Imagine your kids splashing in a crystal-clear lagoon, the sun setting over a Mediterranean-inspired villa, and the feeling of a permanent vacation right at home. In 2025, Damac Lagoons, a sprawling 45 million square foot master-planned community by Damac Properties, is redefining family living in Dubai with its resort-style projects. Nestled near Hessa Street, this freehold destination offers 100% foreign ownership in a tax-friendly environment that outshines global hubs like London or New York, where taxes can erode 15-40% of gains.
The UAE’s dirham, pegged to the U.S. dollar, eliminates currency risk, and residential sales dodge 5% VAT, saving thousands. With a 5% population surge, 25 million tourists, and 8-12% price appreciation expected, Damac Lagoons’ 5-7% rental yields surpass London (2-4%) or New York (3-4%).
Properties over $545,000 qualify for a 10-year Golden Visa, while smaller units offer 2-year residency perks. This guide explores five vibrant projects Nice, Portofino, Santorini, Costa Brava, and Malta that blend lagoon-front living, family-friendly amenities, and strong investment potential in 2025.
Damac Lagoons, located 10 minutes from Dubai Marina, 20 minutes from Downtown Dubai, and near Al Maktoum International Airport, is designed for families seeking a resort-like lifestyle. With 8,000 villas and townhouses, 4,000 apartments, and amenities like man-made lagoons, water cinemas, and kids’ play areas, it feels like a perpetual holiday. Accessible via Sheikh Zayed Road and Emirates Road, it’s close to Dubai Polo & Equestrian Club and Global Village.
With 58% non-resident buyers from countries like India, the UK, and China driving 94,000 property transactions in the first half of 2025, Damac Lagoons boasts low vacancy rates (3-4% vs. 7-10% globally) and 5-7% rental yields. A $600,000 property yielding 6% ($36,000 annually) is tax-free, versus $25,200-$28,800 elsewhere. Zero capital gains tax saves $48,000-$67,200 on a $240,000 profit. No annual property taxes save $6,000-$12,000 yearly, and residential sales avoid 5% VAT ($30,000).
The 9% corporate tax doesn’t apply to individual landlords, and free zone companies save $1,000-$15,000 annually. Small business relief waives corporate tax for revenues under $816,000 until December 31, 2026. With its water-centric amenities and family focus, Damac Lagoons feels like a joyful, high-return haven.
The blend of resort vibes and family warmth makes living or investing here feel like a dream come true.
Nice, set for completion in Q3 2025, offers 5-7% rental yields and 8-12% price growth. Featuring 4-6 bedroom villas ($680,625-$1.36 million), these 2,200-4,500 square foot homes boast French Riviera-inspired designs, private gardens, and lagoon views.
A $800,000 villa yields $40,000-$56,000 tax-free annually, versus $28,000-$39,200 elsewhere. With 25% growth over three years, selling it for $1 million yields a $200,000 tax-free profit, saving $40,000-$56,000 in capital gains tax. No property taxes save $8,000-$16,000 yearly, and VAT exemption saves $40,000.
Initial costs include a 4% Dubai Land Department (DLD) fee ($27,225-$54,450), 2% broker fee ($13,613-$27,225), and a 20/50/30 payment plan (20% on booking, 50% during construction, 30% on handover). Annual maintenance fees are $5,000-$10,000, and landlords pay a 5% municipality fee ($2,000-$2,800). A Qualified Free Zone Person (QFZP) free zone company saves $10,240-$14,336 on $102,400-$143,360 in rental income.
U.S. investors can deduct depreciation ($12,091-$24,182) and management fees ($1,860-$4,255), saving up to $18,182. Golden Visa eligibility applies for properties over $545,000. Short-term rentals, leveraging 25 million tourists, boost yields by 10-20% with Department of Tourism and Commerce Marketing (DTCM) registration ($408-$816 annually). Its 3% vacancy rate and family-friendly amenities like water parks attract expat families.
The breezy, lagoon-front design feels like a nurturing, high-return retreat.
Portofino, set for completion in Q2 2025, offers 5-7% rental yields and 8-12% price growth. Featuring 3-5 bedroom townhouses ($544,500-$1.09 million), these 1,800-3,500 square foot homes feature Italian-inspired architecture, private terraces, and access to water sports facilities.
A $700,000 townhouse yields $35,000-$49,000 tax-free annually, versus $24,500-$34,300 elsewhere. With 25% growth, selling it for $875,000 yields a $175,000 tax-free profit, saving $35,000-$49,000 in capital gains tax. No property taxes save $7,000-$14,000 yearly, and VAT exemption saves $35,000.
Initial costs include a 4% DLD fee ($21,780-$43,650), 2% broker fee ($10,890-$21,825), and a 20/50/30 payment plan. Annual maintenance fees are $3,500-$8,000, and landlords pay a 5% municipality fee ($1,750-$2,450). A QFZP free zone company saves $8,925-$12,495 on $89,250-$124,950 in rental income.
U.S. investors can deduct depreciation ($12,091-$24,182) and management fees ($1,860-$4,255), saving up to $18,182. Golden Visa eligibility applies for properties over $545,000. Short-term rentals boost yields by 10-20%. Its 4% vacancy rate and proximity to kids’ adventure zones appeal to young families and investors.
The vibrant, coastal aesthetic feels like a lively, high-return family haven.
Santorini, set for completion in Q4 2025, offers 5-7% rental yields and 8-12% price growth. Featuring 4-6 bedroom villas ($816,750-$1.63 million), these 2,500-5,000 square foot homes showcase white-and-blue Greek designs, private pools, and lagoon access.
A $1 million villa yields $50,000-$70,000 tax-free annually, versus $35,000-$49,000 elsewhere. With 25% growth, selling it for $1.25 million yields a $250,000 tax-free profit, saving $50,000-$70,000 in capital gains tax. No property taxes save $10,000-$20,000 yearly, and VAT exemption saves $50,000.
Initial costs include a 4% DLD fee ($32,670-$65,340), 2% broker fee ($16,335-$32,670), and a 20/50/30 payment plan. Annual maintenance fees are $5,000-$12,000, and landlords pay a 5% municipality fee ($2,500-$3,500). A QFZP free zone company saves $12,800-$17,920 on $128,000-$179,200 in rental income. U.S. investors can deduct depreciation ($16,182-$32,727) and management fees ($2,487-$5,782), saving up to $22,909. Golden Visa eligibility applies. Short-term rentals boost yields by 10-20%. Its 3% vacancy rate and proximity to water cinemas attract affluent families.
The serene, island-inspired vibe feels like a luxurious, high-return sanctuary.
Costa Brava, set for completion in Q1 2026, offers 5-7% rental yields and 8-12% price growth. Featuring 3-5 bedroom townhouses ($598,950-$1.09 million), these 2,000-3,500 square foot homes feature Spanish-inspired designs, rooftop terraces, and lagoon views. A $800,000 townhouse yields $40,000-$56,000 tax-free annually, versus $28,000-$39,200 elsewhere. With 25% growth, selling it for $1 million yields a $200,000 tax-free profit, saving $40,000-$56,000 in capital gains tax. No property taxes save $8,000-$16,000 yearly, and VAT exemption saves $40,000.
Initial costs include a 4% DLD fee ($23,958-$43,650), 2% broker fee ($11,979-$21,825), and a 20/50/30 payment plan. Annual maintenance fees are $4,000-$8,000, and landlords pay a 5% municipality fee ($2,000-$2,800). A QFZP free zone company saves $10,240-$14,336 on $102,400-$143,360 in rental income.
U.S. investors can deduct depreciation ($12,091-$24,182) and management fees ($1,860-$4,255), saving up to $18,182. Golden Visa eligibility applies for properties over $545,000. Short-term rentals boost yields by 10-20%. Its 4% vacancy rate and vibrant amenities like beach bars appeal to families and investors.
The colorful, coastal charm feels like a festive, high-return retreat.
Malta, set for completion in Q2 2026, offers 5-7% rental yields and 8-12% price growth. Featuring 4-6 bedroom villas ($952,575-$1.9 million), these 3,000-5,500 square foot homes include Maltese-inspired designs, private pools, and lagoon-front patios. A $1.2 million villa yields $60,000-$84,000 tax-free annually, versus $42,000-$58,800 elsewhere. With 25% growth, selling it for $1.5 million yields a $300,000 tax-free profit, saving $60,000-$84,000 in capital gains tax. No property taxes save $12,000-$24,000 yearly, and VAT exemption saves $60,000.
Initial costs include a 4% DLD fee ($38,103-$76,206), 2% broker fee ($19,052-$38,103), and a 20/50/30 payment plan. Annual maintenance fees are $6,000-$15,000, and landlords pay a 5% municipality fee ($3,000-$4,200). A QFZP free zone company saves $15,360-$21,504 on $153,600-$215,040 in rental income.
U.S. investors can deduct depreciation ($24,182-$36,364) and management fees ($3,720-$6,364), saving up to $22,909. Golden Visa eligibility applies. Short-term rentals boost yields by 10-20%. Its 3% vacancy rate and boutique appeal attract high-net-worth families.
The elegant, lagoon-side vibe feels like an exclusive, high-return sanctuary.
Buying in these projects involves manageable costs. A $600,000 property incurs a 4% DLD fee ($24,000), 2% broker fee ($12,000), and a 10% deposit ($60,000). Flexible payment plans like 20/50/30 spread costs, with 50-70% paid during construction. Annual maintenance fees range from $3,500-$15,000, and landlords pay a 5% municipality fee ($1,500-$4,200).
Short-term rentals require DTCM registration ($408-$816), while long-term leases need Ejari registration ($54-$136). Off-plan purchases may incur 5% VAT ($27,225-$95,258), recoverable via Federal Tax Authority registration ($500-$1,000). A QFZP free zone company saves $1,000-$21,504 annually on corporate tax.
These costs feel like a small price for Damac Lagoons’ resort-like allure.
To optimize returns, use these strategies. First, target high-yield projects like Santorini (5-7%) or Malta (5-7%) for premium returns. Second, leverage short-term rentals in Portofino or Costa Brava for 10-20% yield boosts, ensuring DTCM compliance. Third, set up a QFZP free zone company to save $1,000-$21,504 annually. Fourth, recover 5% VAT on off-plan purchases.
Fifth, leverage small business relief for revenues under $816,000 until 2026. Sixth, U.S. investors should report rental income on Schedule E, deducting depreciation ($12,091-$36,364), maintenance ($3,500-$15,000), and mortgage interest, saving thousands. Non-U.S. investors can use double taxation treaties with 130+ countries to avoid taxes like the UK’s 20-28% capital gains tax. Hire a property manager ($3,000-$10,000 annually) for ease. Consult a tax professional for compliance.
Risks include a projected oversupply of 41,000 units in 2025, potentially slowing price growth. Mitigate by choosing trusted developer Damac Properties, verifying escrow compliance under the 2025 Oqood system for off-plan buys, and targeting high-demand projects with low vacancies (3-4%).
Ensure QFZP eligibility to avoid fines up to $136,125. Long-term leases in Santorini or Malta ensure stability, while short-term rentals in Nice boost yields. Proximity to Dubai Marina and the planned Dubai Metro Blue Line by 2029 drive demand. Regular market analysis keeps you ahead of trends.
Nice offers Mediterranean-inspired villas, Portofino delivers Italian coastal charm, Santorini blends Greek-inspired elegance, Costa Brava brings Spanish vibrancy, and Malta epitomizes boutique luxury. With 5-7% yields, 8-12% price growth, flexible payment plans, and resort-style amenities, these Damac Lagoons projects are top picks for 2025, offering families a joyful, lagoon-front lifestyle and robust financial returns for investors.
read more: South Dubai Communities Launching Freehold Zones in 2025