Dubai Real Estate: 6 Cross-Emirate Projects Targeting Holiday Home Buyers in 2025

REAL ESTATE1 month ago

Dubai’s real estate market continues to thrive in 2025, with AED 526B in transactions and 217,000 deals in 2024, reflecting 38% volume growth and 27% value growth. Delivering 6–9% rental yields—surpassing London (3–4%) and New York (2–3%)—and 19.43% YoY apartment price growth (AED 1,558/sq.ft. primary market), Dubai drives demand for holiday homes.

Short-term rentals, projected to rise 18% in 2025, are fueled by 20M tourists, a 3.92M population, and infrastructure like Etihad Rail, Metro Blue Line, and Al Maktoum International Airport. Six cross-emirate projects Palm Jebel Ali (Dubai), Al Marjan Island (Ras Al Khaimah), Saadiyat Grove (Abu Dhabi), Maryam Island (Sharjah), Al Zorah (Ajman), and Ocean Living Al-Aqah (Fujairah) target holiday home buyers with luxury waterfront properties featuring smart home systems (40% of units) and green certifications (LEED Silver, Estidama Pearl).

Aligned with the Dubai 2040 Urban Master Plan and UAE’s Net Zero 2050 strategy, these projects leverage investor-friendly policies (Golden Visa for AED 2M+, 100% foreign ownership, no property taxes) to attract HNWIs from 120+ nationalities. This guide details each project’s features, holiday home appeal, and investment potential, supported by 2024 data and 2025 trends.

1. Palm Jebel Ali (Dubai)

Real Estate Location: Southern Dubai, 30-minute drive to Dubai Marina via E11.
Developer: Nakheel, Dubai-based master developer.
Green Certifications: Targeting LEED Silver, Estidama Pearl.
Features: A 13.4 sq.km artificial island, twice the size of Palm Jumeirah, with 80 hotels, resorts, and 5–7-bedroom luxury villas (13,993–19,375 sq.ft.). Includes smart home automation (IoT-enabled lighting, security), solar panels (10% energy savings), private beaches, water parks, and 110km of coastline. Offers retail, dining, and beach clubs.
Holiday Home Appeal: Ideal for affluent tourists seeking resort-style living, with proximity to Jebel Ali Beach (5-minute walk) and Al Maktoum International Airport (20-minute drive). High demand for short-term rentals (AED 200K–600K/year) due to 20M annual visitors and luxury amenities like marinas and water sports.
Regional Impact: Enhances tourism in Abu Dhabi (45-minute drive via E11) and Sharjah (60-minute via E311), with trade synergy via Jebel Ali Port (32% of UAE’s FDI). Complements Ras Al Khaimah’s Al Marjan Island for waterfront tourism.
Price Range: Villas AED 10M–30M (AED 1,500–2,500/sq.ft.).
Investment Potential: 6–8% yields, 10–15% appreciation by 2027. Golden Visa eligible. Offers 60/40 post-handover plan (40% over 4 years). High ROI for holiday rentals due to tourism-driven demand.
Status: Under construction, completion expected Q4 2027.

2. Al Marjan Island (Ras Al Khaimah)

Location: Ras Al Khaimah, 60-minute drive from Dubai via E311/E611.
Developer: Al Marjan Island LLC, with Wynn Resorts and Anantara.
Green Certifications: Targeting LEED Silver, Estidama Pearl.
Features: Four islands spanning 2.7M sq.m., with 7.8km of beaches, luxury residences (1–4-bedroom apartments, villas, AED 2M–20M), and hotels like Wynn Al Marjan (Q4 2026, casino-integrated). Includes smart home systems (AI-driven controls), solar panels (10% energy savings), and amenities like marinas, spas, and golf courses.
Holiday Home Appeal: Attracts tourists with casino gaming, beachfront living, and proximity to Al Hamra Village (10-minute drive). Short-term rental demand (AED 80K–300K/year) is driven by 1.2M visitors and events like RAK New Year’s Eve.
Regional Impact: Synergizes with Dubai’s Palm Jebel Ali for tourism, drawing Dubai HNWIs for affordable luxury. Enhances Fujairah’s coastal appeal (90-minute drive via E18) and Sharjah’s Maryam Island (45-minute via E311). Etihad Rail (Q4 2025) boosts connectivity.
Price Range: AED 2M–20M (AED 1,200–2,500/sq.ft.).
Investment Potential: 7–9% yields, 10–15% appreciation by 2026. Golden Visa eligible. Offers 70/30 post-handover plan (30% over 3 years). High rental demand from tourism and expatriates.
Status: Under construction, phased delivery through 2026.

3. Saadiyat Grove (Abu Dhabi)

Location: Saadiyat Island, Abu Dhabi, 45-minute drive from Dubai via E11.
Developer: Aldar Properties, Abu Dhabi-based leader.
Green Certifications: Targeting LEED Silver, Estidama Pearl.
Features: A mixed-use waterfront development with 1–4-bedroom apartments and villas (AED 2M–15M), smart home systems (IoT-enabled thermostats, security), and solar panels (12% energy savings). Offers cultural amenities (Louvre, Guggenheim), beach clubs, and retail.
Holiday Home Appeal: Appeals to cultural tourists and HNWIs with proximity to Saadiyat Beach (5-minute walk) and cultural hubs (10-minute drive). Short-term rentals (AED 80K–300K/year) benefit from 2.5M visitors and events like Abu Dhabi Art.
Regional Impact: Attracts Dubai investors (45-minute drive) for stable yields, complementing Palm Jebel Ali’s luxury appeal. Supports Sharjah’s cultural tourism (60-minute drive via E11) and Fujairah’s coastal growth via trade links. Etihad Rail enhances access.
Price Range: AED 2M–15M (AED 1,500–3,000/sq.ft.).
Investment Potential: 5–7% yields, 8–12% appreciation by 2026. Golden Visa eligible. Offers 60/40 post-handover plan (40% over 4 years). Strong rental demand from cultural and beach tourism.
Status: Under construction, completion expected Q4 2026.

4. Maryam Island (Sharjah)

Location: Sharjah, 20-minute drive from Dubai via E311.
Developer: Sharjah Holding, Sharjah-based.
Green Certifications: Targeting LEED Silver, Estidama Pearl.
Features: A 3.3M sq.ft. waterfront community with 1–3-bedroom apartments and penthouses (AED 1M–10M), smart home automation (AI-driven lighting, security), and solar panels (10% energy savings). Includes beaches, retail, dining, and a waterpark.
Holiday Home Appeal: Draws families and tourists with affordable luxury and proximity to Al Khan Beach (5-minute walk) and Sharjah Aquarium (10-minute drive). Short-term rentals (AED 60K–200K/year) are boosted by 1.5M visitors and Sharjah’s cultural events.
Regional Impact: Attracts Dubai buyers for cost-effective holiday homes (40% below Dubai prices) and Ajman investors (15-minute drive via E11) for yields. Complements Ras Al Khaimah’s tourism via E311 connectivity (45-minute drive). Supports Fujairah’s coastal growth.
Price Range: AED 1M–10M (AED 1,200–2,000/sq.ft.).
Investment Potential: 6–8% yields, 8–12% appreciation by 2026. Golden Visa eligible. Offers 70/30 post-handover plan (30% over 3 years). High rental demand from tourists and expatriates.
Status: Under construction, phased delivery through 2025.

5. Al Zorah (Ajman)

Location: Ajman, 30-minute drive from Dubai via E311.
Developer: Al Zorah Development, Ajman-based.
Green Certifications: Targeting LEED Silver, Estidama Pearl.
Features: A 5.4M sq.m. waterfront community with 1–4-bedroom apartments, villas, and penthouses (AED 2M–10M), smart home systems (IoT-enabled controls), and solar panels (10% energy savings). Offers an 18-hole golf course, marinas, and beachfront dining.
Holiday Home Appeal: Appeals to families and tourists with serene beaches and proximity to Al Zorah Natural Reserve (5-minute walk). Short-term rentals (AED 60K–200K/year) benefit from 1.5M visitors and golf tourism.
Regional Impact: Draws Dubai investors for affordability (50% below Dubai) and Sharjah buyers (15-minute drive via E11) for yields. Synergizes with Ras Al Khaimah’s Al Marjan Island (45-minute drive via E311) and Fujairah’s coastal projects via tourism links.
Price Range: AED 2M–10M (AED 1,000–1,800/sq.ft.).
Investment Potential: 6–8% yields, 8–10% appreciation by 2026. Golden Visa eligible. Offers 70/30 post-handover plan (30% over 3 years). Strong rental demand from tourists and expatriates.
Status: Under construction, completion expected Q4 2025.

6. Ocean Living Al-Aqah (Fujairah)

Location: Fujairah, 90-minute drive from Dubai via E99/E84.
Developer: Emtelak Properties, Fujairah-based.
Green Certifications: Targeting LEED Silver, Estidama Pearl.
Features: A waterfront development with 3–5-bedroom villas and apartments (AED 2M–10M), smart home systems (AI-driven security, lighting), and solar panels (10% energy savings). Offers private beaches, water sports, and proximity to Hajar Mountains.
Holiday Home Appeal: Attracts adventure and nature tourists with Al-Aqah Beach (5-minute walk) and snorkeling/diving sites (10-minute drive). Short-term rentals (AED 60K–150K/year) are driven by 1M visitors and eco-tourism.
Regional Impact: Draws Dubai HNWIs for affordable waterfront homes and Ras Al Khaimah investors (90-minute drive via E18) for tourism synergy. Complements Sharjah’s Maryam Island and Ajman’s Al Zorah via coastal appeal. Fujairah Port and Etihad Rail enhance trade and access.
Price Range: AED 2M–10M (AED 1,200–2,000/sq.ft.).
Investment Potential: 7–9% yields, 8–12% appreciation by 2026. Golden Visa eligible. Offers 70/30 post-handover plan (30% over 3 years). High rental demand from eco-tourists and expatriates.
Status: Under construction, completion expected Q4 2026.

Market Trends and Outlook for 2025

Short-Term Rental Demand: Projected 18% growth in short-term rentals (up to 6 months) in 2025, driven by Airbnb and tourism (20M visitors). Prime areas like Palm Jebel Ali and Al Marjan Island offer 6–9% yields, with Fujairah and Ajman at 6–8%.
Capital Appreciation: Dubai and Ras Al Khaimah lead with 10–15% appreciation, followed by Abu Dhabi (8–12%), Sharjah (8–12%), Ajman (8–10%), and Fujairah (8–12%). Off-plan holiday homes offer 15–30% gains by completion (2025–2028).
Infrastructure Impact: Etihad Rail (Q4 2025) and E11/E311 reduce travel times (Dubai-Abu Dhabi: 45 minutes, Dubai-Sharjah: 20 minutes), boosting property values by 10–15%. Al Maktoum Airport’s expansion (150M passengers by 2035) enhances Dubai South and Palm Jebel Ali.
Holiday Home Drivers: 20M tourists, 10.3M UAE population, and 6.2% GDP growth fuel demand. Smart homes (40% of units) and green certifications (500 LEED buildings by 2025) attract eco-conscious buyers. Golden Visa and 3.9–4.25% mortgages drive 70% foreign investment.
Risks: Oversupply (73,000 units in 2025, 300,000 by 2028) and delays (6–18 months) pose a 15% correction risk in H2 2025. Mitigated by 85% absorption, 65% cash transactions, and developer track records (Emaar, Nakheel, Aldar).

Renting vs. Buying Holiday Homes

Renting:
- Costs: Studios (AED 60K–80K/year in Dubai, AED 30K–50K in Ajman), 3-bedroom (AED 150K–400K in Dubai, AED 80K–150K in Sharjah).
- Advantages: Flexibility for short-term visitors (1–6 months), no maintenance, three-year rent freeze (September 2024).
- Drawbacks: Misses 8–15% appreciation and Golden Visa benefits.
Buying:
- Advantages: 5–9% yields, 8–15% growth, utility savings (10–15%), Golden Visa eligibility. Waterfront and smart features boost rental and resale value.
- Drawbacks: Initial costs, delay risks. Mitigated by post-handover plans (e.g., AED 300K down payment for AED 1.5M property) and tourism-driven demand.
Strategy: Rent in Dubai for short-term stays; buy in Al Zorah or Ocean Living Al-Aqah for affordability and yields, Palm Jebel Ali or Saadiyat Grove for luxury and appreciation.

Conclusion

The six cross-emirate projects—Palm Jebel Ali (Dubai), Al Marjan Island (Ras Al Khaimah), Saadiyat Grove (Abu Dhabi), Maryam Island (Sharjah), Al Zorah (Ajman), and Ocean Living Al-Aqah (Fujairah)—are prime targets for holiday home buyers in 2025, offering 6–9% yields and 8–15% appreciation.

Fueled by 20M tourists, infrastructure (Etihad Rail, E11), and policies (Golden Visa, no taxes), these projects align with the Dubai 2040 Urban Master Plan and Net Zero 2050. Dubai and Ras Al Khaimah lead for luxury and tourism synergy, while Sharjah, Ajman, and Fujairah offer affordable waterfront options. Despite a 15% correction risk, strong absorption (85%) and developer reputations ensure robust ROI. Real Estate Cross-Emirate Projects