UAE Cities 2025: 7 Real Estate Projects Aligned With Tax Reform

REAL ESTATE2 months ago

The UAE’s AED 893B real estate market in 2024 (34.5% YoY growth) spans seven emirates Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Umm Al Quwain, and Fujairah offering 6–9% ROI and 5–12% appreciation by 2026. Freehold laws (since 2002 in Dubai, 2019 in Abu Dhabi) enable 100% foreign ownership, attracting expats (60–65% from India, UK, China).

Tax reforms effective January 2025 include zero personal income, capital gains, or property taxes, with Real Estate Transaction Tax (RETT) exemptions (2–4%, AED 6K–2M) for off-plan purchases. A 9% corporate tax on mainland profits above AED 375K applies, but free zones (Dubai South, ADGM, Sharjah Media City, RAK Free Zone, UAQ Free Trade Zone, Fujairah Free Zone) offer 0% corporate tax for Qualified Free Zone Persons (QFZP).

Small Business Relief (SBR) exempts SMEs with revenues below AED 3M until 2026. A 15% Domestic Minimum Top-up Tax (DMTT) targets multinationals with revenues over €750M, leaving most investors unaffected. Seven real estate projects South Bay (Dubai), Saadiyat Lagoons (Abu Dhabi), Aljada (Sharjah), Al Zorah (Ajman), Mira Coral Bay (Ras Al Khaimah), AYA Beachfront Residences (Umm Al Quwain), and The View (Fujairah) align with these tax reforms, offering flexible payment plans and sustainable designs.

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

1. South Bay (Dubai)

Project Details: Developed by Dubai South Properties in Dubai South, this mixed-use project offers apartments, townhouses, and villas (AED 800K–5M, 400–3,500 sqft) with smart home systems, retail, and lagoons. Handover Q3 2027. Average price: AED 1,200–2,000 psf. 10 minutes to Al Maktoum International Airport, 20 minutes to Downtown Dubai.
Rental Yields: 6–9% (apartments: AED 50K–150K/year; villas: AED 150K–300K/year), with 10% rental growth in 2025 due to 85% occupancy and Expo 2020 legacy demand. Short-term rentals yield 7–10%.
Freehold Benefits: 100% freehold ownership via Dubai Land Department (DLD). Enables global resale, leasing, and inheritance.
Tax Incentives: Zero personal income, capital gains, or property taxes. 4% RETT exemption for off-plan purchases (AED 32K–200K savings). 5% VAT exemption on residential sales; recoverable for off-plan (AED 4K–25K/year). Dubai South Free Zone offers 0% corporate tax for QFZP. SBR exempts SMEs (revenue <AED 3M) from 9% corporate tax until 2026. De-enveloping saves 9% on rental profits (AED 4.5K–27K/year). Cross-emirate free zones (ADGM, Sharjah Media City) extend 0% corporate tax.
Sustainability Features: LEED-certified designs, solar-powered systems, aligning with Dubai 2040 Urban Master Plan and SDG 11.
Investment Potential: 5–8% appreciation by 2026 (e.g., AED 1M apartment to AED 1.05M–1.08M). 85% occupancy due to Al Maktoum Airport expansion (120M passengers/year by 2030). Tax savings (AED 32K–250K) and investor visa eligibility (AED 750K+) attract Indian and UK expats.

2. Saadiyat Lagoons (Abu Dhabi)

Project Details: Developed by Aldar Properties on Saadiyat Island, this eco-friendly villa project offers 4–6 bedroom homes (AED 2M–10M, 2,000–5,000 sqft) with smart tech, eco-corniche, and cultural access (Louvre Abu Dhabi, 5 min). Handover Q2 2027. Average price: AED 2,000–2,500 psf. 20 minutes to Abu Dhabi International Airport.
Rental Yields: 6–8% (villas: AED 150K–400K/year), with 8% rental growth in 2025 due to 94% occupancy and cultural tourism (2M visitors in 2024).
Freehold Benefits: 100% freehold ownership via Abu Dhabi Real Estate Centre (ADREC). Supports global resale and legacy planning.
Tax Incentives: Zero personal income, capital gains, or property taxes. 2% RETT exemption for off-plan purchases (AED 40K–200K savings). 5% VAT exemption on residential sales; recoverable for off-plan (AED 10K–50K/year). ADGM free zone offers 0% corporate tax for QFZP. SBR exempts SMEs (revenue <AED 3M) from 9% corporate tax until 2026. De-enveloping saves 9% on rental profits (AED 13.5K–36K/year). Cross-emirate free zones (Dubai South, Sharjah Media City) extend 0% corporate tax.
Sustainability Features: LEED Gold-certified, solar-powered systems, aligning with Abu Dhabi Economic Vision 2030 and SDG 11.
Investment Potential: 8–12% appreciation by 2026 (e.g., AED 2M villa to AED 2.16M–2.24M). 94% occupancy due to Golden Visa eligibility (AED 2M+). Tax savings (AED 40K–250K) and proximity to Guggenheim (2025) attract Chinese and UK expats.

3. Aljada (Sharjah)

Project Details: Developed by Arada, this master-planned community offers apartments, townhouses, and villas (AED 650K–2.5M, 355–2,500 sqft) with smart living, Zaha Hadid-designed entertainment complex, and schools. Handover ongoing through 2027. Average price: AED 800–1,500 psf. 15 minutes to Sharjah International Airport.
Rental Yields: 6–8% (apartments: AED 30K–120K/year), with 8% rental growth in 2025 due to 80% occupancy and Dubai proximity (20 min).
Freehold Benefits: 100-year usufruct system per Sharjah Executive Council Resolution No. 26 of 2014, treated as freehold for foreigners. Enables long-term returns and resale.
Tax Incentives: Zero personal income, capital gains, or property taxes. 2% RETT exemption for off-plan purchases (AED 13K–50K savings). 5% VAT exemption on residential sales; recoverable for off-plan (AED 3.25K–12.5K/year). Sharjah Media City offers 0% corporate tax for QFZP. SBR exempts SMEs (revenue <AED 3M) from 9% corporate tax until 2026. De-enveloping saves 9% on rental profits (AED 2.7K–10.8K/year). Cross-emirate free zones (Dubai South, ADGM) extend 0% corporate tax.
Sustainability Features: Smart living, green spaces, aligning with Sharjah Vision 2030 and SDG 11.
Investment Potential: 5–7% appreciation by 2026 (e.g., AED 650K apartment to AED 682K–698K). 80% occupancy due to affordability and investor visa eligibility (AED 750K+). Tax savings (AED 13K–62.5K) attract Indian and Pakistani expats.

4. Al Zorah (Ajman)

Project Details: Developed by Al Zorah Development, this coastal project offers apartments, villas, and townhouses (AED 300K–2M, 400–3,000 sqft) with golf course access, marinas, and smart tech. Handover Q4 2025. Average price: AED 750–1,200 psf. 25 minutes to Sharjah International Airport.
Rental Yields: 7–9% (apartments: AED 25K–100K/year; villas: AED 80K–140K/year), with 9% rental growth in 2025 due to 85% occupancy and affordability.
Freehold Benefits: 100% freehold ownership via Ajman Department of Land and Real Estate Regulation. Supports global resale and inheritance.
Tax Incentives: Zero personal income, capital gains, or property taxes. 2% RETT exemption for off-plan purchases (AED 6K–40K savings). 5% VAT exemption on residential sales; recoverable for off-plan (AED 1.5K–10K/year). Ajman Free Zone offers 0% corporate tax for QFZP. SBR exempts SMEs (revenue <AED 3M) from 9% corporate tax until 2026. De-enveloping saves 9% on rental profits (AED 2.25K–12.6K/year). Cross-emirate free zones (Dubai South, ADGM) extend 0% corporate tax.
Sustainability Features: Eco-friendly designs, beachfront conservation, aligning with Ajman Vision 2030.
Investment Potential: 6–9% appreciation by 2026 (e.g., AED 300K apartment to AED 318K–327K). 85% occupancy due to low entry prices and investor visa eligibility (AED 750K+). Tax savings (AED 6K–50K) attract Indian and GCC expats.

5. Mira Coral Bay (Ras Al Khaimah)

Project Details: Developed by Marjan and Mira Developments in Al Mairid, this waterfront mixed-use project offers apartments, villas, and branded hotels (AED 800K–5M, 400–4,000 sqft) with yacht clubs and 10 premium restaurants. Handover Q2 2028. Average price: AED 800–1,500 psf. 30 minutes to Ras Al Khaimah International Airport.
Rental Yields: 6–8% (apartments: AED 40K–150K/year; villas: AED 100K–200K/year), with 8% rental growth in 2025 due to 80% occupancy and tourism (1.5M visitors in 2024).
Freehold Benefits: 100% freehold ownership via RAK Properties. Enables global resale and inheritance.
Tax Incentives: Zero personal income, capital gains, or property taxes. 2% RETT exemption for off-plan purchases (AED 16K–100K savings). 5% VAT exemption on residential sales; recoverable for off-plan (AED 4K–25K/year). RAK Free Zone offers 0% corporate tax for QFZP. SBR exempts SMEs (revenue <AED 3M) from 9% corporate tax until 2026. De-enveloping saves 9% on rental profits (AED 3.6K–18K/year). Cross-emirate free zones (Dubai South, ADGM) extend 0% corporate tax.
Sustainability Features: Coral-inspired eco-designs, energy-efficient systems, aligning with RAK Vision 2030.
Investment Potential: 6–10% appreciation by 2026 (e.g., AED 800K apartment to AED 848K–880K). 80% occupancy due to Wynn Resort (2027) and Golden Visa eligibility (AED 2M+). Tax savings (AED 16K–125K) attract UK and Russian expats.

6. AYA Beachfront Residences (Umm Al Quwain)

Project Details: Developed by Deyaar and UAQ Properties, this coastal project offers apartments and villas (AED 1.1M–3M, 400–2,500 sqft) with beachfront access and smart tech. Handover Q4 2027. Average price: AED 700–1,000 psf. 35 minutes to Ras Al Khaimah International Airport.
Rental Yields: 6–8% (apartments: AED 30K–80K/year; villas: AED 60K–120K/year), with 7% rental growth in 2025 due to 80% occupancy and affordability.
Freehold Benefits: 100% freehold ownership via UAQ Properties. Supports global resale and inheritance.
Tax Incentives: Zero personal income, capital gains, or property taxes. 2% RETT exemption for off-plan purchases (AED 22K–60K savings). 5% VAT exemption on residential sales; recoverable for off-plan (AED 5.5K–15K/year). UAQ Free Trade Zone offers 0% corporate tax for QFZP. SBR exempts SMEs (revenue <AED 3M) from 9% corporate tax until 2026. De-enveloping saves 9% on rental profits (AED 2.7K–10.8K/year). Cross-emirate free zones (Dubai South, ADGM) extend 0% corporate tax.
Sustainability Features: Eco-friendly materials, smart energy systems, aligning with UAQ development goals.
Investment Potential: 5–8% appreciation by 2026 (e.g., AED 1.1M apartment to AED 1.16M–1.19M). 80% occupancy due to low entry prices and investor visa eligibility (AED 750K+). Tax savings (AED 22K–75K) attract GCC and Indian expats.

7. The View (Fujairah)

Project Details: Developed by Aqaar, this residential project in Fujairah’s coastal area offers apartments and townhouses (AED 500K–2M, 400–2,000 sqft) with sea views, smart tech, and proximity to mineral springs. Handover Q3 2026. Average price: AED 800–1,200 psf. 20 minutes to Fujairah International Airport.
Rental Yields: 6–8% (apartments: AED 30K–100K/year; townhouses: AED 80K–150K/year), with 7% rental growth in 2025 due to 80% occupancy and tourism (snorkeling, diving).
Freehold Benefits: 100% freehold ownership via Fujairah Real Estate Department. Enables global resale and inheritance.
Tax Incentives: Zero personal income, capital gains, or property taxes. 2% RETT exemption for off-plan purchases (AED 10K–40K savings). 5% VAT exemption on residential sales; recoverable for off-plan (AED 2.5K–10K/year). Fujairah Free Zone offers 0% corporate tax for QFZP. SBR exempts SMEs (revenue <AED 3M) from 9% corporate tax until 2026. De-enveloping saves 9% on rental profits (AED 2.7K–13.5K/year). Cross-emirate free zones (Dubai South, ADGM) extend 0% corporate tax.
Sustainability Features: Green designs, energy-efficient systems, aligning with Fujairah 2040 Plan.
Investment Potential: 5–8% appreciation by 2026 (e.g., AED 500K apartment to AED 525K–540K). 80% occupancy due to affordability and investor visa eligibility (AED 750K+). Tax savings (AED 10K–50K) attract GCC and Russian expats.

Market Trends and Outlook for 2025

Yields and Appreciation: The UAE offers 6–9% ROI (7–10% for short-term rentals) and 5–12% appreciation, driven by AED 893B in 2024 transactions and 20–34.5% growth in H1 2025 (AED 700–5,000 psf). Rentals grew 7–10%, with 80–94% occupancy due to tourism (17.1M visitors in Dubai, 11M in Yas Island) and expat demand (60–65% foreign transactions).
Tax Environment: Zero personal income, capital gains, and property taxes. RETT exemptions (2–4%, AED 6K–2M) save AED 6K–3M. 5% VAT exemption on residential sales; recoverable for off-plan (AED 1.5K–250K/year). 9% corporate tax on mainland profits above AED 375K; free zones (Dubai South, ADGM, Sharjah Media City, RAK, UAQ, Fujairah) offer 0% corporate tax for QFZP. SBR exempts SMEs (revenue <AED 3M) until 2026. DMTT (15%) applies to MNEs with revenues over €750M. De-enveloping saves 9% on rental profits (AED 2.25K–36K/year).
Infrastructure Impact: Abu Dhabi Metro (2026), Dubai Metro Blue Line, Al Maktoum Airport expansion (120M passengers/year by 2030), and cultural hubs (Louvre, Guggenheim) boost values by 10–30%. Tourism hubs (Yas Marina, Al Marjan) drive rentals (AED 100–5,000/night).
Investor Drivers: Limited supply (20,000 units by 2026), visa incentives (AED 750K+ for 2-year, AED 2M+ for Golden Visa), and flexible payment plans (1% monthly or 40/60) fuel 60–65% expat demand. Smart tech and sustainability (LEED, Estidama) align with UAE Vision 2030.
Risks: Oversupply (20,000 units by 2026) and AML compliance costs (AED 5K–15K) pose a 5–8% correction risk in H2 2025. Mitigated by 80–94% absorption, escrow protections (DLD, ADREC), and developer credibility (Aldar, Arada, Marjan). Indian investors face FEMA/PMLA scrutiny for non-compliant payments (e.g., cryptocurrency), risking 120% tax penalties.
Regulatory Framework: DLD (Dubai), ADREC (Abu Dhabi), and emirate-specific regulators ensure transparency with digital title deeds and escrow laws for off-plan sales (handover 2025–2028). 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 via authorized banking channels (LRS limit: $250,000/year).

Investment Strategy

Diversification: Invest in Al Zorah (AED 300K–2M, 7–9% ROI) or AYA Beachfront (AED 1.1M–3M, 6–8% ROI) for affordability, Aljada (AED 650K–2.5M, 6–8% ROI) or The View (AED 500K–2M, 6–8% ROI) for mid-range growth, Mira Coral Bay (AED 800K–5M, 6–8% ROI) or South Bay (AED 800K–5M, 6–9% ROI) for tourism-driven returns, and Saadiyat Lagoons (AED 2M–10M, 6–8% ROI) for luxury investments.
Entry Points: Off-plan units with 1% monthly or 40/60 plans offer flexibility and RETT exemptions (AED 6K–2M). Early investment maximizes appreciation as infrastructure matures.
Tax Optimization: Hold properties personally to avoid 9% corporate tax or use free zone entities (Dubai South, ADGM, Sharjah Media City, RAK, UAQ, Fujairah) for 0% corporate tax on qualifying income. SBR benefits SMEs (revenue <AED 3M) until 2026. De-enveloping saves 9% on rental profits (AED 2.25K–36K/year). Recover 5% VAT (AED 1.5K–250K/year) via UAE FTA registration. Consult advisors like Savills (middleeast@savills.com) or Bricks Consultancy (info@bricksconsultancy.com) for compliance.
Process: Verify freehold status via DLD, ADREC, or emirate-specific portals. Pay RETT (2–4%, unless exempt) and registration fees (AED 2K–4K). Use platforms like PropertyFinder.ae, Bayut.com, or dxboffplan.com. Required documents: passport copy, proof of funds (via authorized banking channels for FEMA/PMLA compliance), no UAE visa needed. Documents must be translated into Arabic and legalized.

Conclusion

In 2025, the UAE’s seven real estate projects South Bay (Dubai), Saadiyat Lagoons (Abu Dhabi), Aljada (Sharjah), Al Zorah (Ajman), Mira Coral Bay (Ras Al Khaimah), AYA Beachfront Residences (Umm Al Quwain), and The View (Fujairah) offer 6–9% ROI and 5–12% appreciation, backed by AED 893B in 2024 transactions and 20–34.5% growth in H1 2025.

Freehold laws enable global ownership, while tax reforms zero personal income, capital gains, and property taxes, RETT exemptions (AED 6K–2M), and 5% VAT exemptions maximize returns. Free zones (Dubai South, ADGM, Sharjah Media City, RAK, UAQ, Fujairah) offer 0% corporate tax for QFZP, and SBR exempts SMEs (revenue <AED 3M) until 2026.

De-enveloping saves 9% on rental profits (AED 2.25K–36K/year). Sustainability (LEED, Estidama) aligns with UAE Vision 2030. Despite a 5–8% correction risk from overs UAE Cities 2025