Ras Al Khaimah emerges as the UAE's next investment hub with record property activity

08/12/2025 06:07 AST

Ras Al Khaimah is rapidly evolving from a quiet northern emirate into one of the UAE's most dynamic investment hotspots. Fuelled by major infrastructure spending, strategic government mergers, and a profound influx of luxury-branded residences, the real estate sector has logged growth figures that indicate a fundamental maturation of the market.

Market analytics highlight Ras Al Khaimah's rapid ascent, with the ValuStrat Price Index (VPI) recording a 14.9% annual increase in freehold residential capital values, reaching 122.2 points in Q3 2025. During the quarter, apartments drove the momentum, accelerating their growth to 15.5% year-on-year and 4.9% quarter-on-quarter, while villa growth decelerated slightly to 13.8% annually. This surge in apartment values was most pronounced in key waterfront communities, with Al Marjan Island witnessing the highest increase at 16.8% annually and 6.3% over the quarter.

Investment confidence is overwhelmingly directed at new developments: off-plan registrations dominated 84% of total sales during the first nine months of 2025, generating over Dh8.2 billion in value across more than 4,100 units. The secondary market saw a more measured pace, with 776 ready homes sold, mostly apartments (76% of transactions), totalling Dh909 million. The overall market offers attractive returns, with freehold residential properties generating an average gross rental yield of 5.4%.

The real estate boom is being supported by strong macroeconomic fundamentals. S&P Global forecasts 4.2% annual GDP growth for RAK through 2027, supported by its stable sovereign credit rating. Foreign Direct Investment is gaining traction, with Dh700 million attracted across six key projects in the first half of the year. The RAK Economic Zone (RAKEZ) added 8,506 new companies in H1 2025, a 43% year-on-year increase.

On the governmental side, a strategic merger between master developer Marjan and RAK Hospitality Holding (RAKHH) has created a unified entity to accelerate the RAK Vision 2030. This vision aims to welcome 3.5 million annual visitors and deliver nearly 20,000 hotel keys.

Sheikh Ahmed bin Saud bin Saqr Al Qasimi, Chairman of Marjan, said the merger "will reinforce our position as a beacon of opportunity and innovation. This merger builds upon solid foundations for a new chapter of advancement and success, enabling us to deliver iconic destinations that are deeply rooted in Ras Al Khaimah's unique identity."

The commitment to tourism is evident, with the sector contributing approximately 5% to RAK's GDP in H1 2025. Hotel visitor arrivals, which reached 653.7K, and the robust pipeline of 29 new hotels by 2030, further solidify RAK's appeal to global investors

"Ras Al Khaimah continues to provide a compelling story to investors, reflecting a market in rapid transformation," said Matthew Green, Head of Research at CBRE Middle East. "The surge in residential sales, the sustained growth of the hospitality sector, and the implementation of strategic initiatives which are driving the development of new, high-end offerings, are all indicative of a market going through a positive transformation."

Further highlighting this maturity is the shift in purchasing patterns. Data shows that mortgage transactions now represent the largest share of real estate activity, indicating a market moving firmly toward finance-backed ownership and a growing presence of end-users seeking long-term stability and quality of life.

"A nearly ninefold increase in real estate activity (real estate activity in Q1 2025 compared to Q1 2017) reflects a market that has moved far beyond speculation," said Andrei Charapenak, CEO of Major Developments. "Buyers and investors today are looking for stability, infrastructure, and long-term value, and they're finding that in Ras Al Khaimah."

Luxury brands propel prices
The most visible sign of RAK's ascent is the aggressive entry of global luxury and hospitality brands into the residential space. This has directly impacted property valuations. Metropolitan Premium Properties data shows prices have risen by 10% to 15% year-to-date, with villa and apartment sales averaging 15% to 20% higher than in the third quarter of 2024. Certain premium, off-plan, and branded residences have seen price growth of 30% to 50%.

"With major developers bringing branded residences such as Anantara Residences and ENTA MINA by RAK Properties, Fairmont Residences by Ardee Developments and Soto Grande by Ellington, coupled with infrastructure upgrades and iconic projects like the Wynn resort, the Emirate is attracting serious interest from global investors," said Maxim Novikov, Head of the RAK branch at Metropolitan Premium Properties. "We see this as just the beginning of RAK's real estate growth story."

The trend of branded residences is not a fleeting one. Research by CBRE Middle East suggests that branded residences are expected to comprise 25% of the upcoming freehold supply to be delivered by 2030, with approximately 4,800 units planned. Luxury names like Ritz-Carlton and Armani are already part of this market expansion.

Off-plan dominance and new masterplans
Current demand is concentrated on established hubs like Al Marjan Island, Mina, and Al Hamra Village, alongside the newly launched RAK Central. Off-plan properties currently command the market, accounting for a massive 95% of transactions, showcasing strong investor confidence in future developments. Re-sale activity in the off-plan segment is also rising, another indicator of conviction among early buyers.

The city's urban fabric is being expanded through ambitious new master communities, including the 85-million-square-foot Marjan Beach and Maireed Island.

Further reinforcing RAK's status as a luxury hub are upcoming launches, including Palazzo Tissoli, Mondrian Residences, Hard Rock Hotel, Four Seasons, and Armani Villas.

Gulfnews