Fujairah City: 6 Projects With Investor Benefits Linked to Tax Policies in 2025

REAL ESTATE3 weeks ago

Fujairah’s AED 15B real estate market in 2024 (22% YoY growth, 8,500+ transactions in H1 2025) offers apartments (AED 400K–3M) and villas (AED 1.6M–29.5M) with 7–9% ROI and 5–7% appreciation by 2026. Freehold laws since 2008 allow 100% ownership for all nationalities in designated zones, driving demand (60% from India, GCC, Europe).

Tax policies include zero personal income, capital gains, or property taxes, with Real Estate Transaction Tax (RETT) exemptions for off-plan projects (saving AED 8K–590K). Since June 2023, a 9% corporate tax applies to mainland profits above AED 375K, but free zone entities under Qualified Free Zone Person (QFZP) status enjoy 0% corporate tax on qualifying income, enhancing returns for mixed-use investments.

Six projects Address Fujairah Residences, Eagle Fujairah Beach, Rawasi Naseem Al Bahr Villas, Mina Al Fajer, Fujairah Beach Townhouse, and Mattar Residence offer residential, commercial, and hospitality developments (AED 400K–29.5M) with smart technology and sustainable designs. These align with Fujairah Vision 2040, targeting 1.5M 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. Address Fujairah Residences

Project Details: Located in Al Aqah, Dibba Al-Fujairah, this beachfront development by Address Hotels offers luxury villas and apartments (AED 1.6M–10M, 600–3,000 sqft) with high-end finishes and smart tech. Handover Q2 2026, with 50/50 payment plans. Average price: AED 2,667–3,333 psf. 10 minutes from Fujairah International Airport.
Rental Yields: 7–9% (apartments: AED 80K–200K/year; villas: AED 150K–400K/year), with 10% rental growth in 2025 due to tourism (400K visitors in 2024).
Freehold Benefits: 100% freehold ownership via Fujairah Land Department (FLD). Enables global resale, leasing, and inheritance.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2%, AED 32K–200K) for off-plan purchases. 5% VAT exemption on residential sales; recoverable for off-plan purchases. Commercial leases subject to 5% VAT, recoverable by tenants. Fujairah Free Zone (FFZ) proximity offers 0% corporate tax for QFZP on qualifying income (non-mainland revenue <5% or AED 5M).
Sustainability Features: LEED-certified designs, smart energy systems, aligning with Fujairah Vision 2040 and SDG 11.
Investment Potential: 5–7% appreciation by 2026 (e.g., AED 1.6M villa to AED 1.68M–1.71M). 85% occupancy due to luxury and tourism appeal. Investor visa eligible (AED 250K+).
Impact: Coastal hub with hospitality and retail. Tax savings (AED 32K–500K) and proximity to Al Aqah Beach (5 min) attract European and GCC investors.

2. Eagle Fujairah Beach

Project Details: Located in Al Faseel, Sakamkam, this ready-to-move project by Eagle Hills offers villas and apartments (AED 1.6M–7M, 800–3,500 sqft) with beach access and smart tech. 15 minutes from Fujairah International Airport. Average price: AED 2,000–2,857 psf.
Rental Yields: 7–9% (apartments: AED 70K–150K/year; villas: AED 120K–300K/year), with 8% rental growth in 2025 due to coastal demand.
Freehold Benefits: 100% freehold ownership via FLD. Supports global resale and legacy planning.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2%, AED 32K–140K) for off-plan purchases. 5% VAT exemption on residential sales; recoverable for off-plan purchases. Commercial leases subject to 5% VAT, recoverable by tenants. FFZ proximity offers 0% corporate tax for QFZP.
Sustainability Features: Eco-friendly materials, smart water systems, aligning with Fujairah Vision 2040 and SDG 11.
Investment Potential: 5–7% appreciation by 2026 (e.g., AED 1.6M apartment to AED 1.68M–1.71M). 80% occupancy due to beachfront appeal. Investor visa eligible (AED 250K+).
Impact: Tourism-driven hub with retail. Tax savings (AED 32K–350K) and connectivity to Fujairah Port (10 min) attract Indian and GCC investors.

3. Rawasi Naseem Al Bahr Villas

Project Details: Located in Downtown Fujairah, this ready-to-move project by Rawasi Real Estate offers luxury villas (AED 2M–29.5M, 1,500–5,000 sqft) with sea-view gardens, private pools, and smart tech. 12 minutes from Fujairah International Airport. Average price: AED 1,333–5,900 psf.
Rental Yields: 6–8% (villas: AED 150K–500K/year), with 12% rental growth in 2025 due to high-net-worth individual (HNWI) demand.
Freehold Benefits: 100% freehold ownership via FLD. Enables global resale and inheritance.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2%, AED 40K–590K) for off-plan purchases. 5% VAT exemption on residential sales; recoverable for off-plan purchases. Commercial leases subject to 5% VAT, recoverable by tenants. FFZ proximity offers 0% corporate tax for QFZP.
Sustainability Features: Green landscaping, smart energy systems, aligning with Fujairah Vision 2040 and SDG 11.
Investment Potential: 5–7% appreciation by 2026 (e.g., AED 2M villa to AED 2.1M–2.14M). 85% occupancy due to luxury appeal. Investor visa eligible (AED 250K+).
Impact: Premium hub with retail and leisure. Tax savings (AED 40K–1.5M) and proximity to Fujairah Mall (5 min) attract European and GCC investors.

4. Mina Al Fajer

Project Details: Located in Al Aqah, Dibba Al-Fujairah, this ready-to-move project offers apartments and townhouses (AED 800K–3M, 600–2,500 sqft) with coastal views and smart tech. 10 minutes from Fujairah International Airport. Average price: AED 1,333–1,667 psf.
Rental Yields: 7–9% (apartments: AED 60K–120K/year; townhouses: AED 100K–200K/year), with 10% rental growth in 2025 due to tourism demand.
Freehold Benefits: 100% freehold ownership via FLD. Supports global resale and legacy planning.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2%, AED 16K–60K) for off-plan purchases. 5% VAT exemption on residential sales; recoverable for off-plan purchases. Commercial leases subject to 5% VAT, recoverable by tenants. FFZ proximity offers 0% corporate tax for QFZP.
Sustainability Features: Energy-efficient designs, smart lighting, aligning with Fujairah Vision 2040 and SDG 11.
Investment Potential: 5–7% appreciation by 2026 (e.g., AED 800K apartment to AED 840K–856K). 80% occupancy due to affordability and coastal appeal. Investor visa eligible (AED 250K+).
Impact: Family-friendly hub with retail and leisure. Tax savings (AED 16K–300K) and proximity to Al Aqah Beach (5 min) attract Indian and GCC investors.

5. Fujairah Beach Townhouse

Project Details: Located in Corniche Al Fujairah, this ready-to-move project offers townhouses and apartments (AED 1M–3.5M, 800–2,800 sqft) with beachfront access and smart tech. 8 minutes from Fujairah International Airport. Average price: AED 1,250–1,786 psf.
Rental Yields: 7–9% (apartments: AED 70K–150K/year; townhouses: AED 100K–200K/year), with 10% rental growth in 2025 due to short-term rental demand.
Freehold Benefits: 100% freehold ownership via FLD. Enables global resale and inheritance.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2%, AED 20K–70K) for off-plan purchases. 5% VAT exemption on residential sales; recoverable for off-plan purchases. Commercial leases subject to 5% VAT, recoverable by tenants. FFZ proximity offers 0% corporate tax for QFZP.
Sustainability Features: Eco-friendly materials, smart water systems, aligning with Fujairah Vision 2040 and SDG 11.
Investment Potential: 5–7% appreciation by 2026 (e.g., AED 1M townhouse to AED 1.05M–1.07M). 80% occupancy due to coastal and family appeal. Investor visa eligible (AED 250K+).
Impact: Coastal hub with retail and dining. Tax savings (AED 20K–350K) and proximity to Fujairah Corniche (5 min) attract Russian and GCC investors.

6. Mattar Residence

Project Details: Located in Downtown Fujairah, this ready-to-move project offers apartments and commercial spaces (AED 400K–2M, 400–2,000 sqft) with smart tech and urban access. 10 minutes from Fujairah International Airport. Average price: AED 1,000–1,500 psf.
Rental Yields: 8–9% (apartments: AED 40K–100K/year; commercial: AED 60K–150K/year), with 8% rental growth in 2025 due to urban demand.
Freehold Benefits: 100% freehold ownership via FLD. Supports global resale and legacy planning.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2%, AED 8K–40K) for off-plan purchases. 5% VAT exemption on residential sales; recoverable for off-plan purchases. Commercial leases subject to 5% VAT, recoverable by tenants. FFZ proximity offers 0% corporate tax for QFZP.
Sustainability Features: Green building materials, smart energy systems, aligning with Fujairah Vision 2040 and SDG 11.
Investment Potential: 5–7% appreciation by 2026 (e.g., AED 400K apartment to AED 420K–428K). 80% occupancy due to affordability and urban appeal. Investor visa eligible (AED 250K+).
Impact: Urban hub with retail and offices. Tax savings (AED 8K–200K) and proximity to Fujairah City Centre (5 min) attract Indian and GCC investors.

Market Trends and Outlook for 2025

Yields and Appreciation: Fujairah’s projects offer 7–9% ROI and 5–7% appreciation, driven by AED 15B in 2024 transactions and 22% growth in H1 2025 (AED 1,000–5,900 psf). Short-term rentals grew 10%, long-term rentals 8%, with 80–85% occupancy due to tourism (400K visitors in 2024) and infrastructure development.
Freehold and Tax Environment: Freehold laws since 2008 allow 100% ownership in zones like Al Aqah and Downtown Fujairah, boosting demand (60% from India, GCC, Europe). Zero personal income, capital gains, and property taxes, with RETT exemptions (2%, AED 8K–590K) for off-plan projects, save AED 8K–1.5M. 5% VAT exemption on residential sales; recoverable for off-plan purchases. 9% corporate tax on mainland profits above AED 375K; free zones like FFZ offer 0% corporate tax for QFZP on qualifying income (non-mainland revenue <5% or AED 5M). Domestic Minimum Top-up Tax (DMTT) applies a 15% rate to MNEs with revenues over €750M, aligning with OECD standards.
Infrastructure Impact: Fujairah Port expansion (AED 500M, 1,000m quay), Fujairah International Airport upgrades, and E611 highway boost values by 10–15%. Amenities like Fujairah Mall, Al Aqah Beach, and Grand Sheikh Zayed Mosque drive rentals (AED 100–2,000/night).
Investor Drivers: Limited supply (2,000 units by 2026), investor visa eligibility (AED 250K+ for 2–3-year residency), and flexible payment plans (1% monthly or 50/50) fuel 60% of demand from India (30%), GCC (20%), and Europe (10%). Smart tech and sustainability (LEED certification) enhance appeal.
Risks: Oversupply (2,000 units by 2026) and AML compliance costs (AED 5K–15K) pose a 5–8% correction risk in H2 2025. Mitigated by 80% absorption, FLD escrow accounts, and developer credibility. Corporate tax (9% for profits over AED 375K) may impact large investors, though free zone structures minimize this.
Regulatory Framework: FLD ensures transparency with digital title deeds and escrow laws for off-plan sales (handover 2025–2026). Freehold zones allow inheritance with no estate tax; DIFC Wills Service Centre recommended for non-Muslims. AML compliance requires KYC and source-of-funds verification.

Investment Strategy

Diversification: Invest in Mattar Residence (AED 400K–2M, 8–9% ROI) for affordability, Mina Al Fajer (AED 800K–3M, 7–9% ROI) or Fujairah Beach Townhouse (AED 1M–3.5M, 7–9% ROI) for coastal appeal, Address Fujairah Residences (AED 1.6M–10M, 7–9% ROI) or Eagle Fujairah Beach (AED 1.6M–7M, 7–9% ROI) for mid-range luxury, and Rawasi Naseem Al Bahr Villas (AED 2M–29.5M, 6–8% ROI) for premium returns.
Entry Points: Off-plan units (1% monthly or 50/50 plans) offer flexibility. Early investment maximizes appreciation as tourism and infrastructure mature.
Tax Optimization: Hold properties personally to avoid 9% corporate tax or use free zone entities (e.g., FFZ) for 0% corporate tax on qualifying income. Leverage RETT exemptions (2%, AED 8K–590K) and recover 5% VAT (AED 3K–100K/year) via UAE FTA registration. Consult advisors like Property Shop Investment (info@psinv.net) for compliance.
Process: Verify freehold status via FLD portals. Pay 2% RETT (unless exempt) and registration fees (AED 2K–4K). Use platforms like dxboffplan.com, squareyards.ae, or everhomes.ae. Required documents: passport copy, proof of funds, no UAE visa needed. Documents must be translated into Arabic and legalized.

Conclusion

In 2025, Fujairah’s six projects Address Fujairah Residences, Eagle Fujairah Beach, Rawasi Naseem Al Bahr Villas, Mina Al Fajer, Fujairah Beach Townhouse, and Mattar Residence offer 7–9% ROI and 5–7% appreciation, backed by AED 15B in 2024 transactions and 22% growth in H1 2025.

Freehold laws since 2008 enable global ownership, while tax policies zero personal income, capital gains, and property taxes, with RETT exemptions (AED 8K–590K) and 5% VAT exemptions on residential sales maximize returns. Free zone entities in FFZ provide 0% corporate tax on qualifying income, enhancing commercial investment appeal.

Sustainability features (smart tech, LEED certification) align with Fujairah Vision 2040 and SDG 11. Despite a 5–8% correction risk from oversupply, 80% absorption, FLD escrow protections, and infrastructure (Fujairah Port, airport upgrades) ensure stability. With prices from AED 400K–29.5M, tourism-driven rentals (10% growth), and diverse appeal, these projects attract Indian, GCC, and European investors. Fujairah city