The World Islands: 5 Branded Residences Setting New Market Standards in 2025

REAL ESTATE1 month ago

Branded Residences : Dubai’s AED 761B real estate market in 2024 (36% YoY transaction growth, 226,000 transactions) offers villas (AED 3M–50M) and apartments (AED 750K–10M) with 6–9% ROI and 5–8% appreciation by 2029. The World Islands, a Nakheel-developed archipelago of 260 islands shaped like a world map, spans 232 km of coastline and targets high-net-worth individuals (HNWIs) with luxury branded residences. Located 4 km off Dubai’s coast, it offers exclusivity, waterfront living, and access via a new 8-lane bridge (completed 2024).

With 17M tourists in 2024 and Dubai’s 2040 Urban Master Plan (AED 128B), the islands align with the city’s goal to attract 25M visitors by 2030. Five branded residences Bvlgari Lighthouse, The Floating Venice, Six Senses Residences, Sweden Island Palaces, and The Floating Seahorse offer 3–7-bedroom villas and penthouses (AED 10M–75M, 4,000–15,000 sqft) with premium amenities, sustainable designs, and 40–60% price premiums over non-branded properties.

This guide details these projects, their freehold benefits, tax incentives, sustainability features, and investment potential, supported by 2024–2025 data.

1. Bvlgari Lighthouse (Jumeirah Bay Island)

Project Details: Developed by Meraas, this ultra-limited release offers 4–5-bedroom penthouses and sky villas (AED 25M–75M, 4,000–10,000 sqft) with private pools, coral-inspired architecture, and access to Bvlgari Marina & Yacht Club. Designed by Antonio Citterio Patricia Viel, it features Italian elegance and uninterrupted sea views. Handover Q2 2026 with 60/40 payment plans. Average price: AED 6,250–10,668 psf.
Freehold Benefits: 100% freehold ownership for expats, registered via Dubai Land Department (DLD). Enables global resale and inheritance without restrictions.
Tax Incentives: Zero personal income tax on rentals (AED 750K–2M/year), zero capital gains tax on profits (e.g., AED 1.25M–6M by 2029), and no property tax. 4% DLD registration fee (AED 1M–3M). Free zone ownership via JAFZA ensures 0% corporate tax.
Sustainability Features: Energy-efficient systems, low-VOC materials, and water-saving fixtures. Aligns with Dubai Clean Energy Strategy 2050 and SDG 11.
Investment Potential: 8–10% ROI, with 90% occupancy projected due to Bvlgari branding and exclusivity. AED 300M in 2024 pre-sales, with 5–8% appreciation by 2029 (e.g., AED 25M penthouse to AED 26.25M–27M). Golden Visa eligible (AED 2M+).
Impact: Ultra-luxury coastal living for HNWIs. Tax savings (AED 1M–8M) and proximity to Jumeirah Bay (10 min by boat from Dubai Marina) attract European buyers.

2. The Floating Venice (The Heart of Europe)

Project Details: Kleindienst Group’s Venetian-themed project offers 4–6-bedroom floating villas (AED 20M–50M, 4,000–8,000 sqft) with underwater bedrooms, private docks, and coral reef views. Features smart home automation and Venetian-inspired designs. Handover Q3 2025 with 50/50 payment plans. Average price: AED 5,000–6,250 psf.
Freehold Benefits: 100% freehold ownership for expats, registered via DLD. Supports global resale and legacy planning.
Tax Incentives: Zero personal income tax on rentals (AED 600K–1.5M/year), zero capital gains tax on profits (e.g., AED 1M–4M by 2029), and no property tax. 4% DLD fee (AED 800K–2M). Free zone ownership ensures 0% corporate tax.
Sustainability Features: Coral reef restoration, solar panels, and eco-friendly materials. Aligns with Dubai 2040 Urban Master Plan and SDG 13.
Investment Potential: 8–10% ROI, with 85% occupancy due to unique underwater features and tourism (17M visitors in 2024). AED 250M in 2024 pre-sales, with 5–8% appreciation by 2029 (e.g., AED 20M villa to AED 21M–21.6M). Golden Visa eligible.
Impact: Novelty-driven luxury for investors. Tax savings (AED 800K–5.5M) and exclusivity (15 min by boat from Dubai Marina) attract Russian HNWIs.

3. Six Senses Residences (The Heart of Europe)

Project Details: Kleindienst Group’s wellness-focused project offers 4–6-bedroom villas (AED 15M–40M, 4,500–9,000 sqft) with private beaches, wellness spas, and Arabian Gulf views. Features smart lighting and eco-conscious designs. Handover Q3 2025 with 50/50 payment plans. Average price: AED 3,333–4,879 psf.
Freehold Benefits: 100% freehold ownership for expats, registered via DLD. Enables global resale and inheritance.
Tax Incentives: Zero personal income tax on rentals (AED 450K–1.2M/year), zero capital gains tax on profits (e.g., AED 750K–3.2M by 2029), and no property tax. 4% DLD fee (AED 600K–1.6M). Free zone ownership ensures 0% corporate tax.
Sustainability Features: Solar-powered systems, water recycling, and green landscaping. Aligns with Dubai Clean Energy Strategy 2050 and SDG 11.
Investment Potential: 7–9% ROI, with 85% occupancy projected due to wellness branding and tourism. AED 200M in 2024 pre-sales, with 5–8% appreciation by 2029 (e.g., AED 15M villa to AED 15.75M–16.2M). Golden Visa eligible.
Impact: Eco-luxury retreats for wellness-focused buyers. Tax savings (AED 600K–4.4M) and connectivity via new bridge (20 min to Dubai Marina) attract Asian investors.

4. Sweden Island Palaces (The Heart of Europe)

Project Details: Kleindienst Group’s Scandinavian-themed project offers 7-bedroom palaces (AED 30M–60M, 10,000–15,000 sqft) with private lagoons, infinity pools, and Nordic designs. Features smart home systems and snow rooms. Handover Q3 2025 with 50/50 payment plans. Average price: AED 3,000–4,000 psf.
Freehold Benefits: 100% freehold ownership for expats, registered via DLD. Supports global resale and legacy planning.
Tax Incentives: Zero personal income tax on rentals (AED 900K–1.8M/year), zero capital gains tax on profits (e.g., AED 1.5M–4.8M by 2029), and no property tax. 4% DLD fee (AED 1.2M–2.4M). Free zone ownership ensures 0% corporate tax.
Sustainability Features: Energy-efficient insulation, solar panels, and eco-friendly materials. Aligns with Dubai 2040 Urban Master Plan and SDG 13.
Investment Potential: 8–10% ROI, with 90% occupancy due to exclusivity and tourism appeal. AED 180M in 2024 pre-sales, with 5–8% appreciation by 2029 (e.g., AED 30M palace to AED 31.5M–32.4M). Golden Visa eligible.
Impact: Palatial luxury for HNWIs. Tax savings (AED 1.2M–6.6M) and unique Nordic features attract European buyers.

5. The Floating Seahorse (The Heart of Europe)

Project Details: Kleindienst Group’s innovative project offers 3–4-bedroom floating villas (AED 10M–25M, 4,000–6,000 sqft) with underwater bedrooms, private docks, and coral reef views. Features smart automation and glass floors. Handover Q3 2025 with 50/50 payment plans. Average price: AED 2,500–4,167 psf.
Freehold Benefits: 100% freehold ownership for expats, registered via DLD. Enables global resale and inheritance.
Tax Incentives: Zero personal income tax on rentals (AED 300K–750K/year), zero capital gains tax on profits (e.g., AED 500K–2M by 2029), and no property tax. 4% DLD fee (AED 400K–1M). Free zone ownership ensures 0% corporate tax.
Sustainability Features: Marine-friendly construction, solar panels, and water recycling. Aligns with Dubai Clean Energy Strategy 2050 and SDG 14.
Investment Potential: 7–9% ROI, with 80% occupancy due to novelty and short-term rental demand (18% growth in 2025). AED 150M in 2024 pre-sales, with 5–8% appreciation by 2029 (e.g., AED 10M villa to AED 10.5M–10.8M). Golden Visa eligible.
Impact: Unique floating homes for investors. Tax savings (AED 400K–2.75M) and accessibility (15 min by boat from Dubai Marina) attract Middle Eastern buyers.

Market Trends and Outlook for 2025

Yields and Appreciation: The World Islands offer 7–10% ROI and 5–8% appreciation, driven by AED 60B in 2024 branded residence sales (43% YoY growth, 13,000 units) and 18% short-term rental growth. Off-plan sales (60% of transactions) dominate, with 7,262 new units added in H1 2024. Prices range from AED 2,500–10,668 psf, with branded residences commanding 40–60% premiums.
Freehold and Tax Environment: Freehold laws since 2002 allow 100% expat ownership, boosting demand (60% of 2024 sales). Zero personal income, capital gains, and property taxes, with a 4% DLD fee, ensure tax efficiency. Free zone entities (e.g., JAFZA) offer 0% corporate tax. No fee changes confirmed for 2025.
Infrastructure Impact: The new 8-lane bridge (2024) and ferry services enhance connectivity (15–20 min to Dubai Marina). Tourism (17M visitors in 2024, targeting 25M by 2030) and 80–90% occupancy drive rentals (AED 1,000–5,000/night). Planned hospitality projects (e.g., Rixos Dubai Islands) boost appeal.
Investor Drivers: Freehold status, 50/50 or 60/40 payment plans (10% down), and Golden Visa eligibility (AED 2M+) fuel 60% of demand, particularly from Europe (25%), Russia (20%), and Asia (15%). Exclusivity, branded prestige (Bvlgari, Six Senses), and affordability (e.g., AED 10,668 psf vs. AED 25,000 psf in Miami) attract investors. Sustainability features (coral restoration, solar panels) draw ESG investors.
Risks: Oversupply (6,346 units under construction), AML compliance costs (AED 5K–20K), and off-plan delays pose a 5–10% correction risk in H2 2025. Mitigated by 80–90% absorption, escrow accounts, and DLD regulations.
Regulatory Framework: DLD ensures transparency via digital title deeds. Escrow laws protect off-plan investments (e.g., Bvlgari Lighthouse, handover Q2 2026). Freehold zones allow inheritance with no estate tax; DIFC Wills Service Centre recommended for non-Muslims.

Investment Strategy

Diversification: Invest in Bvlgari Lighthouse (AED 25M–75M, 8–10% ROI) for ultra-luxury, The Floating Venice (AED 20M–50M, 8–10% ROI) or Sweden Island Palaces (AED 30M–60M, 8–10% ROI) for exclusivity, Six Senses Residences (AED 15M–40M, 7–9% ROI) for wellness appeal, or The Floating Seahorse (AED 10M–25M, 7–9% ROI) for affordability and novelty.
Entry Points: Off-plan units (10% down, 50/50 or 60/40 plans) offer flexibility. Ready units expected post-2025 suit immediate rentals (AED 300K–2M/year).
Tax Optimization: Hold properties personally to avoid 9% corporate tax or use JAFZA entities for 0% corporate tax. Pay 4% DLD fee and recover input VAT (AED 5K–50K/year) via UAE FTA registration. Consult advisors like Acasa for compliance.
Process: Verify freehold status and tax benefits via DLD portals. Pay 4% DLD fee and secure NOC. Use platforms like Property Finder, Emirates.Estate, or uae-offplan.com. Required documents: passport copy, proof of funds, no UAE visa needed. Documents must be translated into Arabic and legalized.

Conclusion

In 2025, The World Islands’ five branded residences Bvlgari Lighthouse, The Floating Venice, Six Senses Residences, Sweden Island Palaces, and The Floating Seahorse offer 7–10% ROI and 5–8% appreciation, backed by AED 60B in 2024 branded residence sales (43% YoY growth).

Freehold laws (since 2002) enable global ownership and inheritance, while tax advantages zero personal income, capital gains, and property taxes, and a 4% DLD fee (saving AED 400K–8M) maximize returns. Sustainability features (solar panels, coral restoration) align with Dubai Clean Energy Strategy 2050 and SDGs. Despite a 5–10% correction risk from oversupply, 80–90% absorption, escrow protections, and infrastructure (new bridge, Rixos projects) ensure stability.

With competitive pricing (AED 2,500–10,668 psf), premium amenities (private docks, underwater bedrooms), and connectivity (15–20 min to Dubai Marina), these residences attract HNWIs from Europe, Russia, and Asia. Explore opportunities via Property Finder, Meraas, or Kleindienst for high-return, tax-efficient, and sustainable investments in Dubai’s luxury branded residence market. the world island Branded Residences