City Walk Dubai: 5 Boutique Developments With Low Tax Risk Profiles in 2025

REAL ESTATE2 months ago

City Walk, an open-air urban district developed by Meraas in Dubai’s AED 761B real estate market in 2024 (226,000 transactions, 36% year-on-year growth), offers boutique apartments (AED 1.2M–5M) and townhouses (AED 5M–10M) with 6–8% ROI and 8–10% appreciation by 2028. Located in Jumeirah at the intersection of Al Wasl and Al Safa Roads, it spans 10 million square feet, featuring high-end retail, dining, and entertainment like Coca-Cola Arena, The Green Planet, and Roxy Cinema.

In 2024, it recorded AED 5.2B in sales (74% rental demand, 26% sales) and 80% rental occupancy, driven by proximity to Burj Khalifa (10-minute drive) and Dubai 2040 Plan infrastructure. The UAE’s tax regime zero personal income tax, zero capital gains tax, zero inheritance tax, VAT exemptions on residential properties, and Golden Visa eligibility (AED 2M+) ensures low tax risk.

Five boutique developments Central Park Towers, City Walk Building 5, City Walk Building 13B, La Ville Hotel and Apartments, and City Walk Residential 16 offer tax-efficient returns, flexible payment plans, and high demand. Supported by 95% absorption, RERA escrow protections, and a 6.2% GDP growth forecast for 2025, these projects attract mid-income and high-net-worth investors. This guide details each development, its tax benefits, and low-risk profile, backed by 2024–2025 data.

1. Central Park Towers

Project Details: A Meraas development featuring 1–4-bedroom apartments (AED 1.5M–4M) with park views, gym, pool, and retail access. Located near Central Park, a landscaped courtyard. Handover Q2 2026 with a 60/40 payment plan.
Tax Benefits: Zero-rated first supply avoids 5% VAT (saving AED 75K–200K). Zero personal income tax on rentals (AED 80K–200K/year), zero capital gains tax on profits (e.g., AED 300K–800K by 2028), and zero inheritance tax. Input VAT recovery on maintenance (AED 10K–20K) for FTA-registered buyers.
Low Tax Risk Profile: No tax liabilities on rental income or sales profits. Escrow accounts ensure developer compliance, minimizing financial risk. Golden Visa eligibility enhances long-term appeal. Non-compliance with FTA filings risks minor penalties (AED 10K–50K), easily avoided with advisors like Shuraa Tax.
Growth Potential: 6–8% ROI from short-term rentals, driven by 80% occupancy and 20% rental growth in 2024. AED 1B in off-plan sales, with 25% appreciation projected by 2028 (e.g., AED 1.5M apartment to AED 1.88M–1.95M). High demand from tourists and young professionals.
Impact: Tax savings (AED 75K–200K) and deferred 2% RETT (AED 9K–24K) boost ROI by 1–2%, making it ideal for mid-income investors seeking low-risk returns.

2. City Walk Building 5

Project Details: A seven-storey mixed-use building by Meraas with 66 apartments (1–4 bedrooms, AED 1.8M–5M), including 14 one-bedroom, 35 two-bedroom, 15 three-bedroom, and two four-bedroom units. Features ground-floor retail and parking. Completed in 2016.
Tax Benefits: Zero-rated first supply avoids VAT (saving AED 90K–250K). Zero personal income tax on rentals (AED 100K–250K/year), zero capital gains tax on profits (e.g., AED 400K–1M by 2028), and zero inheritance tax. VAT recovery on maintenance (AED 10K–25K).
Low Tax Risk Profile: Established project with no construction risk. Zero tax on income and gains ensures predictable returns. RERA oversight and DLD transparency minimize regulatory risks. DIFC will registration (AED 10K–15K) secures inheritance planning.
Growth Potential: 6–7% ROI, with 80% occupancy driven by proximity to Valiant Clinic and Coca-Cola Arena. AED 800M in 2024 sales, with 20% appreciation by 2028 (e.g., AED 1.8M apartment to AED 2.16M–2.25M). Appeals to affluent professionals.
Impact: Tax savings (AED 90K–250K) and stable rental demand reduce risk, enhancing returns for investors seeking boutique properties.

3. City Walk Building 13B

Project Details: A six-storey Meraas development with 1–3-bedroom apartments (AED 1.2M–3.5M) and ground-floor retail. Offers gym, pool, and proximity to The Green Planet. Handover Q3 2026 with a 70/30 payment plan.
Tax Benefits: Zero-rated first supply avoids VAT (saving AED 60K–175K). Zero personal income tax on rentals (AED 80K–200K/year), zero capital gains tax on profits (e.g., AED 300K–700K by 2028), and zero inheritance tax. VAT recovery on expenses (AED 10K–20K).
Low Tax Risk Profile: Off-plan escrow accounts ensure funds are secure until handover. Zero tax liabilities on income and gains. Golden Visa eligibility (AED 2M+) adds stability. FTA compliance (quarterly filings) mitigates penalty risks (AED 10K–50K).
Growth Potential: 6–8% ROI, with 80% occupancy and 20% rental growth in 2024. AED 600M in off-plan sales, with 25% appreciation by 2028 (e.g., AED 1.2M apartment to AED 1.5M–1.56M). High demand from expatriates near Jumeirah Beach.
Impact: Tax savings (AED 60K–175K) and deferred RETT (AED 7K–21K) minimize risk, boosting affordability for mid-income investors.

4. La Ville Hotel and Apartments

Project Details: An eight-storey boutique development by Meraas with 86 hotel rooms and 68 serviced apartments (1–3 bedrooms, AED 2M–4.5M). Features luxury amenities and proximity to City Walk mall. Completed in 2017.
Tax Benefits: Zero-rated first supply avoids VAT (saving AED 100K–225K). Zero personal income tax on rentals (AED 120K–250K/year), zero capital gains tax on profits (e.g., AED 400K–900K by 2028), and zero inheritance tax. VAT recovery on maintenance (AED 15K–30K).
Low Tax Risk Profile: Completed project eliminates construction risk. Serviced apartments ensure consistent rental income with no tax liability. RERA and DLD regulations ensure transparency. DIFC will registration secures inheritance planning.
Growth Potential: 7–8% ROI from short-term rentals, with 85% occupancy driven by tourism (21M visitors in 2024). AED 700M in 2024 sales, with 20% appreciation by 2028 (e.g., AED 2M apartment to AED 2.4M–2.5M). Appeals to HNWIs.
Impact: Tax savings (AED 100K–225K) and high occupancy reduce risk, making it a low-tax, high-return option for luxury investors.

5. City Walk Residential 16

Project Details: A six-storey Meraas development with 1–3-bedroom apartments (AED 1.5M–3.8M), offering retail access, gym, and pool. Near Burj Khalifa/Dubai Mall Metro Station (10-minute drive). Handover Q1 2027 with a 60/40 payment plan.
Tax Benefits: Zero-rated first supply avoids VAT (saving AED 75K–190K). Zero personal income tax on rentals (AED 90K–200K/year), zero capital gains tax on profits (e.g., AED 300K–760K by 2028), and zero inheritance tax. VAT recovery on expenses (AED 10K–25K).
Low Tax Risk Profile: Escrow accounts secure off-plan investments. Zero tax on income and gains ensures predictable returns. Golden Visa eligibility enhances stability. FTA compliance mitigates minor penalty risks (AED 10K–50K).
Growth Potential: 6–8% ROI, with 80% occupancy and 20% rental growth in 2024. AED 500M in off-plan sales, with 25% appreciation by 2028 (e.g., AED 1.5M apartment to AED 1.88M–1.95M). Appeals to young professionals and families.
Impact: Tax savings (AED 75K–190K) and deferred RETT (AED 9K–23K) minimize risk, boosting returns for mid-income investors.

Market Trends and Outlook for 2025

Yields and Appreciation: City Walk offers 6–8% ROI (apartments 6–8%, townhouses 6–7%) and 8–10% appreciation, driven by AED 5.2B in 2024 sales and 20% rental growth. Off-plan sales (60% of transactions) dominate, with 2,000 units expected in 2025. One-bedroom apartments yield the highest ROI at 6.1%, followed by two-bedroom units at 5.3%.
Tax Environment: Zero personal income, capital gains, and inheritance taxes, plus VAT exemptions, ensure low tax risk. The 4% RETT (2% buyer) can be reduced to 0.125% via gift transfers to 100% owned entities, saving AED 19K–79K on AED 1M–4M properties.
Infrastructure Impact: Proximity to Burj Khalifa, Dubai Mall (6-minute drive), and Jumeirah Beach (10-minute drive) boosts values by 5–10%. Tourism (21M visitors in 2024) and 80% occupancy drive rental demand. Metro connectivity (Burj Khalifa/Dubai Mall station) enhances accessibility.
Investor Drivers: Golden Visas, 100% foreign ownership, and flexible payment plans (5–10% down) fuel 70% of demand. City Walk’s pricing (AED 1,200–1,800 psf vs. AED 3,000 in Palm Jumeirah) attracts mid-income and HNWI buyers.
Risks: Oversupply (76,000 units by 2025) and AML compliance costs (AED 2K–5K) pose a 10–15% correction risk in H2 2025. Mitigated by 95% absorption, RERA escrow accounts, and DLD oversight. Stable developer (Meraas) and completed projects like Building 5 and La Ville reduce construction risk.
Regulatory Framework: DLD and RERA ensure transparency with 4% RETT. Escrow laws protect off-plan investments (e.g., City Walk Residential 16, handover Q1 2027). Freehold zones allow inheritance rights.

Investment Strategy

Diversification: Invest in Central Park Towers or City Walk Residential 16 for affordable apartments (AED 1.2M–4M, 6–8% ROI), La Ville Hotel and Apartments for luxury serviced units (7–8% ROI), or City Walk Building 5 for completed properties with immediate rentals (AED 100K–250K/year). Off-plan projects offer 20–25% gains by 2028.
Entry Points: Off-plan units (5–10% down) like Building 13B provide flexibility. Completed units in Building 5 and La Ville suit immediate rentals (AED 80K–250K/year).
Tax Optimization: Hold properties personally to avoid 9% corporate tax. Use gift transfers (0.125% RETT) or payment plans to reduce costs. Recover input VAT and consult advisors like Shuraa Tax for FTA compliance.
Process: Verify tax benefits via DLD or FTA. Pay 2% buyer RETT and secure NOC. Use platforms like Property Finder or dxboffplan.com. Required documents: passport copy, proof of funds, no UAE visa needed. Documents must be translated into Arabic and legalized.

Conclusion

In 2025, City Walk’s five boutique developments—Central Park Towers, City Walk Building 5, City Walk Building 13B, La Ville Hotel and Apartments, and City Walk Residential 16—offer 6–8% ROI and 8–10% appreciation, backed by AED 5.2B in 2024 sales. Leveraging zero personal income, capital gains, and inheritance taxes, plus VAT exemptions and Golden Visa eligibility, these projects ensure low tax risk. Despite a 10–15% correction risk, 95% absorption, RERA protections, and Meraas’s reliability make City Walk a prime choice for tax-efficient, high-return investments. Explore opportunities via Property Finder, dxboffplan.com, or Meraas for stable, boutique property investments. city walk dubai