But wait! What if I told you, there is a lesser-known market, yes even mainland investments, with high potential growth, that returns can easily surpass the giants? Ras Al Khaimah (RAK)—that’s what! Like you, a permanent investment seeker, you already know how important timing the market is and believe me RAK is that new market coming up in 2025.
Statistics indicate that in the past year alone, property prices in RAK have increased by 35% while rental rates are over 9% which is quite impressive as well. This is massive! With such robust and impressive development, RAK is not simply gaining its stand – it is hitting the ground running. This makes RAK an irresistible option and investment for anyone whether you are looking for a safe bet with great returns or hope to take advantage of an expanding marketplace. I won’t lie, I have put in the effort.
However, what really made me want to jump in? It’s not only the figures — it’s the way of life, the opportunities, and the future I have for RAK. From the very first moment I began researching the projects on Al Marjan Island and the up market, high-end luxury developments, and the hospitality revolution set to begin with the projects like the Wynn resort, I knew I was in for something different.
Ras Al Khaimah should definitely be on your list if you are on the lookout for an investment destination with long-term prospects that is on the verge of taking off. The future looks promising here - and believe me, you would want to be part of it. Let me explain to you why.
The Jewel of RAK: Al Marjan Island
For anyone looking to put their money into RAK, Al Marjan Island is definitely the place to visit. This artificial island has it all, from luxury waterfront flats to beautiful attached villas. With its strategic location, it has become one of the best investor locations, and this is why it is so.
To begin with, rental yields in Al Marjan Island are in the region of more than 9% which, as an investor, is really beneficial. There is more to this island than just figures though; the quality of life is exceptionally good. We are talking of beautiful sand beaches, eating places situated by the water and resort type of living. Also, with the presence of high-end developments like the Wynn Al Marjan Island resort which will be launched in the year 2026, it is for sure that the appetite for real estate in this area is going to increase tremendously.
Picture yourself as a property owner on an island that is destined for not only mass tourism but also high-value tourism. I could almost picture the reimbursement on investment coming in. And it’s not only me that thinks so.
According to Oliver Mitri, co-founder of Imobiliare Dubai, “Ras Al Khaimah offers a fresh perspective for real estate investors, combining high returns with untapped potential.”
What Sets RAK Apart From Dubai?
Hey, I have been to Dubai and I can tell it is awesome! It is stylish, dynamic and full of chances. However, the market over there is cut-throat. For example, RAK is comparatively new and still has a lot of opportunities that are yet to be exploited. There are no investors casting their poles in the same water, which is why it appealed to me so much.
In addition, the emirate of Ras Al Khaimah ensures a comfortable and quality lifestyle devoid of any tension. When I first set foot in RAK, it was evident that this place had something extraordinary. Differently, RAK was more chilled, Dubai having enormous city life felt rushed, this one had its nature and developing cities, with the mountains and ocean too.
The calming atmosphere attracts families with young children, as well as pensioners, resulting in long-lasting rentals in the areas. And as for the costs? Even now, much cheaper than both Dubai or Abu Dhabi, thus allowing investors like myself a lower barrier of entry with the promise of high returns in the future.
The Luxury Appeal: DAMAC’s Entry into RAK
I have a weakness for opulent infrastructure, and when I learnt that DAMAC is set to introduce to RAK its first-ever branded project in collaboration with Babolex, I just knew I had to get in. DAMAC has been one of the big players in real estate within the UAE and their unveiling in the RAK region only indicates how far this market can go.
This high-rise residential development will lure high net worth individuals and global buyers in search for privacy and class A facilities. From an investment perspective, this is rather interesting. Not only do you seek to penetrate an up market, but invest in a place which is just about to become hot. As such, we are seeing a growing demand for upscale real estate in RAK, and such developments are bound to increase property rates even more.
Wynn Al Marjan Island: The Game-Changer in RAK’s Real Estate Landscape
What I find particularly appealing about RAK is the increasing pace of development in its tourism sector. The emirate is making efforts to emerge as one of the key players in the UAE’s hospitality and tourism industry. I recall coming across the Wynn Al Marjan Island which is a huge multi-billion dollar resort set to open in the year 2026. Tourist arrivals are expected to be high which in turn is a huge advantage considering your profile as an investor.
That’s why I believe in this ripple effect. Because you see, the rise of tourism means that there will be more people looking for rental apartments which would lead to full occupancy with high rates and increase adjacent property values. The near-term prospects of owning a property within or near any of these hospitality centers are favorable.
Real Returns: What’s in it for Investors?
Now let’s consider the figures because that’s what everybody is interested in at the end of it all. In RAK, internal rates of return (IRR) range from 20% -30%, which is a figure I don’t come across in many other territories. What this means is that your investment is not idling and waiting; rather it is ‘working’ as you expect it to do.
Best Area to Invest In Ras Al Khaimah
Al Marjan Island
Al Marjan Island - a manmade island situated off the coast of Ras al Khaimah, has developed into a tourist and residential complex boasting several luxury hotels, resorts, and residential sections. In 2022, the property prices within the Al Marjan Island experienced considerable growth with apartment prices increasing at about 12% every year and it does not seem to be slowing down.
As developments continue and with new projects such as the Emaar Beachfront Residences in the pipeline, the region is likely to maintain its appeal to residents and visitors. Al Marjan Island Apartments also have an average return on investments calculated at 6 - 8% rental yields, which is favorable for investors.
Mina Al Arab
In addition, Mina Al Arab, a stunning waterfront project is located in Ras al Khaimah which houses expensive villas, apartments and even office spaces. As per the research conducted by Bayut & dubizzle in 2022, the villa prices in Mina Al Arab recorded an increase of nearly 15% over the previous year.
Due to the presence of amenities such as the beach, parks, and shopping centers, the region has both residential and commercial properties with a high level of demand. Mina Al Arab has also experienced steady capital appreciation of properties for many years.
Al Hamra Village
Al Hamra Village is a built-up area offering villas and townhouses. It is known for a very family oriented atmosphere and facilities such as schools, parks and shopping malls. In 2022, villa selling prices in Al Hamra Village increased by roughly 10% annually.
This region is favored by families as well as expatriates who seek a pleasant place to live. There is significant rental demand in Al Hamra Village because it is close to schools and other facilities.
RAK Downtown
The RAK Downtown area serves as the city’s business hub filled with towers, office buildings, and shops in Ras al Khaimah, UAE. Workplace rentals at RAK Downtown have shifted to a passive state but there are expectations of an increase owing to the inflow of more business establishments at this location.
Julphar Towers
RAK’s economy and physical development have been further supported and catalyzed with construction of mixed-use property called Julphar Towers, which contains many residential apartments and business office spaces. Recent market reports highlight that Julphar Towers apartments have recorded an annual price increase of about 8% for the last few years.
Its strategic placement renders it appealing for both occupancy and for business as it provides easy access to facilities. Average rental yields for apartments in this area roughly vary between 5% to 7%.
| Popular Areas | ROI | Studio | 1 bed | 2 bed |
|---|---|---|---|---|
| Al Hamra Village | 5.42% | AED 434,000 | AED 781,000 | AED 1,809,000 |
| Al Marjan Island | 3.27% | AED 682,000 | AED 781,000 | AED 2,966,000 |
| Mina Al Arab | 3.09% | AED 830,000 | AED 1,558,000 | AED 2,483,000 |
| Yasmin Village | 10.72% | NA | AED 276,000 | AED 328,000 |
| Dafan Al Nakheel | 7.47% | AED 355,000 | AED 532,000 | AED 846,000 |
Future Growth: What to Expect in 2025
And what do the predictions for RAK in 2025 look like? - Well, to sum it up due to every observation and research I have done, the future is bright. New projects are being announced by the developers, and some of the well-known corporations dealing in real estate within the UAE have entered the arena. The government is also well disposed towards development with policies that are encouraging to growth but do not compromise the natural beauty of RAK which is its selling point.
In terms of forecast, I perceive the growth of real estate prices as a persistent trend, particularly in strategic locations such as Al Marjan Island and Mina Al Arab. Construction activities are ongoing, and with the introduction of projects such as the resort stipulating Wynn, RAK is likely to position itself as a prime tourism-inclined investment region.
My Final Thoughts
In the year 2025, and with the question of investment in mind, I would like to recommend Ras Al Khaimah very highly and emphatically. I have been in this business long enough to be able to identify opportunities and RAK is one of them, an opportunity, yes.
With property prices on the rise, good rental returns and good prospects for the near future, this is one market that is about to take off. Whether you fancy a luxury property on Al Marjan Island or a decent priced one in the city, Ras Al Khaimah guarantees you that and even more.
Being an investor, I can assure that my tendency to Invest in Ras Al Khaimah is not mere coincidence. It was rather a calculated decision dictated by the facts, the figures and the prospects this emerging market presents. And if you are contemplating on where to invest your money next, I would suggest that RAK should definitely be right on top of your list.
