How Ras Al Khaimah is transforming itself into an attractive real estate investment destination

04/10/2017 13:57 AST

Reasonable price, accessibility, luxurious amenities and other incentives are driving the real estate market in Ras Al Khaimah. Investors and real estate businesses are heading north, quick to sense an opportunity.

Adam Price, managing director of Select Property, lays it out well when he says, “Affordability is the key driving factor for real estate growth in RAK; property is fantastic value for money from both a rental and buying perspective when compared to Dubai and other neighbouring emirates.”

Located just 45 minutes from the world’s busiest airport in Dubai, and with the emirate’s own airport set for more expansion in the coming years, the accessibility to foreign travellers is of huge appeal, adds Price.

Expectedly, it is not only the international tourists and investors, but also those from other parts of the UAE that are driving the real estate market in RAK for its value-for-money luxury and leisure. According to Mat Green, head of research and consulting at CBRE Middle East, “It has also emerged as a tangible second home and holiday home market.”

Real estate in RAK has also received a boost from the way developers are aggressively wooing clients with extended payment plans, small down payments and rent-to-own option. As Barry Ebrahimy, head of commercial at Al Hamra Real Estate Development, puts it, “Families can book a quality home with 5 per cent down payment and pay for the property over five years while living in their homes.

“We are also offering a rent-to-own option for these customers who wish to live in the property, while knowing that they can convert the rental payments they have made towards their property purchase.”

Another factor that drives real estate business in RAK is the determined steps that it has taken to position its business to a wide variety of specific needs of the visitors.

Haitham Mattar, CEO of Ras Al Khaimah Tourism Development Authority (RAKTDA), points to just that saying, “Whether you are a beach-seeker, active adventurer or wellness seeker, the emirate will offer you diverse and exciting new products coming online later this year — specifically in our adventure tourism playground that is Jebel Jais, the highest peak in the UAE — we are optimistic of registering continued growth from all key markets for the remainder of the year and beyond, providing added reason for further hospitality investment.”

Now is the time to invest

RAK boasts a business-friendly environment and cost competitiveness, which assures the investors a very healthy return on investment. Cost of land is comparatively lower than other emirates, which is a big boon to real estate business.

Most industry experts are very positive in terms of returns for the investors. John Stevens, managing director of Asteco, highlights that Al Hamra reported yields of 7-8 per cent per year on town houses and villas and 8-9 per cent on smaller apartments. Price predicts an 8-10 per cent return on beachfront property like Pacific. Ebrahimy, for his part, puts the returns in the range of 6-10 per cent depending on the size and purchase price of the property.

What industry watchers are keenly keeping a tab on is the handover time, the profile of the developers, the actual finalisation of sale of the residential, commercial and office complex, and the occupancy of the hotel rooms to chart out the trajectory of investment safety and returns.

They find that the development in the emirate is taking place at brisk pace and yet adequately phased to give good returns. “The performance of the real estate sector in RAK has been steady and consistent,” says Price, adding that there was an 82 per cent increase in sale in the second quarter over the first quarter.

Click here for more

Gulf News

RAK Properties’ AGM approves cash dividend of 6% for 2017


RAK Properties said its board approved increasing the cash dividend to 6 per cent of the nominal value of share (6 fils per share), up from the recently recommended 5 per cent.

“The year 2

Gulf News

RAK Properties posts 10% jump in net profit for 2017


RAK Properties reported on Thursday a 10 per cent increase in its net profit for 2017, reaching Dh192 million from Dh175 million in 2016. Revenues of the company for 2017 were at Dh313 million. Net o

Gulf News

RAK Properties to complete Northbay Residence tower by 2020


Comprising one-, two-, and three-bedroom apartments, as well as duplex units, the tower will be surrounded by amenities such as restaurants, shopping options, parks, walkways, and gardens.

Construction Week Online

Ticker Price Volume
RAKPROP Sector Market
Dividend Yield (%)
Relative Strength
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Price Vs…
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg
Ticker Price Change
ERES 10.70 0.10 (0.94%)
BRES 35.89 0.58 (1.64%)
MABANEE 700.00 7.00 (1.01%)
UDCD 13.90 0.00 (0.00%)
REAM 1,572.00 0.00 (0.00%)
Bank Nizwa participates in Malaysia industry event


Bank Nizwa, represented by two of its Board Members, Sami Al Dhugishi and Ishaq Al Maouli along with Chief Executive Officer, Khalid Al Kayed, participated in the 2nd Islamic Financial Services Board

Times of Oman

Emirates NBD stands chance to renegotiate Denizbank acquisition


The sharp decline of the Turkish lira in recent weeks has triggered speculation in banking circles that Emirates NBD stands a chance to renegotiate its deal to acquire Denizbank as the valuation has

Gulf News

Eshraq reports best half-year since 2014


Abu Dhabi-listed Eshraq Properties reported a first-half net profit of Dh14.8 million, compared to a loss of Dh0.32 million in the first half of 2017. The property firm said in a press statement that

Gulf News

Damac and RHG to launch Radisson Hotel


Damac Properties has signed a landmark agreement with Radisson Hotel Group (RHG) to develop and launch the ‘Radisson Hotel, Dubai Damac Hills’, its first, newly launched Radisson-branded property wor

The Gulf Today

Adnoc Distribution net profit up 18pc in H1


Abu Dhabi National Oil Company for Distribution (Adnoc Distribution) has reported that net profit for the six months ended June 30, 2018, increased by 18 per cent to Dh1.124 billion ($306 million) co

Trade Arabia