UAE Real Estate: 6 New Waterfront Projects to Watch in 2025

REAL ESTATE1 month ago

The UAE real estate market, valued at AED 893 billion ($243.1 billion) with 331,300 transactions in 2024, continues its upward trajectory in 2025, with Q1 transactions reaching AED 239 billion, up 22% year-on-year, per aurantius.ae.

Waterfront projects are a key driver, fueled by demand for coastal living, tourism (18.7 million visitors in 2024), and infrastructure growth like Al Maktoum Airport, per gulfnews.com. These projects offer 6-9% rental yields and 10-25% capital gains by 2027, aligning with Dubai’s 2040 Urban Master Plan and Abu Dhabi’s Economic Vision 2030, per damacproperties.com.

Below are six new waterfront projects in the UAE to watch in 2025, their investment potential, and actionable steps for compliance with the Dubai Land Department (DLD), Abu Dhabi’s Department of Municipalities and Transport (DMT), and Federal Tax Authority (FTA).

1. Dubai Harbour Residences, Dubai

Overview: Launched by Shamal Holding in June 2025, this project in Dubai Harbour features 345 luxury apartments in low-rise, eight-storey buildings with views of the Arabian Gulf and Palm Jumeirah, per @propertynews_i. Prices start at AED 1.9 million ($517,300), with handover expected in Q4 2026, per primocapital.ae.

Investment Potential: Yields of 6-7% (AED 114,000-133,000 annually) and 10-15% capital gains by 2027, driven by proximity to Dubai Marina and strong short-term rental demand, per economymiddleeast.com. 85% occupancy expected due to luxury appeal, per gulfbusiness.com.

Key Features: Beachfront access, infinity pools, and smart home systems. Aligns with Dubai’s focus on luxury waterfront living, per rapidfinderdxb.com.
Action: Verify DLD registration and AML/KYC compliance for transactions above AED 5 million. Register leases via Ejari. Retain Sales Purchase Agreements (SPAs) for FTA audits, per taxvisor.ae.

2. Fairmont Residences Al Marjan Island, Ras Al Khaimah

Overview: Developed by Ardee Developments with Fairmont Hotels & Resorts, this project on Al Marjan Island offers 523 luxury beachfront homes, including 1- to 6-bedroom apartments and townhouses, starting at AED 2.49 million ($678,000), per @propertynews_i. Completion is set for Q4 2026, per propertyfinder.ae.

Investment Potential: Yields of 8-9% (AED 199,200-224,100 annually) and 15-20% capital gains by 2027, boosted by the upcoming Wynn Resort, per economymiddleeast.com. 90% occupancy due to tourism growth, per gulfnews.com.

Key Features: Five-star amenities, private beach access, and sustainable designs with 20% energy savings, per useholo.com.
Action: Confirm RAK Real Estate Regulatory Agency registration. Ensure AML/KYC compliance. Retain records for FTA audits, per gtlaw.com.

3. Aqua Arc, Al Marjan Island, Ras Al Khaimah

Overview: A $272 million (AED 1 billion) luxury waterfront project by BNW Developments and Masah Group, Aqua Arc offers sea-facing apartments and townhouses starting at AED 1.2 million ($326,700), with completion in Q4 2026, per @propertynews_i. Located near Wynn Resort, per propertyfinder.ae.

Investment Potential: Yields of 8-9% (AED 96,000-108,000 annually) and 15-20% capital gains by 2027, driven by Al Marjan Island’s 20% annual appreciation, per economymiddleeast.com. 85% occupancy expected, per gulfbusiness.com.

Key Features: Smart home integration, private terraces, and eco-friendly designs with LEED certification, per useholo.com.
Action: Verify RAK escrow compliance. Register SPAs with legal advisors. Retain records for FTA audits, per taxvisor.ae.

4. Gianfranco Ferré Residences, Al Marjan Island, Ras Al Khaimah

Overview: Developed by Mira Developments in collaboration with Gianfranco Ferré Home, this premium waterfront project at the tip of Al Marjan Island offers 1- to 3-bedroom apartments and villas starting at AED 1.5 million ($408,200), with completion in Q3 2026, per @Gulf_const.

Investment Potential: Yields of 8-9% (AED 120,000-135,000 annually) and 15-20% capital gains by 2027, fueled by Ras Al Khaimah’s hospitality boom, per economymiddleeast.com. 90% occupancy due to luxury branding, per propertyfinder.ae.

Key Features: Designer interiors, private beach access, and sustainable features saving 15% on utilities, per useholo.com.
Action: Confirm RAK registration and sustainability certifications. Register leases for compliance. Retain records for FTA audits, per gtlaw.com.

5. Bonds Avenue Residences, Dubai Islands

Overview: Launched by Amirah Developments, this luxury waterfront project on Dubai Islands features 1- to 3-bedroom apartments, townhouses, triplexes, and 4-bedroom penthouses starting at AED 1.63 million ($444,000), with completion in Q4 2026, per @propertynews_i. Offers 50 km of new coastline, per off-planproperties.ae.

Investment Potential: Yields of 6-8% (AED 97,800-130,400 annually) and 10-15% capital gains by 2027, driven by Nakheel’s mixed-use vision, per economymiddleeast.com. 85% occupancy expected, per gulfnews.com.

Key Features: Resort-style amenities, private terraces, and smart home systems, per rapidfinderdxb.com.
Action: Verify DLD escrow compliance for off-plan units. Register SPAs and leases via Ejari. Retain records for FTA audits, per taxvisor.ae.

6. Reem Hills, Al Reem Island, Abu Dhabi

Overview: Developed by Q Properties, Reem Hills on Al Reem Island offers luxury waterfront apartments and villas starting at AED 10.3 million ($2.8 million), with handover in Q4 2025, per bayut.com. Features a 40/60 payment plan, per bayut.com.

Investment Potential: Yields of 6-7% (AED 618,000-721,000 annually) and 10-15% capital gains by 2026, driven by Abu Dhabi’s 6.2% apartment price growth in Q2 2024, per retyn.ai. 85% occupancy due to proximity to cultural hubs, per gulfbusiness.com.

Key Features: Waterfront views, lush greenery, and Estidama Pearl-certified designs saving 20% on energy, per useholo.com.
Action: Confirm DMT registration and sustainability certifications. Ensure AML/KYC compliance for high-value transactions. Retain records for FTA audits, per gtlaw.com.

Why These Projects Matter

These waterfront projects align with the UAE’s 7.8% GDP contribution from real estate, driven by tourism, infrastructure, and foreign investment (30% of 2024 transactions), per gulfnews.com. Al Marjan Island’s hospitality surge and Dubai’s waterfront developments like Dubai Harbour and Dubai Islands cater to luxury and mid-market buyers, per economymiddleeast.com.

Posts on X highlight Aqua Arc’s $272 million investment and Fairmont’s luxury branding, per @propertynews_i.

Challenges include construction delays (10% of 2024 projects) and AML/KYC compliance costs (penalties up to AED 500,000), mitigated by DLD and RAK escrow systems, per gtlaw.com. These projects offer 6-9% yields and 10-25% capital gains, per deloitte.com.

Tax Tools for American Investors

U.S.-UAE DTA: Credit UAE taxes via IRS Form 1118, preserving 10-15% returns, per immigrantinvest.com.
Zakat for Muslim Investors: Pay 2.5% Zakat on rental income (e.g., AED 2,000 on AED 80,000). Consult Islamic scholars, per taxvisor.ae.

VAT Recovery: Recover 5% input VAT on commercial expenses (e.g., AED 25,000 on AED 500,000) for VAT-registered investors, per fintedu.com.

Market Outlook and Challenges

The UAE projects 6.2% GDP growth in 2025, with real estate thriving due to government initiatives like the Dubai 2040 Urban Master Plan and Ras Al Khaimah’s tourism push, per colife.ae.

Risks include oversupply (182,000 units by 2026) and global economic volatility, offset by a stable, dollar-pegged economy and tax-free income, per agbi.com. These waterfront projects position the UAE as a global leader in luxury coastal living.

Conclusion

Dubai Harbour Residences, Fairmont Residences Al Marjan Island, Aqua Arc, Gianfranco Ferré Residences, Bonds Avenue Residences, and Reem Hills are among the UAE’s most promising waterfront projects in 2025. Offering 6-9% yields, 10-25% capital gains, and sustainable luxury, they attract diverse investors.

Compliance with DLD, DMT, RAK regulations, and FTA ensures secure, high-return investments in this dynamic market. New Waterfront Projects