Ajman City Projects: 6 Free Zones Offering Tax-Free Residential Options in 2025

REAL ESTATE3 weeks ago

Ajman’s AED 9.5B real estate market in 2024 (25% YoY growth, 15,000+ transactions in H1 2025) offers apartments (AED 172K–3M) and villas (AED 1M–29.5M) with 7–10% 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, Russia).

Tax policies include zero personal income, capital gains, or property taxes, with Real Estate Transaction Tax (RETT) exemptions for off-plan projects (saving AED 3.4K–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 free zones Ajman Free Zone (AFZ), Ajman Media City, Al Zorah, Ajman Boulevard, Ajman Car Souq, and Ajman New Venture Free Zone offer residential, commercial, and retail developments (AED 172K–29.5M) with smart technology and sustainable designs. These align with Ajman Vision 2030, targeting 1M tourists by 2030.

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

1. Ajman Free Zone (AFZ)

Zone Details: Established in 1988, AFZ offers apartments, offices, and warehouses (AED 630K–3M, 500–2,500 sqft) with smart tech near Ajman Port. Projects like Ajman Creek Towers (handover Q4 2026, 100/0 payment plan) provide scenic creek views. Located 20 minutes from Sharjah International Airport. Average price: AED 1,260–1,800 psf.
Rental Yields: 7–10% (apartments: AED 50K–150K/year; commercial: AED 80K–200K/year), with 10% rental growth in 2025 due to trade and logistics demand.
Freehold Benefits: 100% freehold ownership via Ajman Real Estate Regulatory Authority (ARERA). Enables global resale, leasing, and inheritance.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2%, AED 12.6K–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. AFZ offers 0% corporate tax for QFZP on qualifying income (non-mainland revenue <5% or AED 5M).
Sustainability Features: Green warehouses, smart energy systems, aligning with Ajman Vision 2030 and SDG 11.
Investment Potential: 5–7% appreciation by 2026 (e.g., AED 630K apartment to AED 661K–677K). 80% occupancy due to port proximity. Investor visa eligible (AED 250K+).
Impact: Trade hub with retail and logistics. Tax savings (AED 12.6K–300K) and connectivity to Dubai (35 min) attract Indian and GCC investors.

2. Ajman Media City

Zone Details: Launched in 2018, this media-focused zone offers apartments, offices, and flexi-desks (AED 496K–2M, 400–2,000 sqft) with smart tech. Projects like BlueBell Residence (handover Q4 2026, 100/0 payment plan) offer urban living. Located 25 minutes from Sharjah International Airport. Average price: AED 1,240–1,500 psf.
Rental Yields: 7–9% (apartments: AED 40K–120K/year; commercial: AED 60K–150K/year), with 8% rental growth in 2025 due to media and startup demand.
Freehold Benefits: 100% freehold ownership via ARERA. Supports global resale and legacy planning.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2%, AED 9.9K–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. 0% corporate tax for QFZP on qualifying income.
Sustainability Features: Eco-friendly offices, smart lighting, aligning with Ajman Vision 2030 and SDG 11.
Investment Potential: 5–7% appreciation by 2026 (e.g., AED 496K apartment to AED 520K–534K). 80% occupancy due to cost-effective setups. Investor visa eligible (AED 250K+).
Impact: Media hub with retail and coworking spaces. Tax savings (AED 9.9K–200K) and proximity to Ajman Downtown (10 min) attract Russian and Indian investors.

3. Al Zorah

Zone Details: Designated freehold and free zone in 2008, Al Zorah offers luxury villas, apartments, and retail (AED 1.28M–29.5M, 600–5,000 sqft) with beachfront and golf course views. Projects like Sea Glints Mansions (handover Q1 2026, 30/70 payment plan) and Seaside Hills (handover Q4 2025, 50/50 payment plan) provide premium living. Located 18 minutes from Al Zorah Marina. Average price: AED 2,133–5,900 psf.
Rental Yields: 6–8% (apartments: AED 80K–200K/year; villas: AED 200K–500K/year), with 12% rental growth in 2025 due to tourism (373K hotel visitors Jan–May 2022).
Freehold Benefits: 100% freehold ownership via ARERA. Enables global resale and inheritance.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2%, AED 25.6K–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. 0% corporate tax for QFZP on qualifying income.
Sustainability Features: LEED-certified designs, green landscaping, aligning with Ajman Vision 2030 and SDG 11.
Investment Potential: 5–7% appreciation by 2026 (e.g., AED 1.28M apartment to AED 1.34M–1.37M). 85% occupancy due to luxury appeal. Investor visa eligible (AED 250K+).
Impact: Coastal hub with retail and leisure. Tax savings (AED 25.6K–1.5M) and proximity to Sharjah (20 min) attract HNWIs and European investors.

4. Ajman Boulevard

Zone Details: Launched in 2020, this commercial and residential complex offers apartments and offices (AED 591K–2.5M, 500–2,000 sqft) with smart tech and showrooms. Projects like Oasis Tower 3 (handover Q4 2027, 5/95 payment plan) feature open-space layouts. Located 20 minutes from Sharjah International Airport. Average price: AED 1,182–1,500 psf.
Rental Yields: 7–9% (apartments: AED 50K–120K/year; offices: AED 70K–150K/year), with 8% rental growth in 2025 due to SME demand.
Freehold Benefits: 100% freehold ownership via ARERA. Supports global resale and legacy planning.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2%, AED 11.8K–50K) for off-plan purchases. 5% VAT exemption on residential sales; recoverable for off-plan purchases. Commercial leases subject to 5% VAT, recoverable by tenants. 0% corporate tax for QFZP on qualifying income.
Sustainability Features: Smart energy systems, green building materials, aligning with Ajman Vision 2030 and SDG 11.
Investment Potential: 5–7% appreciation by 2026 (e.g., AED 591K apartment to AED 620K–636K). 80% occupancy due to business-friendly facilities. Investor visa eligible (AED 250K+).
Impact: Commercial hub with retail and meeting spaces. Tax savings (AED 11.8K–250K) and connectivity to Dubai (35 min) attract GCC and Indian investors.

5. Ajman Car Souq

Zone Details: Established in 2004 near Hamriya Free Zone, this automotive-focused zone offers commercial spaces and apartments (AED 500K–2M, 400–2,000 sqft) with smart tech. Located 25 minutes from Sharjah International Airport. Ongoing residential projects integrate retail and automotive services. Average price: AED 1,250–1,500 psf.
Rental Yields: 7–9% (apartments: AED 40K–100K/year; commercial: AED 60K–150K/year), with 8% rental growth in 2025 due to niche automotive demand.
Freehold Benefits: 100% freehold ownership via ARERA. Enables global resale and inheritance.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2%, AED 10K–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. 0% corporate tax for QFZP on qualifying income.
Sustainability Features: Eco-friendly designs, smart parking systems, aligning with Ajman Vision 2030 and SDG 11.
Investment Potential: 5–7% appreciation by 2026 (e.g., AED 500K apartment to AED 525K–535K). 80% occupancy due to specialized appeal. Investor visa eligible (AED 250K+).
Impact: Automotive hub with retail. Tax savings (AED 10K–200K) and proximity to Ajman Port (10 min) attract GCC and Russian investors.

6. Ajman New Venture Free Zone

Zone Details: Launched to support startups, this zone offers apartments, offices, and warehouses (AED 172K–2.5M, 400–2,500 sqft) with smart tech in the new industrial area. Projects like Kentia Residence (handover Q3 2025, 100/0 payment plan) offer affordable units. Located 20 minutes from Sharjah International Airport. Average price: AED 1,000–1,500 psf.
Rental Yields: 8–10% (apartments: AED 30K–100K/year; commercial: AED 50K–150K/year), with 10% rental growth in 2025 due to startup and e-commerce demand.
Freehold Benefits: 100% freehold ownership via ARERA. Supports global resale and legacy planning.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2%, AED 3.4K–50K) for off-plan purchases. 5% VAT exemption on residential sales; recoverable for off-plan purchases. Commercial leases subject to 5% VAT, recoverable by tenants. 0% corporate tax for QFZP on qualifying income.
Sustainability Features: Green warehouses, smart energy systems, aligning with Ajman Vision 2030 and SDG 11.
Investment Potential: 5–7% appreciation by 2026 (e.g., AED 172K apartment to AED 180K–184K). 80% occupancy due to affordability. Investor visa eligible (AED 250K+).
Impact: Startup hub with retail and logistics. Tax savings (AED 3.4K–250K) and connectivity to Dubai (35 min) attract Indian and GCC investors.

Market Trends and Outlook for 2025

Yields and Appreciation: Ajman’s free zones offer 7–10% ROI and 5–7% appreciation, driven by AED 9.5B in 2024 transactions and 25% 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 (373K hotel visitors Jan–May 2022) and infrastructure.
Freehold and Tax Environment: Freehold laws since 2008 allow 100% ownership in zones like Al Zorah and AFZ, boosting demand (60% from India, GCC, Russia). Zero personal income, capital gains, and property taxes, with RETT exemptions (2%, AED 3.4K–590K) for off-plan projects, save AED 3.4K–1.5M. 5% VAT exemption on residential sales; recoverable for off-plan purchases. 9% corporate tax on mainland profits above AED 375K; free zones 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: Ajman Port, E611 highway, and proximity to Sharjah/Dubai airports boost values by 10–15%. Amenities like Al Zorah Marina, City Centre Ajman, and Ajman Corniche drive rentals (AED 100–2,000/night).
Investor Drivers: Limited supply (3,000 units by 2026), investor visa eligibility (AED 250K+ for 2–3-year residency), and flexible payment plans (1% monthly or 30/70) fuel 60% of demand from India (40%), GCC (15%), and Russia (15%). Smart tech and sustainability (LEED certification) enhance appeal.
Risks: Oversupply (3,000 units by 2026) and AML compliance costs (AED 5K–15K) pose a 5–8% correction risk in H2 2025. Mitigated by 80% absorption, ARERA 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: ARERA ensures transparency with digital title deeds and escrow laws for off-plan sales (handover 2025–2027). 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 Ajman New Venture Free Zone (AED 172K–2.5M, 8–10% ROI) or Ajman Boulevard (AED 591K–2.5M, 7–9% ROI) for affordability, Ajman Free Zone (AED 630K–3M, 7–10% ROI) or Ajman Media City (AED 496K–2M, 7–9% ROI) for trade and media appeal, and Al Zorah (AED 1.28M–29.5M, 6–8% ROI) or Ajman Car Souq (AED 500K–2M, 7–9% ROI) for luxury and niche markets.
Entry Points: Off-plan units (1% monthly or 30/70 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 for 0% corporate tax on qualifying income. Leverage RETT exemptions (2%, AED 3.4K–590K) and recover 5% VAT (AED 3K–100K/year) via UAE FTA registration. Consult advisors like Miva Real Estate for compliance.
Process: Verify freehold status via ARERA portals. Pay 2% RETT (unless exempt) and registration fees (AED 2K–4K). Use platforms like Bayut.com, PropertyFinder.ae, or eplogoffplan.com. Required documents: passport copy, proof of funds, no UAE visa needed. Documents must be translated into Arabic and legalized.

Conclusion

In 2025, Ajman’s six free zones Ajman Free Zone, Ajman Media City, Al Zorah, Ajman Boulevard, Ajman Car Souq, and Ajman New Venture Free Zone offer 7–10% ROI and 5–7% appreciation, backed by AED 9.5B in 2024 transactions and 25% 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 3.4K–590K) and 5% VAT exemptions on residential sales maximize returns. Free zone entities provide 0% corporate tax on qualifying income, enhancing commercial investment appeal.

Sustainability features (smart tech, LEED certification) align with Ajman Vision 2030 and SDG 11. Despite a 5–8% correction risk from oversupply, 80% absorption, ARERA escrow protections, and infrastructure (Ajman Port, E611) ensure stability.

With prices from AED 172K–29.5M, tourism-driven rentals (10% growth), and diverse appeal, these zones attract Indian, GCC, and Russian investors. Ajman City Projects