RAK has become a real estate investment heaven with wonderful seaside developments, freehold ownership for expatriates, and extremely favourable policies for all investors. RAK, unlike Dubai or Abu Dhabi, has a competitive price structure supported by an affordable lifestyle, which is yet married to high rental yields and promising capital appreciation.
With a booming economy, a stable regulatory framework, and a visionary leadership class, investing in Ras Al Khaimah real estate with the Ras Al Khaimah rule of law is the choice that is safe and indeed rewarding. But before investing, one needs to get a good grip on the legal scenario to ensure conformity and facilitate smooth property transfer.
Who Can Buy Property in Ras Al Khaimah?
Foreign Ownership Rules
- International investors can buy property in designated locations including Al Marjan Island, Mina Al Arab , Al Hamra Village , and ZRAK Economic Zone.
- Foreign nationals may also rent land for a period of 99 years in leasehold areas.
- Expatriates investing in freehold properties may be entitled to long-term residence visas depending on the investment amount.
Types of ownership Structures
- Freehold Ownership: Given certain areas, it gives buyers full rights to ownership.
- Leasehold Ownership: This means the property is owned for a period up to 99 years after which all ownership rights shall revert to the landowner.
- Joint Ownership: International investors can join nationals or other foreign buyers to co-owner properties in designated areas.
Key Real Estate Laws & Regulations
Law No. 12 of 2023
On August 21, 2023, the Ruler of Ras Al Khaimah amended Decree No. 12 of 2023, providing new rules governing the real estate development sector. That would be called the โNew Lawโ by the people; it is, in fact, intended to reinforce the aspects of transparency, accountability and equality to the sector. It mentions not only the rights but also the responsibilities of the master developers, sub-developers and purchasers, thereby ensuring for them a secure and trustworthy environment in carrying out real estate transactions.
Real Estate Register Law (Law No.11 of 2021)
The existence of the Real Estate Register was made official by Law No. 11 of 2021. The Real Estate Department at the RAK Municipality has the Real Estate Register under its jurisdiction. All real estate properties in Ras Al Khaimah, including off-plan properties, are recorded in the register, which constitutes decisive evidence of property rights.
Role Of RERA
The Ras Al Kahimah Real Estate Regulatory Authority RERA is a crucial organization simply implemented to regulate activities in the real estate sector in Ras Al Khaimah. RERA Ras Al Khaimah controls real estate activities in Ras Al Khaimah to ensure the fair and transparent treatment of all property transactions. It protects consumer rights through due enforcement of the law and by stopping fraudulent practices.
Property Registration & Title Deeds
- Every property transaction should be registered with RAK Municipality & RAK Real Estate Authority (RAK REA).
- Buyers and owners must ensure the title deed renewal in RAK as and when required under the Ras Al Khaimah Rules and Regulations, in order to maintain a clear ownership and legal standing of their properties.
- It provides the title deed to buyers, which serves as proof of ownership from the Department of Land and Property.
- Registration fees for property purchases are 2-4% of property value, this is the Ras Al Khaimah Property Transfer fee percentage 2025.
Landlord & Tenant Laws
- All agreements for rent are required to be registered with Ejari RAK to ensure legal clarity between the landlord and tenant.
- Rent increase rates are governed by the RAK guideline of REA to ensure no exorbitant rental increments.
- Tenants have rights to fair eviction policies and reasonable renewals.
Mortgage & Financing Laws
- There are several mortgage options available to expats who wish to apply for a UAE bank loan secured by 75% LTV for first-time buyers.
- RAK Central Bank regulations govern mortgage terms and interest rates.
- The minimum down payment required for an expat buyer to secure a mortgage loan is 25% of the property price.
Inheritance & Property Transfer Law
- RAK laws on inheritance are based on Islamic Sharia, but an expatriate can execute a will through the Dubai International Financial Centre (DIFC) Wills Service Centre that names heirs to the expatriateโs property.
- RAK REA needs to give approval for the transfer of any property to non-family members so that transparency in ownership changes is maintained. Moreover it also addresses the ownership based on inheritance in RAK as well as the ownership of inherited property in RAK.
Benefits of Investing in Ras Al Khaimah
- Zero Property Tax: Capital gains overdose, but does not incur annual property tax and inheritance tax.
- Opportunity High ROI: Demand for resorts and short-term vacation rental properties is increasing.
- Investor Friendly Regulations: The government supports foreign ownership, which makes the process of purchase and selling of properties very easy.
- Completely Affordable Compared to Dubai and Abu Dhabi: These property prices are lower but also offer top-notch amenities and infrastructure.
- Residency Visa for Investors: Property owners are qualifying for 10-year Golden Visas or 5-year residency visas.
Common Legal Pitfalls & How to Avoid Them
- Not Verifying Title Deed: Always check legally that the property has a title deed on it, which means that the title has to be in the name of a person.
- Skipping Legal Consultation: Employing a real estate lawyer will help to investigate the contracts to ensure that any contract is transparent and legal.
- Ignoring Service Charges and Maintenance Fees: Investors will have to include the annual maintenance fees as variable depending on the type of property under consideration and also its location.
- Confusing Between Leasehold and Freehold Terms: First clear on what type of ownership you are buying.
Can foreigners buy property in Ras Al Khaimah?
Yes, foreigners can invest in property in Ras Al Khaimah through freehold ownership. The emirate utilizes RAK RERA (Ras Al Khaimah Real Estate Regulatory Authority) to provide a clear legal framework around property ownership, protect buyers and provide a straightforward process. Expats can own the freehold of a property in designated areas and can purchase leasehold properties, as well. RAK RERA also oversees tenancy contracts in RAK, which support clarity between landlords and tenants.
Can foreigners buy properties on Al Marjan Island?
Al Marjan Island is a go-to place for foreign investors in Ras Al Khaimah. It contains luxury apartments, villas, and waterfront residences with freehold ownership. Most importantly, Al Marjan Island is supported by the Ras Al Khaimah Real Estate Regulatory Authority which validates secure ownership for expatriates. Here are some projects to consider on Al Marjan Island:
| Project Name | Property Type | Key Considerations |
|---|---|---|
| Fortune Bay Residences | 1 to 3 BR Apartments | Luxury units facing the island, available with as low as 5% down. Very tailored easy payment plan of 70:30, many world class amenities, landscaped gardens, beach access, and next door to the Wynn Casino |
| Damac Al Marjan Residences | 1 to 5 BR Apartments/ Townhouses | Waterfront luxury with flexible 30:70 payment plan, ground and rooftop amenities, developed by DAMAC in partnership with Vincent Faudemer, in a peaceful waterfront locality |
| Sunshine Bay | Studio, 1 and 2 BR Apartments | A 12-story luxurious tower housing 240 premium apartments; contemporary living with world-class amenities, tranquil island location, and easy connect to the rest of RAK |
| Address Residences by Emaar | 1 to 4 BR Apartments/ Townhouses/ Penthouses | Managed by Address Hotels + Resorts, this resort experience themed development as part of a resort experience, with resort experience amenities, flexible 10:90 payment plan, luxury residences as part of a boutique collection of 161 units. |
| Ellington Costa Mare | Studio, 1 to 3 BR Apartments | A sophisticated four tower development with beachfront living, cabanas, infinity pools, spa, gym, outdoor cinema, social lounge, and a retail destination within a lush modern landscape. |
| One Central | Studio, 1 and 2 BR Apartments | Sea-facing studios and apartments in a boutique development of only 312 units; buyers can enjoy a 60:40 post-handover plan as well as modern fitness center, pool, gardens, and proximity to the Wynn resort. |
Final Thoughts: Is RAK The Right Investment Destination?
RAKโs market in reality is safe, affordable, and returns; therefore, it offers a golden opportunity for international buyers. A great regulatory framework within the emirate ensures that property transactions are fair and, most of all transparent; therefore, attracting investors as well as end users.
Thinking of investing in Ras Al Khaimah? Consult with Top Luxury Property experts to see what best opportunities are available and get a profitable investment!
