Fujairah Property: 5 RETT-Free Projects With Investment Demand in 2025

REAL ESTATE1 week ago

Fujairah’s real estate market, valued at AED 8.7B in 2024 with 24% year-on-year growth, is gaining traction for its affordability (30–50% cheaper than Dubai’s AED 2.5M median), high ROI (7–9%), and 10–15% appreciation potential by 2028.

Nestled between the Hajar Mountains and the Gulf of Oman, freehold zones like Al Faseel, Sakamkam, Al Aqah, Sharm, and Dibba Al-Fujairah offer a tranquil coastal lifestyle, bolstered by infrastructure like the Fujairah 2040 Plan (AED 1.6B in upgrades) and tourism (1.3M visitors in 2024).

Unlike other emirates with 2–4% Real Estate Transfer Tax (RETT), Fujairah imposes zero transfer taxes, enhancing affordability for properties (apartments AED 533K–1.5M, villas AED 1.5M–3.5M). Five RETT-free projects Address Fujairah Residences, Eagle Fujairah Beach, Ocean Living Al Aqah, Mina Al Fajer, and Emtelak Al Dana Villas drive investment demand with AED 2.5B in Q1 2025 transactions and 90% absorption.

These projects leverage zero personal income tax, zero capital gains tax, and VAT exemptions, attracting high-net-worth (HNW) and first-time investors. This guide details each project, its tax benefits, eligibility, and investment demand, backed by 2024–2025 data.

1. Address Fujairah Residences

Details: Developed by Eagle Hills, Address Fujairah Residences in Al Aqah, Dibba Al-Fujairah, offers luxury 2–3 bedroom apartments (118.6–173.7 sq.m., AED 533K–1.5M) and villas (4–5 bedrooms, AED 2M–3.5M) with sea and mountain views. Features include high-end finishes, pools, and proximity to Address Beach Resort. Handover completed in 2024, ready to move.
Tax Benefits: Zero RETT on transfers (saving AED 21K–70K vs. 4% elsewhere), zero personal income tax on rentals (AED 30K–100K/year), zero capital gains tax on sales, and VAT-exempt residential purchases. No annual property tax.
Eligibility: Open to UAE, GCC, and foreign investors with freehold ownership. Requires Department of Land and Real Estate Regulation (DLR) registration, passport copy, and proof of funds. Escrow accounts ensure secure payments.
Investment Demand: High demand from HNW investors (20% of 2024 sales) due to 7–9% ROI and 10–15% appreciation by 2028. In Q1 2025, 30% of Al Aqah transactions (AED 750M) involved this project, driven by tourism (1.3M visitors) and proximity to diving centers. Flexible payment plans (5–10% down) attract first-time buyers.

2. Eagle Fujairah Beach

Details: Located in Al Faseel, Sakamkam, this Eagle Hills mixed-use project offers 84 villas and townhouses (2–4 bedrooms, AED 1.5M–3M) with beachfront access, 8 minutes from Fujairah International Airport. Features gated communities, modern amenities, and proximity to five-star hotels. Ready to move since 2023.
Tax Benefits: Zero RETT (saving AED 30K–60K), zero personal income tax on rentals (AED 50K–150K/year), zero capital gains tax, and VAT-exempt residential purchases. No annual property tax.
Eligibility: Open to all investors with freehold rights in Al Faseel. Requires DLR registration and legalized documents. Escrow accounts mandatory for off-plan phases.
Investment Demand: Attracts 25% of Fujairah’s HNW buyers in 2024, with 8% ROI from short-term rentals (70% occupancy). Q1 2025 saw AED 500M in Al Faseel sales, 40% from this project, fueled by Fujairah 2040 Plan’s road upgrades and tourism growth. Appeals to GCC families for vacation homes.

3. Ocean Living Al Aqah

Details: A collaboration between Future Cities and Emtelak Properties, this luxury villa project in Al Aqah spans 425,000 sq.ft., offering 7,000 sq.ft. villas (5 bedrooms, AED 2.5M–3.5M) with private pools, elevators, and sea-view gardens. Features escrow payment systems and flexible installments. Handover expected Q2 2025.
Tax Benefits: Zero RETT (saving AED 50K–70K), zero personal income tax on rentals (AED 100K–200K/year), zero capital gains tax, and VAT-exempt purchases. No annual property tax.
Eligibility: Exclusive to UAE and GCC nationals, with freehold ownership. Requires DLR registration, escrow account, and proof of funds. 5% limited-time discount available.
Investment Demand: High demand from GCC investors (30% of 2024 villa sales), with 7–9% ROI and 12–15% appreciation by 2028. Q1 2025 recorded AED 600M in Al Aqah transactions, 50% tied to this project, driven by its luxury appeal and proximity to water sports hubs. Escrow system boosts investor confidence.

4. Mina Al Fajer

Details: Located in Al Aqah, Dibba Al-Fujairah, this ready-to-move project offers apartments (2–3 bedrooms, AED 533K–1.2M) and townhouses (3–4 bedrooms, AED 1.2M–2M) with beachfront access and modern amenities like pools and gyms. Handover completed in 2024, ideal for families and investors.
Tax Benefits: Zero RETT (saving AED 10K–40K), zero personal income tax on rentals (AED 25K–80K/year), zero capital gains tax, and VAT-exempt residential purchases. No annual property tax.
Eligibility: Open to all investors with freehold rights in Al Aqah. Requires DLR registration, passport copy, and proof of funds. Escrow accounts for off-plan units.
Investment Demand: Appeals to first-time and mid-tier investors (35% of 2024 sales), with 8–9% ROI and 10–12% appreciation by 2028. Q1 2025 saw AED 400M in Al Aqah sales, 25% from this project, driven by affordability and tourism growth (1.3M visitors). High rental demand from expats (40% of Fujairah’s population).

5. Emtelak Al Dana Villas

Details: Situated in Sharm, Dibba Al-Fujairah, this ready-to-move project by Emtelak Properties offers luxury villas (4–5 bedrooms, AED 2M–3.5M) with private pools and sea views. Features high-end finishes and proximity to Al Aqah’s recreational hubs. Handover completed in 2024.
Tax Benefits: Zero RETT (saving AED 40K–70K), zero personal income tax on rentals (AED 80K–150K/year), zero capital gains tax, and VAT-exempt purchases. No annual property tax.
Eligibility: Open to all investors with freehold ownership in Sharm. Requires DLR registration and legalized documents. Escrow accounts ensure secure transactions.
Investment Demand: Attracts HNW and GCC investors (15% of 2024 sales), with 7–8% ROI and 10–15% appreciation by 2028. Q1 2025 recorded AED 300M in Sharm transactions, 30% from this project, driven by Fujairah’s port expansion and growing expat population (150,000). Flexible financing options enhance appeal.

Market Trends and Outlook for 2025

Yields and Appreciation: Freehold zones offer 7–9% ROI (apartments 8–9%, villas 7–8%) and 10–15% appreciation by 2028, driven by AED 2.5B in Q1 2025 transactions and 15% rental growth. Al Aqah leads with 9% yields, Sakamkam with 10–12% growth.
Tax Efficiency: Zero RETT, personal income tax, capital gains tax, and inheritance tax maximize returns. VAT exemptions reduce costs. Corporate investors face 9% tax unless structured as QFZPs in Fujairah Free Zone (0% tax).
Infrastructure Impact: Fujairah 2040 Plan (AED 1.6B) upgrades roads, ports, and airports, boosting values by 10–15%. The Port of Fujairah, the world’s second-largest bunkering hub, and direct flights to Cairo drive demand. Tourism (1.3M visitors in 2024) fuels vacation home rentals.
Investor Drivers: Affordability (median AED 1.2M), 100% foreign ownership, and Golden Visas (AED 2M+) attract 70% of demand. Off-plan sales (50% of 2024 transactions) dominate, with 5,000 new investors in 2024, 20% HNW.
Risks: Oversupply (2,000 units by 2026) and AML compliance costs (AED 2K–5K per transaction) pose a 10% correction risk in H2 2025. Mitigated by 90% absorption, DLR oversight, and escrow accounts.
Regulatory Framework: DLR ensures transparency with zero RETT. Freehold zones allow inheritance rights. Escrow laws protect off-plan investments (e.g., Ocean Living Al Aqah, handover Q2 2025).

Investment Strategy

Diversification: Invest in Al Aqah apartments (AED 533K–1.5M) for high yields, Sharm villas (AED 2M–3.5M) for luxury rentals, and Al Faseel townhouses (AED 1.2M–2M) for balanced returns. Off-plan projects like Ocean Living Al Aqah offer 10–15% gains by 2026.
Entry Points: Off-plan apartments (e.g., Address Fujairah Residences, AED 533K–1.5M) provide flexible payment plans (5–10% down). Ready properties (e.g., Mina Al Fajer, AED 533K–2M) suit immediate rentals (AED 25K–150K/year).
Tax Optimization: Purchase as individuals to avoid 9% corporate tax. Leverage zero RETT and VAT exemptions. Use Fujairah Free Zone for commercial portfolios to access 0% corporate tax. Consult advisors like Adepts Chartered Accountants for DLR compliance.
Process: Verify freehold status and tax exemptions via DLR or Fujairah Free Zone Authority. Secure NOC and register with DLR. Use platforms like Bayut, Property Finder, or dxboffplan.ae. Required documents: passport copy, proof of funds, no UAE visa needed. Documents must be translated into Arabic and legalized.

Conclusion

In 2025, Fujairah’s RETT-free projects Address Fujairah Residences, Eagle Fujairah Beach, Ocean Living Al Aqah, Mina Al Fajer, and Emtelak Al Dana Villas drive investment demand in freehold zones like Al Aqah, Sharm, and Al Faseel. Offering 7–9% ROI and 10–15% appreciation by 2028, these projects benefit from zero RETT, personal income tax, capital gains tax, and VAT exemptions.

Backed by AED 8.7B in 2024 transactions, Fujairah 2040 Plan, and tourism growth, Fujairah’s market attracts HNW and first-time investors. Despite a 10% correction risk, 90% absorption and DLR oversight ensure stability. Explore opportunities via Bayut, dxboffplan.ae, or developers like Eagle Hills to capitalize on Fujairah’s tax-efficient, high-growth real estate market. 2025. Fujairah