Ajman Property: 6 Affordable City Villas With Reduced Transfer Taxes

REAL ESTATE2 months ago

Ajman, the smallest emirate in the UAE, is rapidly becoming a hotspot for affordable real estate, particularly for mid-income buyers seeking spacious villas. In 2025, the emirate’s property market continues to thrive, with transactions reaching AED 9 billion in the first half of 2024, a 33% increase from the previous year, according to the Ajman Department of Land and Real Estate Regulation.

Ajman’s tax-friendly environment, with no annual property taxes, no capital gains tax, and reduced transfer fees of 2% (down from 4% in some cases due to developer promotions), makes it a compelling choice for investors and homebuyers.

The emirate’s freehold ownership laws for foreigners, strategic location 30 minutes from Dubai, and infrastructure projects like metro expansions by 2026 enhance its appeal. This article highlights six affordable villa projects in Ajman, offering tax efficiency, high rental yields of 7-10%, and capital appreciation potential of 8-10% by 2026.

Why Ajman Villas Are a Smart Choice

Ajman’s villas offer unmatched affordability, with prices 30-50% lower than Dubai’s, starting as low as AED 500,000 for spacious 3-bedroom homes. The emirate’s proximity to Dubai and Sharjah, via Sheikh Mohammed Bin Zayed Road (E311), suits commuters, while its serene coastal lifestyle and amenities like Ajman Corniche attract families.

The absence of capital gains tax and annual property taxes, combined with reduced transfer fees (often 1-2% through developer incentives), maximizes returns. Projects in high-demand areas like Al Yasmeen, Al Zahia, and Al Rawda benefit from Ajman Vision 2030’s infrastructure growth, including new roads and public transport, driving property value increases. Below are six affordable villa projects offering tax efficiency and strong investment potential.

1. AZHA Community – Al Amerah

AZHA Community, developed by Emirates Properties, is Ajman’s first gated community in Al Amerah, near Sheikh Mohammed Bin Zayed Road. Launched in 2025, it offers 3 to 5-bedroom villas starting at AED 1.2 million, with 3,000-4,500 square feet of space. Features include private gardens, pools, and shared amenities like gyms and parks. Rental yields are projected at 7-9%, with 3-bedroom villas fetching AED 80,000-100,000 annually. Developers cover 50% of the 2% transfer fee, reducing costs to 1%. With Al Amerah’s proximity to Dubai (40 minutes) and a projected 8-10% capital appreciation by 2026, AZHA is ideal for families and investors.

2. Al Yasmeen 1 – Al Zahia

Located in the tranquil Al Yasmeen neighborhood, this project by Al Zorah Development offers 3 to 6-bedroom villas starting at AED 800,000, with sizes from 2,500-5,000 square feet. Known for its lush greenery and proximity to Ajman University, it appeals to families and academics. Rental yields range from 7-10%, with 4-bedroom villas leasing for AED 90,000-120,000 annually. The 2% transfer fee is often split with developers, and some off-plan units waive it entirely, dropping costs to 0-1%. With Al Zahia topping transaction volumes in 2024 (AED 2 billion), villas are expected to appreciate by 8-9% by 2026.

3. Al Rawda Villas – Al Rawda

Al Rawda, a family-friendly area near Sharjah, hosts this project by GJ Properties, offering 3 to 5-bedroom villas starting at AED 700,000. With 2,800-4,000 square feet, these villas include private parking and gardens, ideal for small families. Rental yields average 8-10%, with 3-bedroom units renting for AED 70,000-90,000 annually. Developers often cover the full 2% transfer fee for off-plan purchases, reducing buyer costs to zero. Al Rawda’s access to UAE highways and planned metro connectivity supports 8-10% price growth by 2026, making it a top choice for budget-conscious buyers.

4. Al Humaid City – Al Hamidiya

Al Humaid City, near Sheikh Maktoum Bin Rashid Street, offers 4 to 7-bedroom villas starting at AED 1 million, with 3,000-6,000 square feet. Developed by a local consortium, it features community pools, parks, and proximity to Ajman Police HQ. Rental yields of 7-9% are driven by demand from families, with 4-bedroom villas leasing for AED 85,000-110,000 annually. Promotional offers in 2025 reduce transfer fees to 1%, and the absence of capital gains tax boosts returns. With Al Hamidiya’s steady demand and 9% price growth in 2024, villas are projected to appreciate by 8-10% by 2026.

5. Ajman Uptown – Al Zahraa

Ajman Uptown, a master-planned community in Al Zahraa, offers 3 to 5-bedroom villas starting at AED 900,000, with sizes from 2,700-4,500 square feet. Developed by Sweet Homes, it includes eco-friendly features like solar-prepared roofs and shared facilities like gyms and playgrounds. Rental yields range from 7-9%, with 3-bedroom villas fetching AED 75,000-100,000 annually. Off-plan buyers benefit from a 1% transfer fee, split with developers. With Al Zahraa’s proximity to Ajman Corniche and 10% price growth in 2024, capital appreciation is forecast at 8-10% by 2026.

6. Al Zorah Seaside Hills – Al Zorah

Al Zorah Seaside Hills, located in the beachfront Al Zorah City, offers 4 to 6-bedroom villas starting at AED 1.5 million, with 3,500-6,000 square feet. Developed by Al Zorah Development, it features green landscaping, private pools, and access to a golf course. Rental yields of 6-8% are supported by tourism demand, with villas leasing for AED 100,000-150,000 annually. Transfer fees are reduced to 1% for early buyers, and the project’s freehold status attracts expatriates. With Al Zorah’s luxury appeal and 8% price growth in 2024, villas are expected to appreciate by 8-10% by 2026.

Tax Advantages and Financial Considerations

Ajman’s tax structure enhances villa investments:

No annual property taxes, ensuring full retention of rental income (minus a 2% municipal tax for expatriates).
No capital gains tax, maximizing sale profits.
Reduced transfer fees of 1-2%, often partially or fully covered by developers, compared to Dubai’s 4%.
VAT exemptions or zero-rating on residential properties for first sales within three years.

Additional costs include AED 2,000-4,000 registration fees and 5% VAT on furnishings for rentals. For U.S. investors, income and gains must be reported to the IRS, but deductions can reduce liability. Off-plan villas offer flexible payment plans (10-20% down), but buyers should verify developer reliability through the Ajman Real Estate Regulatory Agency (ARRA). High rental demand, with 10% yields projected for 2025, and infrastructure growth ensure strong returns.

Why 2025 Is the Time to Buy

Ajman’s real estate market is booming, with a 29% increase in transactions in Q1 2025 (AED 1.5 billion) and a projected 10% rise in villa prices by 2026. Freehold ownership, reduced transfer fees, and proximity to Dubai drive demand, while projects like the Ajman International Airport expansion (2 million passengers annually) boost connectivity. These six villa projects offer affordability, high yields, and tax efficiency, making Ajman a top investment destination. Ajman