RAK Real Estate: 5 City Projects Near Tax-Free Free Zones

Ras Al Khaimah (RAK) is emerging as a prime real estate destination in the UAE, driven by its tax-free free zones and ambitious urban projects. In 2025, the emirate’s property market is thriving, with transactions reaching AED 11.95 billion in the first nine months of 2024, a 70% increase from 2020, according to the RAK Real Estate Regulatory Agency.

The Ras Al Khaimah Economic Zone (RAKEZ), a key free zone, offers 100% foreign ownership, no personal or corporate income taxes (for qualifying activities), and full profit repatriation, making it a magnet for investors. With a 9% corporate tax for businesses exceeding AED 375,000 in turnover, the tax burden remains low compared to global standards.

This article highlights five city projects near RAK’s tax-free free zones, offering strong investment potential with rental yields of 7-11% and capital appreciation of 8-10% by 2026, fueled by developments like the Wynn Al Marjan Island resort.

Why RAK’s Free Zones Boost Real Estate Investment

RAKEZ, encompassing free zone parks in Al Hamra, Al Ghail, and Al Nakheel, supports over 23,000 companies from 100 countries, driving demand for residential and commercial properties. Its tax advantages no personal income tax, no capital gains tax, and a 2% property transfer fee enhance post-tax returns.

The emirate’s strategic location, 45 minutes from Dubai, and infrastructure projects like the Etihad Railway and airport expansions further boost its appeal. RAK’s tourism sector, expecting 1.22 million visitors in 2025, and the $3.9 billion Wynn Al Marjan Island resort, set to open in 2027, are key catalysts for real estate growth. Below are five city projects near RAK’s free zones, ideal for investors seeking tax-efficient opportunities.

1. Mirasol – Mina, Raha Island

Mirasol, a twin-tower residential project by RAK Properties, is part of the Mina master plan near the Al Hamra free zone. Launched in 2025, it offers 339 units, including studios, apartments, and duplexes, starting at AED 1 million, with an average price of AED 2,200 per square foot. Featuring a Michelin-starred restaurant and beachfront access, it targets luxury buyers and tenants.

Rental yields are projected at 7-9%, with one-bedroom units fetching AED 60,000-80,000 annually. The tax-free environment, with a 2% transfer fee, maximizes returns, while completion in 2028 aligns with the Wynn resort’s opening, driving 8-10% capital appreciation. Its proximity to RAKEZ’s Business Park ensures demand from professionals.

2. Manta Bay – Al Marjan Island

Manta Bay, developed by Major Developers, is a luxury waterfront project on Al Marjan Island, near RAKEZ’s Technology Park. Offering apartments and villas starting at AED 1.2 million, it features private beach access and resort-style amenities. Its location, just 10 minutes from the Wynn resort, supports high short-term rental yields of 9-11%, with apartments potentially earning AED 255,000 annually at 75% occupancy.

The absence of capital gains tax and a 2% transfer fee enhances profitability. With Al Marjan Island’s apartment prices up 18.5% in 2024, Manta Bay is poised for 8-10% capital growth by 2026, making it a top choice for investors.

3. One RAK Central – Al Nakheel

One RAK Central, by Pantheon Development, is an off-plan mixed-use tower in Al Nakheel, near RAKEZ’s Business Park. Starting at AED 350,000 for studios, it offers apartments with 5-7% long-term rental yields, netting AED 24,000 annually for a AED 400,000 unit. Short-term rentals yield 7-9%, driven by 1.22 million annual visitors.

The project’s tax advantages include no property taxes and a 2% transfer fee, with RERA escrow accounts ensuring investment security. Completion in 2025 aligns with RAK’s tourism surge, projecting 8-10% capital appreciation. Its urban location suits professionals and small families seeking tax-efficient ownership.

4. Julphar Towers – Al Nakheel

Julphar Towers, a mixed-use development in Al Nakheel, is near RAKEZ’s Business Park and caters to professionals and business travelers. Apartments start at AED 500,000, offering 5-7% long-term rental yields (AED 30,000-50,000 annually) and 7-9% for short-term rentals.

The absence of capital gains tax and a 2% transfer fee boosts returns, while the project’s proximity to RAK’s commercial hub ensures steady demand. With commercial leasing up 12% in 2024, Julphar Towers also offers retail spaces yielding 6-8%. Analysts forecast 5-7% price growth in 2025, supported by RAK’s economic vision and infrastructure upgrades.

5. Hayat Island – Mina

Hayat Island, part of RAK Properties’ Mina master plan near the Al Hamra free zone, offers villas and apartments starting at AED 1.5 million. Featuring a yacht club, marina boulevard, and luxury hotels like InterContinental and Anantara, it targets high-end buyers and tourists. Rental yields range from 6-8%, with villas leasing for AED 100,000-150,000 annually.

The tax-free structure, with no property taxes and a 2% transfer fee, ensures high post-tax returns. With Mina’s AED 5 billion development plan for 2025, including 2,500-3,000 units, Hayat Island is set for 8-10% capital appreciation by 2026, driven by tourism and Wynn’s spillover effects.

Tax Advantages and Investment Considerations

RAK’s free zones offer significant tax benefits for property investors:

• No personal income tax or capital gains tax, maximizing rental and sale profits.
• Property transfer fees of 2%, often split with the seller, compared to Dubai’s 4%.
• No annual property taxes, though expatriates pay a 2% municipal tax on rental income.
• Corporate tax of 9% applies only to businesses with turnover above AED 375,000, with exemptions for qualifying free zone activities.
• VAT exemptions or zero-rating on residential properties for first sales within three years.

For U.S. investors, rental income and gains must be reported to the IRS, but deductions and exemptions can reduce liability. Off-plan projects like Mirasol and One RAK Central offer lower entry prices and flexible payment plans (10-20% down), but buyers should vet developers to avoid delays, mitigated by RERA’s escrow oversight.

Additional costs include AED 2,000-4,000 registration fees and 5% VAT on furnishings for rentals. RAK’s diversified economy, with 2.7% GDP growth projected through 2025, and infrastructure like the Etihad Railway, supports long-term stability.

Why 2025 Is Ideal for Investment

RAK’s real estate market is booming, with a 14% rise in apartment sale prices and 10.5% increase in rental rates in 2024. The emirate’s free zones, hosting over 23,000 companies, drive housing demand, while tourism growth and the Wynn resort’s 2027 opening fuel short-term rental potential. With 40,000 new units needed to meet demand, these projects offer high yields and growth in a tax-efficient environment. RAK

read more: Abu Dhabi Islands: 6 Residential Launches With Tax-Advantaged Ownership Models