Property Boom In UAE’s Ras Al Khaimah

Sitting on the northernmost part of the United Arab Emirates is Ras Al Khaimah. Boasting a rich history spanning 7,000 years, this picturesque emirate remains a significant economic growth driver for the UAE, with the Emirate's burgeoning real estate sector leading the way.

According to Bayut’s RAK Annual Market Report for 2023, the RAK real estate market is "booming." Rental prices for apartments in popular neighbourhoods have surged by 10.5% year-on-year. Meanwhile, villas have experienced a 9.37% YoY increase in rental costs.

The upscale Al Hamra Village has emerged as a preferred choice for renters. It posted an average rent increase of up to 11% for flats. The average rental cost hovers around AED 37,000 for a one-bed unit. On the other hand, a two-bed unit is priced at AED 53,000.

In terms of sales, the figures also show an upward trend. Specifically, apartment sales prices have increased by 18.5% YoY. Moreover, the sales prices of villas have increased by 3.55% compared to the previous year.

Furthermore, the annual report indicates that Al Hamra Village stood out as the preferred location for purchasing apartments in the emirate. The average price per square foot increased from AED 587 in 2022 to AED 633 in 2023. On average, one-bedroom apartments were priced at AED 533,000. Two-bedroom and three-bedroom units were listed at AED 848,000 and AED 1.58 million, respectively.

Properties on Al Marjan Island, Mina Al Arab, Al Nakheel and Al Dhait are also among the most in demand.

What makes Ras Al Khaimah a burgeoning real estate haven? Besides its relatively lower prices, it boasts a prime location and a robust economy.

Situated at the crossroads of Europe, Asia and Africa, Ras Al Khaimah is within a four-hour flight of one-third of the global population. This strategic positioning has established the emirate as an optimal hub for businesses seeking access to the UAE, the Middle East and surrounding regions.

Aligned with the national agenda, the Emirate is dedicated to economic diversification and reducing dependence on oil. Notably, no single sector in the emirate contributes more than 30% to the overall GDP. According to S&P, the emirate’s GDP growth is projected to average 2.7% percent annually from 2022 to 2025.

In February, Range Ras Al Khaimah, a prominent real estate developer in the UAE, entered into a partnership with Marjan, a leading developer of freehold properties in the emirate, to undertake three new developments.

“We see great potential in Ras Al Khaimah. It has all the attributes we like to see – a robust and diversified economy,” said Mohammed Asaria, managing director and board member at Range Developments.

Contributing to Ras Al Khaimah’s economic vitality is the facilitation of business operations. The Ras Al Khaimah Economic Zone comprises five zones accommodating over 21,000 companies from 100 countries and 50 industries. These zones offer 100 percent tax exemption and foreign ownership, with convenient access to both Ras Al Khaimah International Airport and the seaport.