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REM TIMES delves into the factors shaping Ras Al Khaimah as a real estate hotspot
March 05, 2024 | Deepa Natarajan Lobo | UAE | Developers
In the last few years, the UAE’s northernmost emirate Ras Al Khaimah (RAK) has been emerging as a realty hotspot with premium properties which are increasingly being sought-after by investors across the globe. There could be several reasons for this property boom in the region according to industry experts. From the completion of off-plan projects and developments to the availability of modern homes in various sizes, RAK has also been in the news for its upcoming state-of-the-art gaming resort which will act as a major catalyst adding all the more value to the emirate’s real estate, believe realtors and consultants.
With the UAE’s first casino expected to open at Wynn Resort in RAK in 2027, the emirate has been creating international headlines. Faisal Durrani, Head of Research MENA, Knight Frank, the global real estate consultancy firm, points out that since 2004, RAK has embarked on an ambitious plan to transform itself into a world-class tourism destination with a plethora of luxury hotels, golf courses and extreme sports attractions, positioning itself as an alternative getaway to Dubai. “In its effort to continue upping the ante, the RAK government established the Ras Al Khaimah Department of Entertainment and Gaming Regulation – a precursor to the announcement of the development of the Middle East’s first casino. Over the course of the gaming industry announcement, we have been seeing increased investment activities and market sentiment from reputable developers that were not previously present in Ras Al Khaimah,” he observes.
According to real estate agency and Metropolitan Group’s flagship property company Metropolitan Premium Properties (MPP) which is all set to open its office in the region, real estate prices in RAK are touted to increase by 25% this year following a 50% jump in 2023. Says Maxim Novikov, Head of RAK Branch at Metropolitan Premium Properties, “The emirate is attracting increasing interest from investors across the globe, particularly residents from the Middle East seeking holiday homes. For investors looking to purchase property in RAK, the time to act is now as prices are expected to surge an additional 50% upon the resort’s opening, presenting a unique opportunity to acquire beachfront properties before the peak.” He further adds, “The introduction of the Wynn Resort is only expected to boost the appeal of the emirate, which welcomed over 1.2 million tourists in 2023 with 4,700 keys planned in the coming years.”
“The emirate is attracting increasing interest from investors across the globe, particularly residents from the Middle East seeking holiday homes. For investors looking to purchase property in RAK, the time to act is now as prices are expected to surge an additional 50% upon the resort’s opening, presenting a unique opportunity to acquire beachfront properties before the peak.”
Maxim Novikov, Head of RAK Branch at Metropolitan Premium Properties
With Al Hamra Village, Mina Al Arab, and Al Marjan Island being the top choices for purchasing or renting homes, RAK has also been seeing a surge of ultra-high-net-worth individuals (UHNWI) seeking investment opportunities beyond Dubai. A recent proof of this is Oceano, a premier residential development by the UAE-based real estate development firm The Luxe Developers situated on the Al Marjan Island, which has been catching the fancy of several UHNWIs.
According to Manav Bhatia, Marketing Director of The Luxe Developers, “RAK's real estate market is growing and becoming more attractive to investors due to the promise of substantial long-term returns. The demand for luxury properties is rising, making the market even more lucrative.” When asked if RAK will be the next Dubai, Bhatia shares, “RAK has its own unique identity and is not trying to position itself as the next Dubai. We have, however, seen many ultra-high net worth individuals (UHNWI), who typically gravitated towards Dubai, now looking at Ras Al Khaimah as an alternative luxury investment.”
