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You’ve likely heard about the booming property market in Ras Al Khaimah by now. As one of the fastest-growing real estate markets in the UAE, prices in RAK are rising rapidly. But did you know that the best returns are yet to come?
Major investments and developments fuel growth, driving prices even higher in the next few years. Investors who buy properties now will be in the best position to profit. But you’ll need to act fast before prices rise out of reach.
Let’s take a closer look at what’s driving the RAK property boom and why you don’t want to miss the opportunity to invest.
An Overview Of The Ras Al Khaimah Property Market
RAK’s property market is diverse, spanning luxury beachfront apartments on Al Marjan Island to villas in suburban areas to fit all budgets. For years, it was overshadowed by Dubai. Still, it is changing fast as investors give attention to the high rental yields, affordable prices, and business-friendly policies of Ras Al-Khaimah.
Some key advantages of the RAK property market include:
Affordable Prices: Property prices in RAK are substantially lower than those in Dubai for comparable options. This implies the investors achieve their earnings targets.
High Rental Yields: The tourism and population increase have made properties in RAK have rental potential as much as 10% higher than in Dubai.
Increased Infrastructure: Several investments have been made in roads, hospitals, schools and other infrastructure to support RAK’s fast growth.
Business Friendly Environment: RAK grants 100 percent foreign ownership, zero-pay income tax, and rapid visa issuance, and speedy business setup.
Stunning Natural Landscapes: RAK’s splendid beaches, wadis and towering Hajar Mountains provide a stunning setting that attracts tourists.
RAK enjoys a unique mix of scenic wonders and an affordable and business-friendly climate, making it a rising tourism and real estate investment stronghold. The time is ripe to invest there, as property prices will move higher in the near future.
Why Experts Recommend Investing In RAK Right Now ?
Real estate experts predict RAK property values will surge over the next five years, driven by major tourism projects, infrastructure expansion, and market dynamics. Here’s why they advise investing sooner rather than later:
RAK Is Experiencing A Surge In Foreign Investment
Over the past couple years, RAK has seen a huge inflow of foreign investment pouring into the emirate. This is basically thanks to one game-changing development – the Wynn casino resort.
Scheduled to open in 2027, the $3.9 billion Wynn Al Marjan Island resort will be the vicinity’s first integrated on line casino lodge. This has drawn huge hobby from international traders looking to coins in at the tourism increase it will create. Additional inns like the JW Marriott also are inside the works.
The spike in funding is already paying off. In the primary half of of 2023 alone, tourism revenue in RAK grew almost 65% 12 months-over-year. As the emirate establishes itself as a nearby tourism hub, call for for houses will only boom further.
New Projects Are Selling Out Fast
Major developers have taken note of RAK’s hot market. Properties across the emirate, especially in prime areas like Al Marjan Island, are selling out rapidly as new projects are released.
For example, the complete inventory of Cape Hayat On Hayat Island was reported sold out. Other projects like The Beach Residences At Al Marjan Island by Range Ras Al Khaimah are also finding eager buyers.
As land and property availability becomes scarcer, prices will continue their upward climb. It will soon be too late for investors on the sidelines to capitalize on today’s entry levels.
Major Tourism Growth And Upcoming Projects
On the other hand, RAK’s tourism numbers have skyrocketed in recent years thanks to marketing campaigns showcasing the emirate’s mountains, beaches and cultural sites. Ras Al Khaimah Tourism Development Authority (RAKTDA) welcomed a record 1.22 million overnight arrivals in 2023, up eight per cent on 2022 numbers and a 24 per cent increase in international visitors.
Major upcoming projects, like the Address Residences By Emaar (2028 opening), JW Marriott Residence (2026 opening), and the $3.2 billion Wynn Resort with a gaming facility (2027 opening), will attract more tourists and business activity.
Shubam Aggarwal, Chairman and Co-owner of The Luxe Developers, said:
“We are highly encouraged by the latest figures emerging from both the real estate and tourism sectors in Ras Al Khaimah. The upward trend in these markets is reflected in the strong interest that we have received for our flagship Oceano project, and we’re particularly buoyed by the outlook for 2024.”
As tourism expands in RAK, the property market will have a ripple effect, increasing demand for hotels, furnished apartments, second homes and mixed-use complexes near attractions.
Strong Economic Fundamentals
RAK has also worked diligently over the past decade to diversify its economy beyond natural resources and expand into tourism, manufacturing, real estate, and financial services.
RAK’s GDP has tripled in the past 10 years. It weathered the pandemic better than most emirates. After that, Ras Al Khaimah’s GDP growth is expected to average 2.7% annually from 2022-2025, with continued fiscal surpluses to support a government net asset position of nearly 13% of GDP by 2025.
RAK also has relatively low debt obligations compared to other emirates, giving it financial leeway to invest further in infrastructure and incentives for residents and investors. As RAK continues expanding its economy, the property market will benefit.
Manoj Garg, CEO of Top Luxury Property , predicts:
“RAK is establishing itself as a dynamic emerging market within the UAE. The government is aggressively pursuing policies to sustain long-term economic growth, and this will undoubtedly have positive spillover effects on real estate.”
RAK’s strong economic performance and expansion will stimulate continued population growth, business activity, and property demand.
Attractive Incentives For Residents And Investors
RAK actively offers incentives to attract residents and investors, including:
- 100% foreign ownership of properties and businesses outside certain zones. This is rare regionally.
- No personal or corporate income taxes.
- Fast Visa Processing with 5-7 day visas for property buyers.
- Minimal restrictions on repatriating profits and incomes.
- RAK Business Hub incentives like 50-100% fee reductions for license set-up and flexi-desk options.
- Free trade zones with 0% corporate tax to attract offshore companies.
By dangling these carrots, RAK has succeeded in driving up investment. Savvy investors can use RAK’s business-friendly policies and incentives that maximize returns.
Significant Year-On-Year Capital Appreciation
Experts forecast property values to rise 20-30% annually in RAK’s freehold areas over the next 5 years, primarily places like:
- Al Marjan Island
- Mina Al Arab
- Al Hamra Village
“We see great potential in Ras Al Khaimah,” says Mohammed Asaria, Managing Director and Member of the Board of Range Developments. “It has all the attributes we like to see such as a robust and diversified economy.”
These double-digit price inflations eclipse anywhere else in the UAE. And you’ll earn them through smart property investing in RAK now. Compare that to ultra-luxury Emaar Beachfront apartments priced from Dh2,800 psf and higher – out of reach for most buyers. New projects on Al Marjan Island start at half that rate. Here is the average ROI in Ras al Khaimah.
| POPULAR AREAS | ROI |
|---|---|
| Al Hamra Village | 7.17% |
| Al Marjan Island | 6.32% |
| Mina Al Arab | 6.35% |
| Yasmin Village | 11.61% |
| Dafan Al Nakheel | 7.03% |
Clearly, RAK properties let you maximize returns on investment that outpace other emirates. Things will only accelerate as developers rush to build more inventory.
Excellent Rental Income Potential
The average rental yield on apartments in RAK is 8-10%, significantly higher than the 3-5% returns in Dubai. Villas also generate strong yields at 6-8%.
Several factors drive RAK’s high rental yields:
- Cost of living is lower, so tenants pay less.
- High tourism means strong demand for short-term rentals.
- RAK appeals to tenants working in Dubai but seeking more space and affordability.
- RAK draws commuters from other Northern Emirates where housing undersupply persists.
RAK provides excellent rental income potential for buy-to-let investors or those considering co-living. Even a small 1-bedroom apartment purchased today could generate 8%+ returns year after year in rental income.
Wynn, Aldar, And EMAAR: The Big Players Flock To RAK
Names like Wynn Resorts, EMAAR, and Aldar aren’t pioneer developer brands in RAK. Still, their major project announcements proved pivotal in shining an international spotlight on the emirate.
Following years of rapid development, RAK caught their attention thanks to
- Affordable land plots with waterfront access
- Strong tourism and economic growth
- Developer-friendly regulations
Let’s see what mega plans are unfolding here:
Wynn Building, the Middle East’s First Integrated Resort
The late 2021 confirmation that Las Vegas gaming giant Wynn Resorts received a license for an integrated resort with a casino catalyzed the RAK property’s meteoric price rise.
Scheduled to open in early 2027 on Marjan Island, the resort called ‘Wynn Al Marjan Island’ boasts:
- 5-star luxury hotels with approximately 1,500 rooms, suites, and villas
- Gaming area
- 24 dining and lounge venues
- Luxury shopping malls, theatres, and event spaces
- Nightly entertainment shows
RAKEZ Group CEO Ramy Jallad said this $4 billion beachfront development “has the potential to significantly impact Ras Al Khaimah’s economy” by attracting global investors plus more resorts, hospitality, and real estate projects.
Given its ambitious scale and activities, Wynn Al Marjan cemented RAK as the UAE’s up-and-coming leisure destination.
Aldar Sells Out The 1st RAK Project Phase In Days
On the heels of the Wynn announcement, Abu Dhabi Mega-Developer Aldar announced its beachfront development Nikki Beach Residences .
To test demand, they released a limited Phase 1 of 420 apartments priced from 1.5 million AED upwards. It completely sold out in a few hours! Total sales value hit 1 billion AED.
The strong response to the project in Ras Al Khaimah “has validated our long-held view that the market is primed for a branded residential product that facilitates short-term stays”, said Rashed Al Omaira, chief commercial officer at Aldar Development.
He added that the developer has a strong appetite for further investments across RAK’s hospitality, residential, and commercial sectors. This massive response proves an insatiable appetite for RAK luxury real estate.
EMAAR Launches RAK Beachfront Homes
Not one to miss out on hot property markets, Dubai’s Leading Master Developer EMAAR , is also entering RAK.
They launch Address residences at Al Marjan island. Offering luxury-class 1, 2, 3 bedroom apartments, 4 bedroom penthouses and 2 & 3 bedroom townhouses, this development will features 161 meticulously crafted luxury residences. Not only this, the access of 600 meters of pristine beachfront adds a cherry on top.
Clearly, big players are pivoting to RAK property to diversify their UAE portfolios.
Local Developers Lead The Charge
Beyond big-name developers from Dubai and Abu Dhabi entering RAK, we must acknowledge the pivotal role of local developers in pioneering Ras Al Khaimah’s real estate landscape over the past decade.
RAK Properties stands tall as the most established master developer in RAK, with over 14 years of experience. Their expansive portfolio spans luxury residential communities like Flamingo Villas , hotel resorts like DoubleTree by Hilton Resort & Spa Marjan Island, and mixed-use lifestyle destinations like Mina Al Arab.
Last year financial results revealed exceptional growth:
- Q3 2023 revenue spiked 137% to AED 685 million.
- Net profits rose 282% to AED 105 million.
- Sales hit AED 1.5 billion in the first nine months of 2023, a 316% yearly increase.
With more groundbreaking additions like Nasim Townhouses and Cape Hayat apartments unveiled this year, RAK Properties continues elevating the emirate’s community living standards and economic strength. Their expanding hospitality portfolio also makes Mina Al Arab an increasingly attractive destination for tourists and businesses.
Marjan serves as the Ras Al Khaimah government’s master developer arm, tasked with conceptualizing and executing property developments that support economic diversification into tourism and real estate.
Marjan directly created flagship destinations like Al Hamra Village and the four man-made islands constituting Al Marjan Island, which catalyzed waves of private investments.
2022 saw tremendous homebuyer interest in Marjan’s Al Marjan Island properties, with multiple sellouts. Upcoming launches now include:
- A business district called RAK Central overlooks Al Hamra Golf Course.
- Partnerships with hospitality brands like JW Marriott and Waldorf Astoria for luxury residences
- Additional residential phases like The Beach House On Al Marjan Island
These high-profile ventures as crucial for “creating unparalleled living experiences that will boost investment opportunities for homeowners and tourists.”
Clearly, Marjan and RAK Properties serve pivotal roles as lynchpins anchoring the broader boom in RAK real estate through their development excellence. Buying into their newest projects lets investors participate in potentially rewarding opportunities.
Prime Property Hotspots To Target
While most of RAK allows foreign freehold ownership, certain areas specifically target investors and end-users with dedicated master plans. These hotspots should be on your radar when buying property in RAK:
Al Marjan Island: Four man-made islands created by land reclamation make up the premier destination for freehold luxury RAK real estate.
- Shaped like coral seashells, the archipelago offers over 7.8 km of pristine beaches.
- Features luxury hotels like Rixos Bab Al Bahr and Marjan Island Resort & Spa.
- Upcoming additions like Oceano By Luxe , Marjan The Beach House and Wynn Al Marjan Island
- Residential options range from studios to spacious 4-bed penthouses and villas.
- Outdoor lifestyles with water parks, yacht clubs, and water sports like kayaking and paddleboarding
Al Hamra Village: century-old natural beauty meets modern community living in this neighbourhood overlooking the Arabian Gulf.
- Master development by Al Hamra Group
- Features the only beachfront golf course in the UAE, spanning 7359 yards along mangrove forests.
- Majestic views of the Hajar Mountains
- A wide range of residential options, from golf villas to luxury apartments
- The PIER waterfront dining and retail strip is Ras Al Khaimah’s premier lifestyle attraction.
Given the rising activity here, consultancy firm Colliers has singled out Al Hamra Village as their number one recommended area for RAK apartment sales and rentals alike.
Mina Al Arab, a.k.a. Hayat Island, is billed as the future of RAK thanks to this mega-4.3-square-kilometre sustainable smart city with a marina that can dock super yachts.
- Located across from Al Marjan Island, it is reachable via a scenic bridge.
- Dubbed RAK’s Dubai Harbour with the iconic UAE architecture
- Phase 1 sold out rapidly, indicating massive investor interest.
- Family-friendly community vibes with amenities like fitness centers, retail plazas, and parks
Developer Innovation Attracts Investors
Let’s examine some pioneering development concepts that make RAK’s real estate scene so vibrant:
The Luxe Developers exemplify luxury living through attention-grabbing architecture and amenities associated with 5-star resorts. Their recently opened flagship twin tower project, ‘Oceano’ on Al Marjan Island (valued at over $408 million), seems straight out of Dubai’s luxury playbook by including:
- Infinity pools spanning across buildings
- State-of-the-art health club
- Yoga room
- Resident business center
- Children’s play areas
- Cigar lounge
- Themed fine dining venues
- Private yacht jetty access
Frank Porter brings a mid-market residential focus seeking to deliver “exceptional community living” for end-users through international-standard facilities.
Their upcoming Al Marjan Island project, ‘The Beach House‘, containing 88 apartments on a private beach, champions sustainable features like:
- Solar panel-fitted homes supporting the 2050 net-zero vision
- Energy-efficient glass facades
- Charging stations for electric vehicles are in every unit.
- Rooftop urban farming benefits residents.
Plus, amenities like yoga lawns, sports courts, a kid’s zone, a swimming pool with resistance jets, and more foster healthy lifestyles.
RAK Properties caters to the value luxury segment through its ‘branded residences’ model. This niche promises higher perceived prestige and service quality via affiliation with globally renowned hospitality brands.
Government Support Accelerates Growth
The RAK leadership recognized their emirate’s vast potential for tourism and real estate years ago. Numerous government initiatives and investments aim to accelerate economic diversification, drawing investors.
Free economic zones like RAKEZ and RAK International Corporate Center, coupled with business-friendly policies, play a huge role in attracting companies here. CEO Ramy Jallad says
“The significant growth in holding company registrations within RAKEZ reflects the confidence and strategic interest of international investors in the country. As one of the safest and most appealing investment destinations in the region, the UAE boasts a wealth of opportunities, both existing and on the horizon. Ras Al Khaimah stands out by offering an array of prospects that global investors can capitalise on, and leveraging the emirate’s strategic position and business-friendly environment.”
The government is also spending billions on tourism infrastructure over the next five years.
- Expanding the international airport to serve 6 million visitors
- Global luxury and adventure hospitality brands are bringing 5,000 additional hotel keys.
- Developing Jebel Jais into the Middle East’s leading adventure tourism destination with the upcoming Bear Grylls Explorers resort
- Multi-billion-dollar mega-recreational attractions like Wynn Casino, vast water parks, nature parks, and more fuel investor interest.
Additionally, RAK leadership directly enables real estate growth across the emirate through its asset management arm, Marjan.
By conceptualizing and building sought-after destinations like Al Marjan Island, Al Hamra Village, Ras Al Khaimah Creek, and now the RAK Central business district, Marjan creates thriving communities that organically attract further public and private investments.
RAK Tourism Development Authority CEO Raki Phillips confirms that 2022 visitor numbers and hotel occupancy hit their highest ever thanks to targeted promotional efforts and new resort additions.
With the pipeline of tourism projects and incentives like easing visa entry from newer markets like China and Russia, the government aims to attract 3 million visitors by 2025. This obviously brings massive opportunities for property development and ancillary services.
Prime Time To Invest In Ras Al Khaimah
We’ve covered multiple statistics and insights explaining why RAK real estate is heating up. Vast investments, surging demand, and exponential growth paint a decisively positive picture.
Now seems to be the prime time to invest in RAK property before future developments and prices rise. Let’s recap the key signals indicating that:
Major Players Rush To Stake Land Plots
Big names like EMAAR, Aldar, and Dubai Holding queuing for land acquisitions show strong confidence in RAK’s tourism and property potential. These industry bellwethers expect considerable development and value creation forthcoming.
Launch Phases Sell Out Rapidly
From Aldar’s project instantly selling out to RAK Properties planning a 50% sales volume rise this year, demand is clearly outstripping supply. Such voracious appetite from investors and end-users alike signifies upside. Get in while you still can!
Bullish Price Growth Predictions
From prices recently rising 6–10% annually to experts projecting 20–30% capital gains over the next five years, everything signals property values will keep increasing in RAK. Buying now means your asset keeps appreciating until you realize substantial gains later.
Proactive Government Development Plans
RAK leadership is actively building tourism facilities, attractions, and communities to serve investors and visitors alike. Such strong backing and facilitation incentivize private real estate projects while enhancing infrastructure.
Competitive Project Launches Lined Up
Top UAE developers like Emaar, all set to launch new luxury residences in RAK, show major activity upcoming. Buyers win through better amenities, designs, and service quality as competition rises amongst branded offerings.
Still not convinced? Hear out what the experts and developers say:
Siddharta Banerji, Managing Director and Co-owner of The Luxe Developers, said: “Such has been the interest in Oceano, we have been busy identifying and developing the latest addition to our portfolio, which we will launch in 2024.”
“We believe that the UAE has a discerning clientele with a taste for uncompromising luxury, and Ras Al Khaimah provides the perfect canvas for this vision,” said Bhupender ‘Bruce’ Patel, co-founder & co-CEO of WOW Resorts.
Lastly, high-profile personality Manuj Garg, Founder of Top Luxury Property, suggests:
“RAK’s property price-to-income ratio is around 2x lower than Dubai. Meaning buyers get better value for money while rental yields run far higher. Investors should absolutely take advantage already since land plots are running out.”
Wrapping It Up
In short, all signs definitively point out that opportunities abound currently in RAK real estate, but the window to maximize gains is tight.
From market activity to expert opinions, we’ve presented overwhelming evidence that buying property now lets you capitalize on an upcoming boom before future development and price hikes.
Whether you seek capital appreciation from emerging prime districts or leverage high rental yields for passive income, RAK delivers clear competitive advantages over other UAE cities. Strike the iron while hot by Investing In Ras Al Khaimah Real Estate projects already aligned with your objectives before accessible inventory gets snatched up!
We hope this guide covers everything you need to know to make a well-informed decision. Let us know if any other aspects need elaboration. We’re happy to discuss specifics, like recommended projects for different investment profiles. Good luck, and here’s raising a toast to profitable RAK property pursuits!
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