Palm Jumeirah: 6 RETT-Safe Investments for Global Real Estate Buyers in 2025

REAL ESTATE1 week ago

Palm Jumeirah, a globally renowned man-made island in Dubai’s AED 761B real estate market in 2024 (226,000 transactions, 36% year-on-year growth), offers luxury villas (AED 10M–50M) and apartments (AED 3M–15M) with 6–9% ROI and 5–8% appreciation by 2028. Driven by 21M tourists, 6,700 high-net-worth individuals (HNWIs) relocating in 2024, and the Dubai 2040 Plan, it recorded AED 34B in sales (15% of Dubai’s market), with 948 transactions above AED 15M.

The UAE’s tax regime zero personal income tax, zero capital gains tax, zero inheritance tax, and VAT exemptions on residential properties maximizes returns. However, the 4% Real Estate Transfer Tax (RETT), split 2% buyer and 2% seller per Dubai Land Department (DLD) regulations, impacts acquisition costs.

Six RETT-safe investment projects Atlantis The Royal Residences, Six Senses Residences, Serenia Living, The Palm Tower, AVA at Palm Jumeirah, and Balqis Residences minimize tax exposure through flexible payment plans, gift transfer options, and off-plan structures.

Supported by 95% absorption, RERA escrow protections, and Golden Visa eligibility (AED 2M+), these projects attract global investors. This guide details each project, its RETT-safe features, and investment potential, backed by 2024–2025 data.

1. Atlantis The Royal Residences

Project Details: A Kerzner International project offering 2–5-bedroom apartments (AED 8M–25M) and penthouses (AED 30M–100M) on Palm Jumeirah’s crescent. Features private beaches, infinity pools, and Michelin-star dining. Handover completed, ready units available.
RETT-Safe Features: Offers 50/50 payment plans (50% during purchase, 50% post-handover), reducing upfront RETT (2% of AED 8M saves AED 80K initially). Gift transfers to 100% owned entities reduce RETT to 0.125% (e.g., AED 10K vs. AED 160K on AED 8M). Zero-rated first supply avoids 5% VAT.
Investment Potential: 7–9% ROI from short-term rentals (AED 500K–2M/year), driven by 70% occupancy and 20% rental growth in 2024. AED 5B in 2024 sales, with 80% to HNWIs. Prices rose 45% last year.
Impact: Tax savings (AED 150K–500K) and Golden Visa eligibility enhance returns, attracting 30% of buyers from Europe and GCC.

2. Six Senses Residences

Project Details: A wellness-focused development by Six Senses, offering 2–4-bedroom apartments (AED 6M–15M) and villas (AED 20M–40M). Features spa facilities and private pools. Handover Q4 2025.
RETT-Safe Features: 60/40 payment plan (60% during construction, 40% post-handover) defers 40% of RETT (e.g., AED 48K on AED 6M). Gift transfers to shareholders cut RETT to 0.125%. Zero-rated first supply avoids VAT.
Investment Potential: 6–8% ROI from long-term rentals (AED 400K–1M/year), with 75% occupancy. AED 3B in 2024 off-plan sales, with 20% price growth. Appeals to wellness-focused HNWIs (25% of buyers).
Impact: RETT deferral saves AED 40K–120K upfront, boosting cash flow. Golden Visa eligibility drives 20% of sales to Asian investors.

3. Serenia Living

Project Details: A Palma Development project with 3–5-bedroom apartments (AED 10M–20M) and beachfront villas (AED 25M–50M). Offers panoramic sea views and private beach access. Handover Q3 2025.
RETT-Safe Features: 70/30 payment plan (70% during construction, 30% post-handover) defers 30% of RETT (e.g., AED 60K on AED 10M). Gift transfers reduce RETT to 0.125%. Zero-rated first supply avoids VAT.
Investment Potential: 7–9% ROI from short-term rentals (AED 600K–1.5M/year), with 70% occupancy and 18% rental growth in 2024. AED 2.5B in off-plan sales, with 40% to HNWIs. Prices up 30% in five years.
Impact: Tax savings (AED 60K–200K) and beachfront appeal drive 35% of sales to GCC and European investors, enhancing ROI.

4. The Palm Tower

Project Details: A Nakheel project offering 1–3-bedroom apartments (AED 3M–10M) and penthouses (AED 15M–25M). Features rooftop infinity pool and St. Regis amenities. Handover completed, ready units available.
RETT-Safe Features: Developer discounts (e.g., 50% RETT reduction at Dubai Property Festival 2025 for units under AED 4M) cut RETT to 2% (e.g., AED 60K vs. AED 120K on AED 3M). Zero-rated first supply avoids VAT.
Investment Potential: 8–10% ROI from short-term rentals (AED 150K–500K/year), with 75% occupancy and 20% rental growth in 2024. AED 1.8B in 2024 sales, with 60% to international buyers. Prices rose 36% in six years.
Impact: RETT savings (AED 60K–100K) and high liquidity attract 25% of buyers for rental income, boosting cash flow.

5. AVA at Palm Jumeirah

Project Details: An ultra-luxury project by Omniyat, offering 3–5-bedroom apartments (AED 15M–30M) and sky palaces (AED 40M–80M). Features private elevators and Burj Al Arab views. Handover Q2 2026.
RETT-Safe Features: 1% monthly payment plan (e.g., 10% down, 90% over 90 months) defers 90% of RETT (e.g., AED 270K on AED 15M). Gift transfers to entities cut RETT to 0.125%. Zero-rated first supply avoids VAT.
Investment Potential: 6–8% ROI from long-term rentals (AED 800K–2M/year), with 70% occupancy. AED 2B in 2024 off-plan sales, with 30% price growth. Targets ultra-HNWIs (20% of buyers).
Impact: RETT deferral saves AED 200K–600K upfront, enhancing ROI. Golden Visa eligibility drives 40% of sales to global elites.

6. Balqis Residences

Project Details: A Kingdom Holding project offering 2–4-bedroom apartments (AED 5M–12M) and villas (AED 15M–35M) on the crescent. Features private beaches and yacht access. Handover completed, ready units available.
RETT-Safe Features: 50/50 payment plan defers 50% of RETT (e.g., AED 100K on AED 5M). Gift transfers reduce RETT to 0.125%. Zero-rated first supply avoids VAT.
Investment Potential: 7–9% ROI from short-term rentals (AED 300K–800K/year), with 70% occupancy and 20% rental growth in 2024. AED 1.5B in 2024 sales, with 50% to HNWIs. Prices up 40% last year.
Impact: Tax savings (AED 100K–240K) and high demand from tourists ensure stable returns, attracting 30% of buyers for short-term rentals.

Market Trends and Outlook for 2025

Yields and Appreciation: Palm Jumeirah offers 6–9% ROI (apartments 7–10%, villas 6–8%) and 5–8% appreciation, driven by AED 34B in 2024 sales and 20% rental growth (short-term 22%, long-term 18%). Luxury projects like Atlantis The Royal Residences yield up to 9%.
Tax Environment: Zero personal income, capital gains, and inheritance taxes, plus VAT exemptions on residential properties, maximize returns. RETT (4%, 2% buyer) can be mitigated via gift transfers (0.125%) or developer discounts (50% off for units under AED 1M).
Infrastructure Impact: Monorail connectivity, proximity to Atlantis The Palm, and tourism (21M visitors in 2024) drive 70% occupancy. Dubai 2040 Plan and Palm Jebel Ali (handover Q4 2026) boost values by 5–10%.
Investor Drivers: Golden Visas, 100% foreign ownership in freehold zones, and flexible payment plans (5–10% down) fuel 70% of demand. Off-plan sales (65% of 2024 transactions) dominate, with 10,000 units expected in 2025.
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.
Regulatory Framework: DLD and RERA ensure transparency with 4% RETT. Gift transfers require DLD approval and shareholder proof. Escrow laws protect off-plan investments (e.g., Six Senses, handover Q4 2025). Freehold zones allow inheritance rights.

Investment Strategy

Diversification: Invest in Atlantis The Royal Residences for ultra-luxury rentals, The Palm Tower for mid-tier yields, or AVA for long-term appreciation. Off-plan projects like Six Senses offer 10–15% gains by 2026.
Entry Points: Off-plan units (5–10% down) in Serenia Living or AVA provide flexibility. Ready units in Balqis Residences suit immediate rentals (AED 300K–2M/year).
RETT Optimization: Use gift transfers to 100% owned entities (0.125% RETT) or leverage 50/50 payment plans to defer 50% of RETT. Verify developer discounts at events like Dubai Property Festival 2025. 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 Bayut or Property Finder. Required documents: passport copy, proof of funds, no UAE visa needed. Documents must be translated into Arabic and legalized.

Conclusion

In 2025, Palm Jumeirah’s six RETT-safe projects Atlantis The Royal Residences, Six Senses Residences, Serenia Living, The Palm Tower, AVA at Palm Jumeirah, and Balqis Residences offer 6–9% ROI and 5–8% appreciation, backed by AED 34B in 2024 sales. Leveraging zero personal income, capital gains, and inheritance taxes, plus VAT exemptions, these projects minimize RETT through payment plans and gift transfers. Despite a 10–15% correction risk, 95% absorption and RERA protections ensure stability. Palm Jumeirah 2025