UAE Luxury Property: 5 Prime Deals Closing in June 2025

REAL ESTATE4 hours ago

The UAE’s luxury real estate market in June 2025 is thriving, contributing to AED 893 billion ($243 billion) in 2024 transactions, with Dubai alone recording AED 193 billion in Q1 2025. Luxury properties (AED 10 million+/ $2.72 million+) saw 111 super-prime deals worth AED 7 billion ($1.90 billion) in Q1 2025, per Knight Frank, outpacing New York and London.

Driven by 45% foreign buyer demand, no personal income tax, 9% corporate tax (Federal Decree-Law No. 47 of 2022), and 5% VAT (Federal Decree-Law No. 8 of 2017), the UAE offers 6-9% rental yields. Below are five prime luxury deals closing in June 2025 across Dubai and Abu Dhabi, their investment potential, tax incentives, and actionable steps for compliance with Federal Tax Authority (CTA) regulations.

1. Jacob & Co Beachfront Residences (Saadiyat Island, Abu Dhabi)

Overview: Closing June 30, 2025, this project offers 3- to 5-bedroom branded residences and penthouses starting at AED 15 million ($4.08 million), with a 60/40 payment plan and Q2 2026 handover. It yields 6-7%, near Saadiyat Cultural District.
Why It’s Prime: Ultra-luxury amenities (private pools, concierge) and 25% year-on-year price growth on Saadiyat Island make it a top choice for high-net-worth individuals, with 10-12% appreciation by 2030.
Tax Incentives: VAT-exempt leases save 5% (e.g., AED 50,000 on AED 1 million rent). U.S.-UAE DTA credits offset U.S. taxes via IRS Form 1118.
Action: File IRS Form 1118, verify developer compliance with ADRE, ensure AML/KYC compliance for high-value deals, and retain records for CTA audits.

2. Emaar Grand Polo Club & Resort – Selvara Phase 2 (Meydan, Dubai)

Overview: Closing June 28, 2025, Selvara Phase 2 offers ultra-luxury 4- to 6-bedroom villas starting at AED 12 million ($3.27 million), with a 70/30 payment plan and Q3 2027 handover. It yields 6-8%.
Why It’s Prime: Exclusive polo club access and proximity to Downtown Dubai (15 minutes) drive demand, with 7-10% appreciation projected for 2025, per DAMAC Properties.
Tax Incentives: VAT-exempt leases save 5% (e.g., AED 40,000 on AED 800,000 rent). Corporate tax deductions apply for management fees (e.g., AED 27,000 on AED 300,000 expenses).
Action: Verify Emaar’s compliance with DLD, engage RERA-registered agents, and document expenses for CTA audits.

3. Nobu Residences (Saadiyat Island, Abu Dhabi)

Overview: Closing June 25, 2025, this project features 2- to 4-bedroom apartments and penthouses starting at AED 10 million ($2.72 million), with a 60/40 payment plan and Q1 2026 handover. It yields 6-7%, with a record-setting AED 137 million penthouse sale.
Why It’s Prime: Branded luxury with Nobu’s dining and beachfront access drives 10-12% price growth, per Top Luxury Property, appealing to global elites.
Tax Incentives: VAT-exempt leases save 5% (e.g., AED 50,000 on AED 1 million rent). U.S.-UAE DTA credits offset U.S. taxes via IRS Form 1118.
Action: File IRS Form 1118, ensure AML/KYC compliance via ADRE-registered brokers, and consult CTA advisors.

4. DAMAC Bay 1 by Cavalli (Dubai Harbour, Dubai)

Overview: Closing June 20, 2025, this waterfront project offers 2- to 5-bedroom apartments and duplexes starting at AED 10 million ($2.72 million), with a 70/30 payment plan and Q4 2026 handover. It yields 6-8%.
Why It’s Prime: Cavalli-branded interiors and proximity to Dubai Marina (10 minutes) attract luxury buyers, with 7-10% appreciation in 2025, per DAMAC Properties.
Tax Incentives: VAT-exempt leases save 5% (e.g., AED 40,000 on AED 800,000 rent). VAT-registered investors recover 5% input VAT on furnishing costs (e.g., AED 50,000 on AED 1 million).
Action: Verify DAMAC’s compliance with DLD, register for VAT if needed, and use RERA agents for AML/KYC compliance.

5. Waldorf Astoria Residences (Al Reem Island, Abu Dhabi)

Overview: Closing June 15, 2025, this project offers 3- to 5-bedroom residences and penthouses starting at AED 12 million ($3.27 million), with a 60/40 payment plan and Q2 2026 handover. It yields 6-7%.
Why It’s Prime: Branded luxury and Al Reem Island’s AED 1 billion in Q1 2025 transactions drive 7-9% price growth, appealing to end-users and investors.
Tax Incentives: VAT-exempt leases save 5% (e.g., AED 50,000 on AED 1 million rent). U.S.-UAE DTA credits offset U.S. taxes via IRS Form 1118.
Action: File IRS Form 1118, verify developer compliance with ADRE, and retain records for CTA audits.

Why These Deals Matter

These deals, closing in June 2025, align with the UAE’s luxury market surge, with 111 super-prime deals in Q1 2025 and a 158% year-on-year increase in Abu Dhabi’s resale luxury transactions (AED 3 billion). Driven by 8.68 million tourists in Q1-Q2 2025, a 5% population increase to 3.93 million, and infrastructure like Al Maktoum Airport, these properties offer 6-9% yields and Golden Visa eligibility. Smart home technologies and PropTech enhance appeal.

Tax Tools for American Investors

U.S.-UAE DTA: Credit UAE taxes against U.S. tax liability via IRS Form 1118, preserving 10-15% returns.
Zakat for Muslim Investors: Pay 2.5% Zakat on rental income (e.g., AED 20,000 on AED 800,000 rent), not property value. Consult Islamic scholars.
VAT Recovery: Recover 5% input VAT on costs like fit-outs (e.g., AED 50,000 on AED 1 million).

Market Outlook and Challenges

June 2025 forecasts 7-10% price growth for luxury properties, with Saadiyat Island and Dubai Harbour at 10-12%, but oversupply risks (210,000 units by 2026) and a potential 5-10% correction loom. Stricter AML/KYC rules for transactions above AED 5 million and the DMTT’s 15% rate for multinationals increase costs. Non-compliance with CTA filings (nine-month corporate tax, 28-day VAT deadlines) risks penalties up to AED 10,000.

Conclusion

Jacob & Co Beachfront Residences, Emaar Grand Polo Club & Resort – Selvara Phase 2, Nobu Residences, DAMAC Bay 1 by Cavalli, and Waldorf Astoria Residences are five prime luxury deals closing in June 2025. Offering 6-8% yields, tax incentives like VAT exemptions and DTA credits, and prime locations, they provide American investors with high ROI potential. Compliance with RERA, ADRE, and CTA regulations ensures success in the UAE’s booming luxury market.