjan Island)

Project Details: RAK Properties’ branded project offers 1–4-bedroom apartments and penthouses (AED 1.8M–8M, 800–4,000 sqft) with hotel amenities and smart tech. Handover Q4 2026, with 60/40 payment plans and RETT exemption for off-plan purchases. Average price: AED 2,000–2,250 psf.
Rental Yields: 8–10% (apartments: AED 120K–300K/year; penthouses: AED 250K–500K/year), with 18% rental growth in 2025 due to branded luxury and tourism.
Freehold Benefits: 100% freehold ownership via RAK Real Estate Department. Supports global resale and legacy planning.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2–4%, AED 36K–160K) for off-plan purchases. 9% corporate tax on mainland profits above AED 375K; RAK Free Zone ensures 0% corporate tax. 5% VAT recoverable for off-plan purchases.
Sustainability Features: Energy-efficient systems, green designs, aligning with RAK Vision 2030 and SDG 11.
Investment Potential: 7–9% appreciation by 2029 (e.g., AED 1.8M apartment to AED 1.93M–1.97M). 85% occupancy due to hotel-style appeal. Golden Visa eligible.
Impact: Luxury urban living with resort facilities. Tax savings (AED 36K–800K) and connectivity to Wynn Resort (5 min) attract HNWIs and Asian investors.

7. Yasmin Village

Project Details: RAK Properties’ community offers 3–5-bedroom villas and townhouses (AED 1.5M–5M, 2,000–4,000 sqft) with parks, retail, and smart tech. Handover Q3 2026, with 50/50 payment plans and RETT exemption for first-time buyers. Average price: AED 750–1,250 psf.
Rental Yields: 8–11.8% (townhouses: AED 100K–200K/year; villas: AED 150K–300K/year), with 15% rental growth in 2025 due to affordability and expat demand.
Freehold Benefits: 100% freehold ownership via RAK Real Estate Department. Enables global resale and inheritance.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2–4%, AED 30K–100K) for first-time buyers. 9% corporate tax on mainland profits above AED 375K; RAK Free Zone ensures 0% corporate tax. 5% VAT on commercial spaces, recoverable for off-plan purchases.
Sustainability Features: Green landscaping, energy-efficient designs, aligning with RAK Vision 2030 and SDG 11.
Investment Potential: 7–10% appreciation by 2029 (e.g., AED 1.5M villa to AED 1.61M–1.65M). 80% occupancy due to family-friendly design. Golden Visa eligible.
Impact: Affordable community living with commercial hubs. Tax savings (AED 30K–500K) and connectivity to RAK city center (10 min) attract GCC and Indian families.

Market Trends and Outlook for 2025

Yields and Appreciation: RAK’s city projects offer 7–11.8% ROI and 6–9% appreciation, driven by AED 9B in 2024 transactions (18.5% YoY growth) and a 10–15% price increase in Q1 2025 (AED 750–2,250 psf). Short-term rentals grew 15%, long-term rentals 12%, with 80–85% occupancy due to tourism (1.28M visitors in 2023) and Wynn Al Marjan Island’s 2027 opening.
Freehold and Tax Environment: Freehold laws since 2021 allow 100% ownership for all nationalities, boosting demand (40% from GCC, India, Europe). Zero personal income, capital gains, and property taxes, with RETT exemptions (2–4%, AED 8K–100K) for first-time buyers and off-plan projects, save AED 8K–1M. RAK Free Zone offers 0% corporate tax; mainland entities face 9% corporate tax on profits above AED 375K. 5% VAT on commercial spaces, recoverable for off-plan purchases.
Infrastructure Impact: Al Marjan Island’s Wynn Resort (AED 18.7B), RAK’s highways (E611, E311), and proximity to Dubai (70 min) boost values by 15–20%. Amenities like Mina’s beach clubs, Al Marjan’s marinas, and Yasmin Village’s schools drive rentals (AED 150–5,000/night).
Investor Drivers: Limited supply (3,000 units in 2025), Golden Visa eligibility (AED 2M+), and flexible payment plans (5–10% down, 50/60 plans) fuel 50% of demand from GCC (25%), India (15%), and Europe (10%). Smart tech and sustainability (Earth Check Silver Certification) enhance appeal.
Risks: Oversupply (3,000 units in 2025) and AML compliance costs (AED 5K–15K) pose a 5–10% correction risk in H2 2025. Mitigated by 80% absorption, escrow accounts, and RAK Real Estate Department oversight. Corporate tax (9% for profits over AED 375K) may impact large investors, though free zone structures minimize this.
Regulatory Framework: RAK Real Estate Department ensures transparency with digital title deeds and escrow laws for off-plan sales (handover 2026–2028). Freehold zones allow inheritance with no estate tax; DIFC Wills Service Centre recommended for non-Muslims. Domestic Minimum Top-up Tax (DMTT) for MNEs with revenues over €750M ensures a 15% minimum tax rate, aligning with OECD standards.

Investment Strategy

Diversification: Invest in Mirasol (AED 600K–3M, 7–9% ROI) or Yasmin Village (AED 1.5M–5M, 8–11.8% ROI) for affordability, Cape Hayat (AED 1M–4M, 7–9% ROI) or The Beach Residences (AED 1.2M–5M, 7–9% ROI) for waterfront living, and Nikki Beach Residences (AED 1.5M–8M, 8–10% ROI), Marbella Resort (AED 3M–10M, 7–9% ROI), or Rixos Bay Residences (AED 1.8M–8M, 8–10% ROI) for luxury buyers.
Entry Points: Off-plan units (5–10% down, 50/60 plans) offer flexibility. Early investment maximizes appreciation as Wynn Resort and tourism mature.
Tax Optimization: Hold properties personally to avoid 9% corporate tax or use RAK Free Zone entities for 0% corporate tax on qualifying income. Leverage RETT exemptions (2–4%, AED 8K–100K) and recover 5% VAT (AED 3K–50K/year) via UAE FTA registration. Consult advisors like Major Developers for compliance.
Process: Verify freehold status via RAK Real Estate Department portals. Pay 2–4% RETT (unless exempt) and secure NOC. Use platforms like Property Finder, topluxuryproperty.com, or bayut.com. Required documents: passport copy, proof of funds, no UAE visa needed. Documents must be translated into Arabic and legalized.

Conclusion

In 2025, RAK’s seven city projects Mirasol, Cape Hayat, Nikki Beach Residences, The Beach Residences, Marbella Resort, Rixos Bay Residences, and Yasmin Village offer 7–11.8% ROI and 6–9% appreciation, backed by AED 9B in 2024 transactions and a 10–15% price surge in Q1 2025.

Freehold laws since 2021 enable global ownership, while minimal tax exposure zero personal income, capital gains, and property taxes, with RETT exemptions (AED 8K–100K) maximizes returns. Sustainability features (smart tech, Earth Check certification) align with RAK Vision 2030 and SDG 11.

Despite a 5–10% correction risk from oversupply, 80% absorption, escrow protections, and infrastructure (Wynn Resort, highways) ensure stability. With prices from AED 600K–15M, tourism-driven rentals (15% growth), and affordable luxury, these projects attract GCC, Indian, and European investors. Ras Al Khaimah