Its combination of natural beauty, planned development and investment opportunities makes it an attractive destination for property buyers. In this blog, we will find out the costs related to buying property in RAK and what you can expect in 2025.
Property Prices in RAK
You’ll be happy to hear that property prices in RAK are cheaper than in Dubai or Abu Dhabi. In 2025, you can find various options to fit different budgets.
Apartments
Apartment prices in Ras Al Khaimah change based on the location and features. You can get studio apartments starting at about AED 500,000, while bigger apartments with ocean views can cost up to AED 1.5 million or more.
Villas
If you want more room, villas in RAK offer good value. Prices for villas begin at around AED 2 million and can reach AED 5 million or more for high-end beachfront homes.
Popular Areas for Property Investment
RAK’s most desirable spots for property investment include:
These places combine beachfront living, resort-like features, and quick access to infrastructure.
Costs to Consider
When you plan your budget to buy property in RAK, you need to think about several fees and costs on top of the property price. Here’s a list of extra expenses you should expect:
Land Department Fee
In RAK, you’ll pay a registration fee of 4% of the property value. This is a bit less than Dubai’s 4.5%, which makes RAK more appealing to investors. You’ll also need to pay a small admin fee of AED 580.
Real Estate Agent Fees
If you decide to use an agent, be prepared to pay about 2% of the property value as commission, plus 5% VAT.
Mortgage Costs
If you’re getting a mortgage, you’ll need to consider these related costs:
- Mortgage Registration Fee: 0.25% of the mortgage amount, plus AED 290 administrative fee
- Bank Arrangement Fee: This ranges from 0 to 1% of the loan amount, plus VAT
- Valuation Fee: between AED 2,500 to AED 3,500, plus 5% VAT
Property Registration Fees
Properties above AED 500,000 have a registration fee of AED 4,000 plus 5% VAT to register the property under the new owner’s name.
Trustee Fee
A trustee fee of about AED 4,000 plus VAT might apply for foreign buyers in certain areas.
No Objection Certificate (NOC) Fees
A No Objection Certificate can cost between AED 1,000 and 2% of the selling price. The seller pays this fee to the developer.
Annual Service Charge
You may need to pay the annual service charge to the developer before you get the NOC.
Investment Potential
RAK real estate market shows signs of strong growth. Property deals have jumped up, with a 70% rise from 2020 to 2024. Experts think this trend will keep going, making it a good choice for investors.
Rental Yields
One thing that makes buying property in RAK so attractive is the high rent you can charge. You can expect to earn between 7-11% on average across RAK neighborhoods. This is much better than the 3-4% you’d get in pricier UAE cities.
Off-Plan Properties
To get the most out of your investment, you might want to look at off-plan properties . These often come with good payment plans and lower starting prices. By 2025, developers plan to build over 14,000 new units, and 40% of these will be branded homes.
Economic Growth and How It Affects Property Prices
RAK’s economy keeps growing in new areas like tourism, manufacturing, and trade. This growth has an impact on the need for homes and business spaces, which might make property prices go up in the next few years.
Government Initiatives
The RAK government backs the property market. New rules now let non-citizens own 100% of properties in certain areas making it simpler for people from other countries to buy property here.
Sustainability Focus
If you care about the environment, you’ll like that RAK now puts more effort into building things that last. Many new projects use eco-friendly tech and green building methods, which could boost property values.
Conclusion
Investing in Ras Al Khaimah property allows you to enter a growing market without breaking the bank. RAK draws in homebuyers and investors with its high rental returns potential for value growth, and ongoing economic progress.
Before you buy, make sure to do your homework. Think about teaming up with a trusted real estate pro who knows the area well. They can guide you through buying and help you find a place that fits what you want and can afford.
Keep in mind that buying property in RAK costs less than in other emirates, but prices are likely to go up. If you’re considering purchasing, 2025 could be a good time to jump in. Do your homework and plan , and you might end up owning a part of this up-and-coming real estate market.
