UAE Island Real Estate: 7 Prime Waterfront Projects Launching in 2025

REAL ESTATE1 month ago

The UAE’s AED 298B real estate market in 2024 (108,000 transactions, 25% year-on-year growth) offers apartments (AED 470K–300M), villas (AED 1M–150M), and townhouses (AED 800K–10M) with 6–9% ROI and 5–15% appreciation by 2028.

With 20.4M tourists and a 10.4M population in 2024, demand is driven by tax advantages (zero personal income, capital gains, and inheritance taxes, VAT exemptions on residential properties, and 0% corporate tax in free zones), freehold laws (since 2002 for expats in designated areas), and infrastructure (e.g., Zayed International Airport, Etihad Rail).

Seven prime waterfront projects launching in 2025 Sobha Siniya Island (Umm Al Quwain), Ramhan Island (Abu Dhabi), Dubai Islands (Dubai), Al Marjan Island Residences (Ras Al Khaimah), Yas Bay (Abu Dhabi), Saadiyat Lagoons (Abu Dhabi), and Jumeirah Islands (Dubai) leverage the UAE’s 1,400km coastline, attracting AED 15B in waterfront transactions in 2024.

These projects, blending luxury, sustainability, and branded residences, align with UAE Vision 2030 and Sustainable Blue Economy goals, offering high-end amenities and Golden Visa eligibility (AED 2M+). This guide details each project, its freehold benefits, tax incentives, sustainability features, and investment potential, supported by 2024–2025 data.

1. Sobha Siniya Island (Umm Al Quwain, Siniya Island)

Project Details: A 16.1M sqft luxury development by Sobha Realty, offering 1–4-bedroom apartments (AED 1.2M–5M, 500–2,000 sqft), 4–6-bedroom villas (AED 10M–18M, 3,000–6,000 sqft), and duplexes. Features two 5-star resorts, a marina, 46% green spaces, and private beach access. Handover Q4 2025 with 40/60 payment plans. Average price: AED 2,400–3,000 psf.
Freehold Benefits: 100% freehold ownership for expats in designated areas, registered via Umm Al Quwain Land and Property Department. Enables global resale and wealth transfer.
Tax Incentives: Zero-rated first supply avoids 5% VAT (saving AED 60K–900K). Zero personal income tax on rentals (AED 60K–500K/year), zero capital gains tax on profits (e.g., AED 180K–2.7M by 2028), and zero inheritance tax. Gift transfers reduce 2% RETT to 0.125% (saving AED 5K–179K). Free zone ownership via UAQ FTZ ensures 0% corporate tax.
Sustainability Features: Eco-friendly design with 46% green spaces, mangrove preservation, solar panels, and water recycling. Aligns with UAE’s Net Zero 2050 and Sustainable Blue Economy Strategy 2031, supporting SDGs 11, 13, and 15.
Investment Potential: 7–9% ROI, with 85% occupancy projected due to 1.2M tourists in 2024 and proximity to Wynn Al Marjan Island Resort (6 min by boat). AED 800M in 2024 sales, with 10–15% appreciation by 2028 (e.g., AED 1.2M apartment to AED 1.32M–1.38M). Golden Visa eligible (AED 2M+).
Impact: Luxury island living with resorts and marina access. Tax savings (AED 65K–1.079M) and connectivity to Dubai (50 min via E11) attract HNWIs and investors from India, GCC, and Europe.

2. Ramhan Island (Abu Dhabi, Off Al Reem Island)

Project Details: A 3.8M sqft luxury development by Eagle Hills, offering 120 hotel rooms, 120 serviced residences, 900 apartments (AED 1.5M–10M, 600–3,000 sqft), and 1,800 villas (AED 7.2M–30M, 3,000–7,000 sqft). Features a marina, yacht club, luxury boutiques, and private beaches. Handover Q2 2025 with 40/60 payment plans. Average price: AED 2,500–4,286 psf.
Freehold Benefits: 100% freehold ownership for expats, registered via Abu Dhabi Department of Municipalities and Transport (DMT). Supports global resale and legacy planning.
Tax Incentives: Zero-rated first supply avoids VAT (saving AED 75K–1.5M). Zero personal income tax on rentals (AED 50K–500K/year), zero capital gains tax on profits (e.g., AED 150K–3M by 2028), and zero inheritance tax. Gift transfers reduce 2% RETT to 0.125% (saving AED 5K–299K). Free zone ownership via ADGM ensures 0% corporate tax.
Sustainability Features: Low-density design, 20% green spaces, and eco-friendly materials. Supports marine conservation and aligns with Abu Dhabi Vision 2030 and SDG 11.
Investment Potential: 6–8% ROI, with 90% occupancy driven by 9.3M tourists in 2024 and proximity to Abu Dhabi CBD (15 min). AED 1B in 2024 sales, with 5–10% appreciation by 2028 (e.g., AED 7.2M villa to AED 7.56M–7.92M). Golden Visa eligible (AED 2M+).
Impact: Exclusive waterfront living with resort amenities. Tax savings (AED 80K–1.799M) and connectivity to Dubai (60 min via E11) attract global investors and UAE residents.

3. Dubai Islands (Dubai, Deira)

Project Details: A 17M sqft mixed-use development by Nakheel across five islands (Central, Shore, Golf, Marina, Elite), offering apartments (AED 1.9M–5M, 600–2,000 sqft), villas (AED 5M–20M, 3,000–7,000 sqft), and townhouses. Features 50km of coastline, beach clubs, and golf courses. Handover Q1 2025 for Sunset Bay 3 with 20/40/40 payment plans. Average price: AED 2,500–3,167 psf.
Freehold Benefits: 100% freehold ownership for expats, registered via Dubai Land Department (DLD). Enables global resale and wealth transfer.
Tax Incentives: Zero-rated first supply avoids VAT (saving AED 95K–1M). Zero personal income tax on rentals (AED 60K–500K/year), zero capital gains tax on profits (e.g., AED 190K–2M by 2028), and zero inheritance tax. Gift transfers reduce 4% DLD fee to 0.125% (saving AED 5K–399K). Free zone ownership ensures 0% corporate tax.
Sustainability Features: 2M sqft of parks, eco-friendly designs, and EV infrastructure. Aligns with Dubai 2040 Urban Master Plan and SDG 11.
Investment Potential: 6–8% ROI, with 85% occupancy driven by 17M tourists in 2023 and proximity to Dubai International Airport (15 min). AED 2B in 2024 sales, with 8–12% appreciation by 2028 (e.g., AED 1.9M apartment to AED 2.05M–2.13M). Golden Visa eligible (AED 2M+).
Impact: Coastal chic lifestyle with beach clubs and cultural centers. Tax savings (AED 100K–1.399M) and connectivity to Downtown Dubai (20 min) attract expats and investors from UK, US, and GCC.

4. Al Marjan Island Residences (Ras Al Khaimah, Al Marjan Island)

Project Details: A luxury development by Aldar Properties and Address Hotels, offering 1–4-bedroom apartments (AED 1.3M–5M, 600–2,500 sqft) and 5-bedroom villas (AED 10M–20M, 3,500–7,000 sqft). Features beach clubs, retail, and proximity to Wynn Resort. Handover Q1 2028 with 10/40/50 payment plans. Average price: AED 2,167–2,857 psf.
Freehold Benefits: 100% freehold ownership for expats, registered via Ras Al Khaimah Land Department. Supports global resale and legacy planning.
Tax Incentives: Zero-rated first supply avoids VAT (saving AED 65K–1M). Zero personal income tax on rentals (AED 50K–500K/year), zero capital gains tax on profits (e.g., AED 130K–2M by 2028), and zero inheritance tax. Gift transfers reduce 2% RETT to 0.125% (saving AED 5K–199K). Free zone ownership via RAK FTZ ensures 0% corporate tax.
Sustainability Features: Sustainable design with 20% green spaces and energy-efficient systems. Aligns with RAK Vision 2030 and SDGs 11 and 14.
Investment Potential: 7–9% ROI, with 85% occupancy projected due to 1.5M tourists in 2024 and casino resort appeal. AED 1.5B in 2024 sales, with 10–15% appreciation by 2028 (e.g., AED 1.3M apartment to AED 1.43M–1.5M). Golden Visa eligible (AED 2M+).
Impact: Resort-style living with beachfront access. Tax savings (AED 70K–1.199M) and connectivity to Dubai (60 min via E11) attract investors from Europe, GCC, and Asia.

5. Yas Bay (Abu Dhabi, Yas Island)

Project Details: A $12B mixed-use development by Miral, offering apartments (AED 1.5M–5M, 500–2,000 sqft), villas, and townhouses. Features a luxury marina, beach club, Hilton Yas Bay, and a 15,000-capacity arena. Handover Q1 2025 with 40/60 payment plans. Average price: AED 2,500–3,000 psf.
Freehold Benefits: 100% freehold ownership for expats, registered via DMT. Enables global resale and wealth transfer.
Tax Incentives: Zero-rated first supply avoids VAT (saving AED 75K–250K). Zero personal income tax on rentals (AED 50K–200K/year), zero capital gains tax on profits (e.g., AED 75K–500K by 2028), and zero inheritance tax. Gift transfers reduce 2% RETT to 0.125% (saving AED 5K–49K). Free zone ownership via ADGM ensures 0% corporate tax.
Sustainability Features: Eco-friendly materials, 20% green spaces, and EV charging stations. Aligns with Abu Dhabi Vision 2030 and SDG 11.
Investment Potential: 6–8% ROI, with 90% occupancy driven by 9.3M tourists in 2024 and proximity to Yas Marina Circuit. AED 1.2B in 2024 sales, with 5–10% appreciation by 2028 (e.g., AED 1.5M apartment to AED 1.58M–1.65M). Golden Visa eligible (AED 2M+).
Impact: Vibrant lifestyle with entertainment and waterfront amenities. Tax savings (AED 80K–299K) and connectivity to Abu Dhabi CBD (20 min) attract families and investors from UAE and GCC.

6. Saadiyat Lagoons (Abu Dhabi, Saadiyat Island)

Real Estate Project Details: A 4–6-bedroom villa community (AED 6.1M–15M, 4,995–6,362 sqft) by Aldar Properties, exclusively for UAE nationals in phase one. Features a skate park, eco-corniche, and cultural proximity to Louvre Abu Dhabi. Handover Q2 2025 with 40/60 payment plans. Average price: AED 1,222–2,357 psf.
Freehold Benefits: Freehold ownership for UAE nationals, registered via DMT. Supports resale and legacy planning within UAE.
Tax Incentives: Zero-rated first supply avoids VAT (saving AED 305K–750K). Zero personal income tax on rentals (AED 150K–400K/year), zero capital gains tax on profits (e.g., AED 305K–1.5M by 2028), and zero inheritance tax. Gift transfers reduce 2% RETT to 0.125% (saving AED 5K–149K). Free zone ownership ensures 0% corporate tax.
Sustainability Features: Nature-oriented design with 20% green spaces and eco-friendly materials. Aligns with Abu Dhabi Vision 2030 and SDGs 11 and 15.
Investment Potential: 6–8% ROI, with 85% occupancy driven by cultural tourism and exclusivity (AED 500M in 2024 sales). 5–8% appreciation by 2028 (e.g., AED 6.1M villa to AED 6.41M–6.59M). Golden Visa eligible (AED 2M+).
Impact: Serene coastal living with cultural access. Tax savings (AED 310K–899K) and proximity to Abu Dhabi CBD (15 min) attract UAE nationals.

7. Jumeirah Islands (Dubai, Jumeirah)

Project Details: A 736-villa and townhouse community (AED 5M–13.21M, 3,000–7,000 sqft) by Nakheel, featuring private pools and seawater lake views. Offers dining, retail, and wellness amenities. Handover Q1 2025 with 50/50 payment plans. Average price: AED 1,667–1,887 psf.
Freehold Benefits: 100% freehold ownership for expats, registered via DLD. Enables global resale and wealth transfer.
Tax Incentives: Zero-rated first supply avoids VAT (saving AED 250K–660.5K). Zero personal income tax on rentals (AED 150K–400K/year), zero capital gains tax on profits (e.g., AED 250K–1.32M by 2028), and zero inheritance tax. Gift transfers reduce 4% DLD fee to 0.125% (saving AED 5K–259K). Free zone ownership ensures 0% corporate tax.
Sustainability Features: Eco-conscious design with seawater lakes and 20% green spaces. Aligns with Dubai 2040 Urban Master Plan and SDG 11.
Investment Potential: 6–8% ROI, with 85% occupancy driven by 17M tourists in 2023 and proximity to Dubai Marina (10 min). AED 290.7M in Q3 2022 sales, with 8–12% appreciation by 2028 (e.g., AED 5M villa to AED 5.4M–5.6M). Golden Visa eligible (AED 2M+).
Impact: Exclusive lakefront living with luxury amenities. Tax savings (AED 255K–919K) and connectivity to Downtown Dubai (20 min) attract HNWIs from UK, US, and GCC.

Market Trends and Outlook for 2025

Yields and Appreciation: The UAE offers 6–9% ROI (apartments 7–9%, villas 6–8%) and 5–15% appreciation, driven by AED 298B in 2024 sales (25% YoY growth) and 5–10% rental growth. Off-plan sales (65% of transactions) dominate, with 20,000 units expected by 2028. Prices rose 10–15% in 2024 (AED 1,222–30,000 psf).
Freehold and Tax Environment: Freehold laws since 2002 allow 100% expat ownership in designated areas, with inheritance rights, boosting demand (AED 15B in waterfront transactions in 2024). Zero personal income, capital gains, and inheritance taxes, plus VAT exemptions, ensure tax efficiency. RETT (2% in Abu Dhabi/RAK, 4% in Dubai) drops to 0.125% via gift transfers, saving AED 5K–15.589M. Free zone entities (e.g., ADGM, RAK FTZ) offer 0% corporate tax. No RETT changes confirmed for 2025.
Infrastructure Impact: Zayed International Airport, Etihad Rail, and UAE Vision 2030 boost values by 5–8%. Tourism (20.4M visitors in 2024) and 85–90% occupancy drive rental demand (AED 500–3,000/night short-term). Sustainable Blue Economy initiatives and cultural hubs (e.g., Louvre Abu Dhabi) enhance appeal.
Investor Drivers: Freehold status, 100% foreign ownership, and flexible payment plans (5–10% down) fuel 60% of demand. Golden Visa eligibility (AED 2M+) and waterfront lifestyles attract buyers from UK, US, GCC, and Asia. Branded residences (e.g., Address Hotels) and eco-friendly designs drive end-user demand.
Risks: Oversupply (20,000 units by 2028), AML compliance costs (AED 2K–7K), and off-plan delays pose a 5–10% correction risk in H2 2025. Mitigated by 85–90% absorption, escrow accounts, and RERA/DMT regulations.
Regulatory Framework: DMT (Abu Dhabi), DLD (Dubai), and RAK Land Department ensure transparency via digital portals. Escrow laws protect off-plan investments (e.g., Sobha Siniya Island, handover Q4 2025). Freehold zones allow inheritance rights for expats.

Investment Strategy

Diversification: Invest in Sobha Siniya Island (AED 1.2M–18M, 7–9% ROI) for eco-luxury, Ramhan Island (AED 1.5M–30M, 6–8% ROI) for exclusivity, Dubai Islands (AED 1.9M–20M, 6–8% ROI) for mixed-use appeal, Al Marjan Island Residences (AED 1.3M–20M, 7–9% ROI) for tourism-driven returns, Yas Bay (AED 1.5M–5M, 6–8% ROI) for vibrant lifestyles, Saadiyat Lagoons (AED 6.1M–15M, 6–8% ROI) for UAE nationals, or Jumeirah Islands (AED 5M–13.21M, 6–8% ROI) for lakefront prestige.
Entry Points: Off-plan units (5–10% down, e.g., Dubai Islands) offer flexibility. Ready-to-move units in Yas Bay suit immediate rentals (AED 30K–500K/year).
Tax Optimization: Hold properties personally to avoid 9% corporate tax or use free zone entities (ADGM, RAK FTZ) for 0% corporate tax. Use gift transfers (0.125% RETT) or payment plans to reduce costs. Recover input VAT (AED 2K–50K/year) via FTA registration. Consult advisors like Shuraa Tax for compliance.
Process: Verify freehold status and tax benefits via DMT, DLD, or RAK Land Department portals. Pay 2–4% RETT/DLD fee and secure NOC. Use platforms like Property Finder, Bayut, or uae-offplan.com. Required documents: passport copy, proof of funds, no UAE visa needed (except Saadiyat Lagoons for UAE nationals). Documents must be translated into Arabic and legalized.

Conclusion

In 2025, the UAE’s seven prime waterfront projects Sobha Siniya Island, Ramhan Island, Dubai Islands, Al Marjan Island Residences, Yas Bay, Saadiyat Lagoons, and Jumeirah Islands offer 6–9% ROI and 5–15% appreciation, backed by AED 15B in 2024 waterfront sales.

Freehold laws (since 2002) enable global ownership and inheritance, while tax advantages zero personal income, capital gains, and inheritance taxes, VAT exemptions, and gift transfers (saving AED 5K–15.589M) maximize returns. Sustainable features like green spaces, eco-friendly materials, and marine conservation align with UAE Vision 2030 and SDGs.

Despite a 5–10% correction risk from oversupply, 85–90% absorption, escrow protections, and infrastructure (e.g., Etihad Rail, Zayed International Airport) ensure stability. With affordability (20–40% below Dubai for Abu Dhabi/RAK), luxury branding, and connectivity (10–60 min to major hubs), these projects attract HNWIs, professionals, and investors from UK, US, GCC, and Asia. Real Estate