Fujairah Property: 6 Mixed-Use Developments With Tax Relief Potential in 2025

REAL ESTATE1 week ago

Fujairah’s AED 15.4B real estate market in 2024 (20% YoY growth, 1,500+ transactions) offers apartments (AED 300K–3M) and villas (AED 800K–8M) with 6–9% ROI and 5–8% appreciation by 2029. The 2018 freehold law allows 100% ownership for all nationalities in designated zones, driving demand (35% from GCC, India, Europe).

Tax-friendly models include zero personal income, capital gains, or property taxes, with Real Estate Transaction Tax (RETT) exemptions for first-time buyers and select off-plan projects (saving AED 6K–80K).

Six mixed-use developments Fujairah Beachfront, Al Taif Business Centre, Mina Al Fujairah, Fujairah Corniche Towers, Masafi Eco Village, and Dibba Waterfront offer apartments, villas, retail, and office spaces (AED 600K–8M) with smart technology, waterfront or mountain views, and incentives like fee waivers.

These align with Fujairah’s Vision 2040, targeting 1M tourists by 2030. This guide analyzes these projects, detailing rental yields, freehold benefits, tax incentives, sustainability features, and investment potential, supported by 2024–2025 data.

1. Fujairah Beachfront (Al Fujairah City)

Project Details: Eagle Hills’ coastal project offers 1–3-bedroom apartments and townhouses (AED 800K–3M, 600–2,000 sqft) with retail, beach access, and smart tech. Located 8 minutes from Fujairah International Airport, near Fujairah Corniche. Handover Q3 2026, with 50/50 payment plans, 1-year service charge waiver, and RETT exemption for first-time buyers. Average price: AED 1,333–1,500 psf.
Rental Yields: 7–9% (apartments: AED 50K–120K/year; townhouses: AED 80K–150K/year), with 12% rental growth in 2025 due to tourism (764K visitors in 2023) and beachfront appeal.
Freehold Benefits: 100% freehold ownership via Fujairah Department of Land and Real Estate Regulation (FDLRER). Enables global resale, leasing, and inheritance.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2%, AED 16K–60K) for first-time buyers. 9% corporate tax on mainland profits above AED 375K; Fujairah Free Zone ensures 0% corporate tax. 5% VAT on commercial spaces, recoverable for off-plan purchases.
Sustainability Features: Energy-efficient systems, green landscaping, aligning with Fujairah’s Vision 2040 and SDG 11.
Investment Potential: 6–8% appreciation by 2029 (e.g., AED 800K apartment to AED 848K–864K). 80% occupancy due to affordability and coastal lifestyle. Golden Visa eligible (AED 2M+).
Impact: Mixed-use coastal hub with retail and leisure. Tax savings (AED 16K–300K) and proximity to Oman border (25 min) attract GCC and European investors.

2. Al Taif Business Centre (Al Fujairah City)

Project Details: Al Taif Investment’s project offers 1–2-bedroom apartments, retail, and office spaces (AED 600K–2M, 500–1,500 sqft) with smart tech and city views. Located near Fujairah Free Zone, 10 minutes from Port of Fujairah. Handover Q2 2026, with 60/40 payment plans and RETT exemption for off-plan purchases. Average price: AED 1,200–1,333 psf.
Rental Yields: 7–9% (apartments: AED 40K–100K/year; offices: AED 60K–120K/year), with 12% rental growth in 2025 due to business hub proximity.
Freehold Benefits: 100% freehold ownership via FDLRER. Supports global resale and legacy planning.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2%, AED 12K–40K) for off-plan purchases. 9% corporate tax on mainland profits above AED 375K; Fujairah Free Zone ensures 0% corporate tax. 5% VAT recoverable for off-plan purchases.
Sustainability Features: Smart waste management, energy-efficient designs, aligning with Fujairah’s Vision 2040 and SDG 11.
Investment Potential: 6–8% appreciation by 2029 (e.g., AED 600K apartment to AED 636K–648K). 80% occupancy due to commercial appeal. Golden Visa eligible (AED 2M+).
Impact: Urban business hub with residential and retail. Tax savings (AED 12K–200K) and connectivity to Dubai (90 min) attract Indian and GCC investors.

3. Mina Al Fujairah (Mina)

Project Details: Fujairah Properties’ waterfront project offers 2–4-bedroom apartments and retail spaces (AED 1M–3.5M, 800–2,500 sqft) with smart tech and marina access. Located near Port of Fujairah, 15 minutes from city center. Handover Q4 2026, with 50/50 payment plans and RETT exemption for first-time buyers. Average price: AED 1,250–1,400 psf.
Rental Yields: 6–8% (apartments: AED 60K–150K/year; retail: AED 80K–200K/year), with 12% rental growth in 2025 due to port expansion and tourism.
Freehold Benefits: 100% freehold ownership via FDLRER. Enables global resale and inheritance.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2%, AED 20K–70K) for first-time buyers. 9% corporate tax on mainland profits above AED 375K; Fujairah Free Zone ensures 0% corporate tax. 5% VAT on commercial spaces, recoverable for off-plan purchases.
Sustainability Features: Eco-friendly materials, green spaces, aligning with Fujairah’s Vision 2040 and SDG 11.
Investment Potential: 5–7% appreciation by 2029 (e.g., AED 1M apartment to AED 1.05M–1.07M). 75% occupancy due to waterfront and commercial appeal. Golden Visa eligible.
Impact: Maritime-focused hub with retail and residential. Tax savings (AED 20K–350K) and proximity to shipping routes attract Asian and GCC investors.

4. Fujairah Corniche Towers (Al Fujairah City)

Project Details: Union Properties’ project offers 1–3-bedroom apartments and retail spaces (AED 700K–2.5M, 600–1,800 sqft) with sea views and smart tech. Located along Fujairah Corniche, 10 minutes from city center. Handover Q1 2026, with 60/40 payment plans and RETT exemption for off-plan purchases. Average price: AED 1,167–1,389 psf.
Rental Yields: 7–9% (apartments: AED 50K–120K/year; retail: AED 70K–150K/year), with 12% rental growth in 2025 due to tourism and coastal lifestyle.
Freehold Benefits: 100% freehold ownership via FDLRER. Supports global resale and legacy planning.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2%, AED 14K–50K) for off-plan purchases. 9% corporate tax on mainland profits above AED 375K; Fujairah Free Zone ensures 0% corporate tax. 5% VAT recoverable for off-plan purchases.
Sustainability Features: Green landscaping, energy-efficient systems, aligning with Fujairah’s Vision 2040 and SDG 11.
Investment Potential: 6–8% appreciation by 2029 (e.g., AED 700K apartment to AED 742K–756K). 80% occupancy due to urban coastal appeal. Golden Visa eligible.
Impact: Coastal urban hub with retail and leisure. Tax savings (AED 14K–250K) and connectivity to Sharjah (70 min) attract European and GCC investors.

5. Masafi Eco Village (Masafi)

Project Details: Local developer’s project offers 3–5-bedroom villas and retail spaces (AED 1.5M–5M, 2,000–4,000 sqft) with mountain views, eco-tourism focus, and smart tech. Located near Masafi’s natural springs, 30 minutes from Fujairah city. Handover Q3 2026, with 50/50 payment plans and RETT exemption for first-time buyers. Average price: AED 750–1,250 psf.
Rental Yields: 6–8% (villas: AED 90K–200K/year; retail: AED 100K–180K/year), with 10% rental growth in 2025 due to eco-tourism and expat demand.
Freehold Benefits: 100% freehold ownership via FDLRER. Enables global resale and inheritance.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2%, AED 30K–100K) for first-time buyers. 9% corporate tax on mainland profits above AED 375K; Fujairah Free Zone ensures 0% corporate tax. 5% VAT on commercial spaces, recoverable for off-plan purchases.
Sustainability Features: Solar panels, water recycling, LEED-certified designs, aligning with Fujairah’s Vision 2040 and SDG 11.
Investment Potential: 5–7% appreciation by 2029 (e.g., AED 1.5M villa to AED 1.58M–1.61M). 75% occupancy due to eco-friendly appeal. Golden Visa eligible.
Impact: Sustainable rural hub with retail and tourism. Tax savings (AED 30K–500K) and proximity to Dubai (90 min) attract eco-conscious investors.

6. Dibba Waterfront (Dibba)

Project Details: Fujairah Properties’ project offers 2–4-bedroom apartments, townhouses, and retail spaces (AED 1M–4M, 800–2,500 sqft) with waterfront views and smart tech. Located near Dibba Port, 20 minutes from Oman border. Handover Q2 2026, with 60/40 payment plans and RETT exemption for off-plan purchases. Average price: AED 1,250–1,600 psf.
Rental Yields: 6–8% (apartments: AED 60K–150K/year; townhouses: AED 100K–200K/year), with 12% rental growth in 2025 due to tourism and port proximity.
Freehold Benefits: 100% freehold ownership via FDLRER. Supports global resale and legacy planning.
Tax Incentives: Zero personal income, capital gains, or property taxes. RETT exemption (2%, AED 20K–80K) for off-plan purchases. 9% corporate tax on mainland profits above AED 375K; Fujairah Free Zone ensures 0% corporate tax. 5% VAT recoverable for off-plan purchases.
Sustainability Features: Green spaces, energy-efficient designs, aligning with Fujairah’s Vision 2040 and SDG 11.
Investment Potential: 6–8% appreciation by 2029 (e.g., AED 1M apartment to AED 1.06M–1.08M). 80% occupancy due to waterfront and commercial appeal. Golden Visa eligible.
Impact: Coastal mixed-use hub with retail and leisure. Tax savings (AED 20K–400K) and connectivity to Ras Al Khaimah (60 min) attract GCC and Asian investors.

Market Trends and Outlook for 2025

Yields and Appreciation: Fujairah’s mixed-use projects offer 6–9% ROI and 5–8% appreciation, driven by AED 15.4B in 2024 transactions (20% YoY growth) and a 10–12% price increase in Q1 2025 (AED 750–1,600 psf). Short-term rentals grew 12%, long-term rentals 10%, with 75–80% occupancy due to tourism (764K visitors in 2023) and port expansion.
Freehold and Tax Environment: Freehold laws since 2018 allow 100% ownership in zones like Al Fujairah City, Mina, and Dibba, boosting demand (35% from GCC, India, Europe). Zero personal income, capital gains, and property taxes, with RETT exemptions (2%, AED 6K–80K), save AED 6K–500K. Fujairah Free Zone offers 0% corporate tax; mainland entities face 9% corporate tax on profits above AED 375K. 5% VAT on commercial spaces, recoverable for off-plan purchases.
Infrastructure Impact: Port of Fujairah’s AED 500M expansion, Fujairah International Airport upgrades, and highways (E99, E89) boost values by 10–15%. Amenities like Fujairah Corniche, Dibba Port, and Masafi’s eco-tourism drive rentals (AED 150–3,000/night).
Investor Drivers: Limited supply (2,500 units in 2025–26), Golden Visa eligibility (AED 2M+), and flexible payment plans (5–10% down, 50/60 plans) fuel 40% of demand from GCC (20%), India (10%), and Europe (5%). Smart tech and sustainability (LEED, green designs) enhance appeal.
Risks: Oversupply (2,500 units in 2025–26) and AML compliance costs (AED 5K–15K) pose a 5–8% correction risk in H2 2025. Mitigated by 75% absorption, escrow accounts, and FDLRER oversight. Corporate tax (9% for profits over AED 375K) may impact large investors, though free zone structures minimize this.
Regulatory Framework: FDLRER ensures transparency with digital title deeds and escrow laws for off-plan sales (handover 2025–2026). Freehold zones allow inheritance with no estate tax; DIFC Wills Service Centre recommended for non-Muslims. Domestic Minimum Top-up Tax (DMTT) for MNEs with revenues over €750M ensures a 15% minimum tax rate, aligning with OECD standards.

Investment Strategy

Diversification: Invest in Al Taif Business Centre (AED 600K–2M, 7–9% ROI) or Fujairah Corniche Towers (AED 700K–2.5M, 7–9% ROI) for affordability, Fujairah Beachfront (AED 800K–3M, 7–9% ROI) or Dibba Waterfront (AED 1M–4M, 6–8% ROI) for coastal appeal, Mina Al Fujairah (AED 1M–3.5M, 6–8% ROI) for maritime hubs, and Masafi Eco Village (AED 1.5M–5M, 6–8% ROI) for eco-conscious buyers.
Entry Points: Off-plan units (5–10% down, 50/60 plans) offer flexibility. Early investment maximizes appreciation as tourism and infrastructure mature.
Tax Optimization: Hold properties personally to avoid 9% corporate tax or use Fujairah Free Zone entities for 0% corporate tax on qualifying income. Leverage RETT exemptions (2%, AED 6K–80K) and recover 5% VAT (AED 3K–50K/year) via UAE FTA registration. Consult advisors like Al Fujairah Real Estate for compliance.
Process: Verify freehold status via FDLRER portals. Pay 2% RETT (unless exempt) and secure NOC. Use platforms like PropertyFinder.ae, Bayut.com, or FujairahProperties.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 six mixed-use developments—Fujairah Beachfront, Al Taif Business Centre, Mina Al Fujairah, Fujairah Corniche Towers, Masafi Eco Village, and Dibba Waterfront offer 6–9% ROI and 5–8% appreciation, backed by AED 15.4B in 2024 transactions and a 10–12% price surge in Q1 2025.

Freehold laws since 2018 enable global ownership in zones like Al Fujairah City and Dibba, while tax-friendly models zero personal income, capital gains, and property taxes, with RETT exemptions (AED 6K–80K) maximize returns.

Sustainability features (smart tech, LEED designs) align with Fujairah’s Vision 2040 and SDG 11. Despite a 5–8% correction risk from oversupply, 75% absorption, escrow protections, and infrastructure (port, airport upgrades) ensure stability.

With prices from AED 600K–8M, tourism-driven rentals (12% growth), and affordability, these projects attract GCC, Indian, and European investors. Fujairah