Ajman Real Estate: 6 Mixed-Use Developments Offering Tax Incentives in 2025

REAL ESTATE2 months ago

Ajman, the smallest UAE emirate, is emerging as a dynamic real estate hub in 2025, driven by affordability, strategic location, and investor-friendly tax policies. In 2024, Ajman recorded AED 20.5 billion in transactions across 14,628 deals, a 21% increase from 2023, per the Department of Land and Real Estate Regulation. The emirate’s tax advantages no capital gains tax, no annual property taxes, and a 2% transfer fee (often split or waived) combined with full foreign ownership and high rental yields of 8-10% make it a prime investment destination.

Mixed-use developments, blending residential, commercial, and retail spaces, align with Ajman Vision 2030’s focus on sustainable urban growth. Free zones like Ajman Free Zone offer 0% corporate tax for qualifying businesses, per Ministerial Decision No. 301 of 2024, enhancing commercial investment appeal. This article highlights six mixed-use developments in Ajman, leveraging tax incentives and projecting 8-10% capital appreciation by 2026.

Why Ajman’s Tax Incentives Drive Investment

Ajman’s tax framework supports investors with no capital gains or property taxes, ensuring full retention of sale profits and rental income (minus a 2% municipal rental fee for expatriates). The 2% transfer fee, often developer-subsidized, is lower than Dubai’s 4%. Residential properties are zero-rated for VAT on first sales within three years, while commercial spaces incur 5% VAT, with input VAT recovery for businesses, per the Federal Tax Authority.

Free zones provide 0% corporate tax, ideal for retail and office leasing, and the UAE residency visa for investments above AED 750,000 enhances appeal for foreign investors. Ajman’s proximity to Dubai (30-40 minutes) and infrastructure projects, like the planned Ajman International Airport and metro expansions, drive demand, per Oxford Business Group. Below are six mixed-use developments offering tax-efficient opportunities.

1. Ajman Creek Towers – Al Bustan

Ajman Creek Towers, developed by Aqaar Properties, is a mixed-use project featuring 1,875 residential apartments, retail shops, and office spaces starting at AED 500,000, with handover set for December 2026. Located near Ajman Corniche, it offers 8-10% rental yields (AED 40,000-60,000 annually for one-bedroom units), driven by tourism and proximity to Dubai International Airport (25 minutes). The 2% transfer fee, often waived, and no capital gains tax maximize returns. A 60/40 payment plan and free zone proximity (Ajman Free Zone) offer 0% corporate tax for commercial tenants. A 10% price increase in Al Bustan in 2024 projects 8-10% appreciation by 2026, per Gulf News.

2. Ajman One Phase 2 – Al Jurf

Ajman One Phase 2, by Aqaar Properties, is a mixed-use development in Al Jurf with 1,339 residential units across four towers, retail spaces, and offices, starting at AED 450,000. Handover is planned for Q3 2025. Located near City Centre Ajman, it yields 8-10% rentals (AED 35,000-55,000 annually for one-bedroom units). Full foreign ownership, a 2% transfer fee (often split), and no property taxes ensure tax efficiency. A 50/50 payment plan lowers entry costs, and proximity to Ajman Free Zone supports corporate tax benefits. A 12% price growth in Al Jurf in 2024 projects 8-10% appreciation by 2026, per Miva Real Estate.

3. Biltmore Residences – Al Yasmeen

Biltmore Residences, by GJ Properties, is a mixed-use project in Al Yasmeen, offering apartments, retail, and commercial spaces starting at AED 400,000, with completion in Q2 2026. Its location near Sheikh Mohammed Bin Zayed Road drives 8-9% rental yields (AED 35,000-50,000 annually for studios), per Zawya. The 2% transfer fee, often developer-covered, and no capital gains tax reduce costs. A 70/30 payment plan and Ajman Free Zone’s 0% corporate tax benefit commercial investors. Al Yasmeen’s high transaction volume in 2024 (AED 6 billion) projects 8-10% appreciation by 2026, per Ajman Real Estate Regulatory Department.

4. AZHA Community – Al Amerah

AZHA Community, by Emirates Properties, is Ajman’s first gated mixed-use community in Al Amerah, offering 1,800 villas, townhouses, retail, and office spaces starting at AED 1.2 million, with handover in Q1 2026. Featuring pools, gyms, and parks, it yields 7-9% rentals (AED 80,000-120,000 annually for villas), per Miva Real Estate. Full foreign ownership, a 2% transfer fee, and no property taxes enhance returns. A 60/40 payment plan and proximity to Ajman Free Zone optimize corporate tax for businesses. Al Amerah’s AED 155 million mortgage value in 2024 projects 8-10% appreciation by 2026, per AGBI.

5. Gateway in Porto Al Zorah – Al Zorah

Gateway in Porto Al Zorah, by Al Zorah Development Company, is a beachfront mixed-use project offering 157 apartments, retail, and leisure facilities starting at AED 685,000, with completion in 2026. Located near Al Zorah Golf Club, it yields 7-9% rentals (AED 50,000-70,000 annually for one-bedroom units), per Bayut. The 2% transfer fee, no capital gains tax, and VAT exemptions on residential sales ensure tax efficiency. A 50/50 payment plan and free zone benefits support commercial investors. Al Zorah’s 10% price growth in 2024 projects 8-10% appreciation by 2026, per MyBayut.

6. ONE678 Residences – Al Zahia

ONE678 Residences, by GJ Properties, is a mixed-use development in Al Zahia, offering apartments, retail, and offices starting at AED 420,000, with handover in Q4 2025. Its proximity to Ajman University drives 8-10% rental yields (AED 35,000-55,000 annually for one-bedroom units), per Zawya. The 2% transfer fee, often split, and no property taxes minimize costs. A 65/35 payment plan and Ajman Free Zone’s 0% corporate tax benefit commercial spaces. Al Zahia’s high transaction volume in 2024 projects 8-10% appreciation by 2026, per Ajman Real Estate Regulatory Department.

Tax Incentives and Investment Considerations

Ajman’s tax incentives include:

No capital gains or annual property taxes, retaining full sale profits and rental income (minus a 2% municipal rental fee).
Transfer fees of 2%, often split or waived, compared to Dubai’s 4%.
VAT exemptions or zero-rating on residential properties for first sales within three years; 5% VAT on commercial spaces, with input VAT recovery.
Free zone benefits via Ajman Free Zone, offering 0% corporate tax for qualifying retail and office leasing businesses.
UAE residency visa for AED 750,000+ investments, lower than Dubai’s AED 2 million threshold.

For U.S. investors, rental income and gains are reportable to the IRS, but double taxation agreements and deductions reduce liability. Off-plan projects offer 20-30% lower entry prices and flexible payment plans (10-20% down), but buyers should verify developers via the Ajman Real Estate Regulatory Department. Additional costs include AED 2,000-4,000 registration fees and 5% VAT on furnishings for rentals. Ajman’s 26.6% transaction growth in Q1 2024 and infrastructure developments ensure stable demand, per improperties.ae.

Why Invest in Ajman in 2025

Ajman’s real estate market is projected to grow 10% in 2025, driven by affordability (30-50% cheaper than Dubai), high rental yields (8-10%), and infrastructure projects like the Ajman International Airport and metro expansions, per Oxford Business Group. Mixed-use developments cater to diverse needs, blending residential, commercial, and retail spaces, while tax incentives and freehold ownership attract foreign investors (AED 6 billion in foreign investment in H1 2024). These six projects offer low entry costs, tax efficiency, and strong returns, making Ajman a top investment hub. ajman Real Estate