High landscapes, thrilling adventure experiences, and prime resorts- all in one place. But what is driving all this change?
The answer is tourism! RAK has been strategically targeting high-paying tourists, which has had huge contributions toward impacting property demand. Therefore, if you’re thinking, today might be the best moment.
Why Tourism is Rising in Ras Al Khaimah
Ras Al Khaimah also has its own reasons that fuel the growth of tourism within its region. These factors comprise cultural heritage and adventures. It includes Jebel Jais Flight, the world’s longest zipline and world-class resorts. Ras Al Khaimah Tourism Development Authority already recorded 1.22 million overnight stays during the first half of the year 2024, 8 % increase compared to last year’s report. International visitors are supporting such growth by 24%. This growth underlined that the emirate is slowly being appealed as a vacation spot.
A large part of the emirate’s strategic plan, RAk is trying to increase tourism contribution from 5% to one-third by 2030. Wynn Al Marjan Resort , the UAE’s first gaming casino is fulfilling that vision. It not only attracts tourists to the place but also builds the emirate as an attractive investment hub.
Accessibility improvement and Ras Al Khaimah International Airport expansion will make the emirate more accessible and attractive to visitors and investors alike.
Best Places to Visit in Ras Al Khaimah.
Jebel Jais: Jebel Jais is the tallest mountain in the UAE, known for panoramic views and a host of adventure activities, ranging from hiking to zip-lining. It has also hosted several events, including mountain concerts and adventure festivals, attracting tourists from all over the world.
Dhayah Fort: This is a historical place that offers panoramic views of the sea and mountains. It is the only hilltop fort remaining in the UAE and holds significant historical value.
Al Marjan Island: This man-made wonder accommodates luxury resorts, beachfront properties, and multi-billion-dollar Wynn Resort. Four islands - Breeze, Treasure, View, and Dream Island - have leisure, fine dining, and luxury beach life on offer.
Ras Al Khaimah National Museum: Good for a closer view of local culture and history. The museum has an array of traditional exhibits showing what is in and out about the emirate’s past and heritage, thus making it a good educational yet entertaining visit.
These places make RAK diverse and interesting, an added factor pushing the demands for hospitality and real estate purposes. The emirate’s combined beauty of nature with other modern attractions will give them a round-tourist experience, adventure, relaxation, or any other cultural experience.
Impact Tourism Geospatial Ras Al Khaimah on Real Estate
Tourism in the region has had some very effective impacts on RAK’s real estate sector, thereby opening several investment opportunities within all segments: short-term rentals, long-term rentals, and property sales. Let’s break them down:
Short-term Rentals
With the increased tourism, demand for short-term rental properties has increased, therefore areas like Al Marjan Island and Mina Al Arab are in great demand. Many homeowners prefer to rent their properties to visitors because it has presented attractive rental yields. The report of Dubizzle H1 2024 noted that the average rising trend in Al Marjan Island stands at 21.28% in rent, while Mina Al Arab has a rising trend of 19.05% in rental demand with an average annual rent of AED 52K.
Long-Term Rentals
The booming tourism sector has also attracted expatriates and professionals to RAK, as long-term rentals are high in demand. Al Hamra Village is one area that is witnessing an increase in rental prices. For a 1-bedroom apartment, the rental price witnessed an increase of 12.82%, while a 2-bedroom apartment increased by 26.79%. Long-term rentals are highly in demand among professionals working in the hospitality and tourism sectors who value convenience and luxury. Further asserting that the average annual rent of a 2-bedroom apartment on Al Marjan Island increased by 10%, which equals AED 77K, interest for high-quality rental properties has remained sustained.
Buying Habits
The Ras Al Khaimah real estate market has developed greatly, with diversification from new developments and tourism expansion. Investors are focusing mainly on properties in Al Hamra Village , Al Marjan Island, and Mina Al Arab , mostly on holiday homes and beachfront villas.
According to the Dubizzle H1 2024 market report, Al Hamra Village emerged as a leading purchaser of apartments in terms of average price increases by 34.53% to AED 1.12M. Villas at Al Hamra Village and Mina Al Arab shot up for both local and international purchasers.
Al Marjan Island is one of the rising averages in square-foot price, indicating an increasing appeal for luxury waterfront living at a rate of 29.13%.
Hospitality sector growth
The hospitality sector has witnessed significant growth in RAK. Wynn Al Marjan Island is a game changer. It will be the first gaming resort in MENA, attracting very high tourist footfall, which will influence the hospitality industry accordingly.
With luxury brands launching branded residences and five-star resorts, this new project attracts high-net-worth individuals and investors who want a place in it, believing it has tremendous potential in returns it would fetch in the future. The Al Marjan Island area has also seen increased demand for high-end hospitality options, and resorts such as The Ritz-Carlton are expanding their footprint, making it one of the most luxurious destinations in the Emirates.
Return on Investment (ROI) Improvement
Rak is not far away from Dubai and Abu Dhabi in terms of ROI. Yasmin Village, for instance, has recorded the highest ROI at 10.72% for apartments, whereas Al Hamra Village and Al Marjan Island maintained a strong ROI in the villa segment. Apartments in Al Marjan Island bring an ROI of 3.27 % and Al Hamra village 5.42%.
The returns have been very strong in all areas, especially high-tourism areas. Dafan Al Nakheel reflects a 7.47% return, making it a popular buy for those who require a rental income from very accessible properties within the city.
Why Now is the Best Time to Invest in Ras Al Khaimah
The Ras Al Khaimah Property Market is currently in an opportune growth phase for investment. Tourism has grown, new mega-developments have been launched, and the government has been supporting tourism projects, which positively affect property values. According to recent trends from Dubizzle’s H1 2024 RAK Property Market Report, this shows:
Apartment Sales
The average sales price of flats in RAK increased; Al Marjan Island’s average price was AED 2.87M, 29.13% up from H2 2023. Mina Al Arab was also increasing at 31.32% to take the average price for a 2-bedroom apartment at AED 2.48M. The high demand for such properties shows confidence in these properties going forward.
Villa Market
Villas in Al Hamra Village continue to appreciate by 14.60%, while properties in Mina Al Arab are also steadily appreciating, with an average sale price for a 4-bedroom villa at AED 4.57M. Villa sales on Al Marjan Island have actually appreciated slightly higher, at AED 18.01M. This again shows keen interest and demand for luxury high-end property.
Given these growth figures, investors can expect to see a high return on investment in the medium to long term. Increased interest in luxury tourism and hospitality developments will again boost demand for premium real estate in the emirate. UAE government measures to provide longer-term Golden visas and relaxed foreign ownership regimes make it easier for international investors to buy properties in RAK, providing additional incentives for investment.
Top Investment Areas in Ras Al Khaimah
Al Hamra Village
This area is recommended to those wishing to invest in a waterfront lifestyle, golf courses, and strong community amenities. At the moment, the average price for a 2-bedroom apartment is AED 1.81M, with a 5.42% ROI. The villas here are very in demand. Prices start at AED 2.2M for a 3 to 5-bedroom and reach AED 13.96M; so your options depend on your area of interest as an investor.
Al Marjan Island
Al Marjan Island suits luxury investors interested in high returns through the rental yield. It has a peak appreciation of the island area, and the apartments already feature an ROI of 3.27%. The villas, though a bit premium, rack up AED 11.57M per average price for a 4-bedroom unit. The locality is in high demand mainly from people with high-end requirements and investment return prospects.
Mina Al Arab
Known for its waterfront setting and increasing popularity, this area provides a balance of growth. Apartments are sold at an average of 31.32% higher than sales prices. Its ROI is 3.09%. The villas in Mina Al Arab also offer competitive returns, with average prices for 3-bedroom villas at AED 2.81M.
Conclusion
Ras Al Khaimah has a growth curve, and it possesses investment opportunities that are enhanced by the growth in the tourism sector and new developments supported by the government. Property value and the rental yield trend upwards, making this an excellent opportunity to invest in the property market.
Whether you look at short-term rental income, long-term capital gain, or just entering hospitality, it’s evident that RAK is impressive in terms of return on investment and growth opportunities. The best time for you to diversify an investment portfolio is today and, hopefully, look into properties of Ras Al Khaimah.
Start by exploring properties in Al Marjan Island, Al Hamra Village, and Mina Al Arab, and secure a future in one of the UAE’s most promising real estate markets.
