Known for its natural beauty, wealthy lifestyle, and growing economy, Ras Al Khaimah , one of the seven emirates of the UAE, has been gaining traction in the realty space. This blog shows price trends and insights on the RAK Property Market , detailing what makes this emirate a hidden gem. We will also discuss the upcoming DAMAC Shoreline project, a significant development touted to make waves in the local real estate scene.
The Allure of Ras Al Khaimah
The property market in RAK is outstanding for many reasons:
- Natural Landscapes: Mountains, deserts, and beaches are offered in unmatched natural landscapes by the emirate, along with a more laid back lifestyle than Dubai or Abu Dhabi.
- Relative affordability: RAK’s standard of living and real estate costs are very low compared to Dubai, making it an excellent destination for investment and relocation.
- Infrastructure: Major steps have been taken towards infrastructure with improved road networks, healthcare facilities, and educational institutions.
- Government Support: The focus on tourism, industrial growth, and free zones has also increased the emirate’s appeal.
Surging Demand Drives Price Growth- Outlook
Rental and sale prices in RAK have increased throughout 2023 due to strong market demand. RAK Market Report, apartment sale prices increased 18.5% year-over-year in some areas. Rental costs have also risen, with rates for apartments climbing 7-11% across popular neighborhoods like Al Hamra Village and the newly launched Damac Shoreline .
Villa markets experienced a similar upside. Sales prices grew 3.55% on average, and Hamra Village rents jumped 9.37%. The overall increases indicate a substantial rise in demand relative to available stock and point to growing interest in RAK as a second home or investment property location.
Market analysts project these price appreciation trends will spill into 2024. Cavendish Maxwell RAK CEO Karim Sadek stated he expects “further mid-single digit percentage price increases across all major RAK communities.”
Meanwhile, Knight Frank forecasts rental yields could reach 7-8% in 2024, further stimulating investment.
Price Trends in Ras Al Khaimah
The RAK real estate sector has developed progressively over the last two years. Although this city may be less in demand than Dubai or Abu Dhabi, its competitive prices would give it a broader base of appeal among expatriates, retirees, and investors looking to shift from typical fast-moving cities.
Residential Property Prices
- Apartments: Waterfront properties are more common at the higher end of the scale, with particular premium locations like Al Hamra Village and Mina Al Arab. However, Square foot prices for this category of housing units range between AED 450 and AED 650, depending on the location and other factors reflecting added amenities and services.
- Villas: It would be appropriate to argue that the price dramatically fluctuates in size, location, and even the community’s amenities. On average, in 2023, a three-bedroom villa cost around AED 1.5 million in Al Hamra Village, even though comparable units within Mina Al Arab cost an average of AED 1.7 million to AED 2.3 million during the same time.
- Townhouses: Ever-growing townhouses usually within the pockets of AED 800,000 and AED 1.2 million, making them pocket-friendly for a family looking for space.
Commercial Property Prices
RAK’s commercial property sector is gradually improving due to its free and industrial zones.
- Office Spaces: The average square foot selling price, depending on the location, ranges from AED 350 to AED 500.
- Retail: Particularly, retail centers located in tourist areas have a price tag of average rent of AED 150 to AED 250 per square foot annually.
Rental Market Trends
RAK’s rental market is also attractive, with rental yields often higher than in other emirates:
- A two-bedroom apartment in Al Hamra Village could rent from AED 50,000 to AED 70,000 annually.
- A three-bedroom villa could fetch AED 100,000 to AED 140,000 annually.
These rental yields are appealing to investors looking for steady income streams.
Price Comparison of Key Property Types in RAK
| Property Type | Location | Average Price per Sq. Ft. (AED) | Average Total Price (AED) |
| Apartment | Al Hamra Village | 500 – 650 | 400,000 – 1,200,000 |
| Villa | Mina Al Arab | 650 – 850 | 1,700,000 – 2,300,000 |
| Townhouse | Al Hamra Village | 400 – 550 | 800,000 – 1,200,000 |
| Office Space | Ras Al Khaimah City | 350 – 500 | Varies by size and location |
| Retail Space | Tourist Areas | N/A | 150 – 250 per sq. Ft. (Rent) |
DAMAC Shoreline: Changing the Game
Damac Shoreline is not only a new residential project but also your beachfront sanctuary in Al Marjan Island, Ras Al Khaimah. These luxury 1, 2, and 3 Bedroom Apartments and 4—and 5-Bedroom Townhouses come with private beach access and are a couple of minutes from the region’s exclusive Wynn Resort. The beautiful interiors of these homes focus on presenting a peaceful, modern, and elegant living experience.
- DAMAC Properties: Luxury and quality are in only one name. DAMAC has invested in RAK with this new development right on the beachfront.
- Residential and Commercial Properties: DAMAC Shoreline will offer a mix of residential and commercial properties. These include luxuriously appointed apartments with views over the Arabian Gulf and two-story townhouses.
- Pricing: The prices of DAMAC Shoreline apartments will start from AED 1.8 million, making the project very competitive in the luxury segment with a payment plan of 70/30
- Rental yields: The project also claims high rentals, making it irresistible to investors.
Investment Potential in RAK
The Ras Al Khaimah Real Estate Market offers immense investment potential. Its geographical location, developing economy, and proactive government policies make this Emirate an attractive destination for property investors.
- Long-term upside: With RAK forging ahead on essential infrastructure development, building a diversified business base, and aspiring to attract more tourists, the trend in property values is likely to rise.
- High Rental Returns: Already high rental yields, combined with the introduction of projects such as DAMAC Shoreline, are making RAK an up-and-coming investment destination.
Conclusion
The Ras Al Khaimah real estate market reconciles affordability, luxury, and growth. Attractive prices, competitive rentals, and initiating projects like DAMAC Shoreline have put this emirate on the fast track to being the most favored destination for property investors and homebuyers. Be it a beachfront apartment, a family villa, or a commercial space, RAK has it.
