Ras Al Khaimah, UAE – 13 February 2024: Bayut, the UAE’s leading property portal, has released their latest Ras Al Khaimah Market Report, with detailed insights on search trends in the northernmost emirate in 2023. In the past two years, the Ras Al Khaimah real estate market has seen a notable increase in activity, which is expected to continue into 2024. The same outlook is also reflected in Bayut’s Ras Al Khaimah 2023 market report. An analysis of search trends on Bayut has shown that demand for both villas and flats grew steadily, driving property prices upwards in most of the highly searched areas of the emirate.
The implementation of zero tax and the option of full foreign ownership have emerged as key catalysts, successfully attracting global investors to the emirate. Several property projects, including Cape Hayat on Hayat Island (Mina Al Arab) and the complete inventory on Al Marjan Island in RAK have been reported as sold out, underscoring the growing interest and confidence in the real estate sector.
Additionally, RAK’s emphasis on mega hotel projects has played a significant role in fuelling the freehold residential boom, creating a dynamic landscape for both investors and developers. These developments collectively highlight Ras Al Khaimah’s position as a thriving hub for real estate investment, characterised by strong demand, successful projects and a favourable environment for international buyers.
Based on the search interest for apartments for sale in Ras Al Khaimah on Bayut, Al Hamra Village has been the number one choice for potential buyers:
● In Al Hamra Village, the average price-per-square-foot for flats has surged by 7.84%.
● Al Marjan Island has been another locality preferred by homebuyers interested in flats in the emirate. The average price-per-square-foot in the area has risen by 4.88% in 2023.
● Mina Al Arab, has also been a popular option, despite a significant increase of 18.5% in average sale prices.
● Areas such as Yasmin Village and Al Seer have also garnered investor interest in 2023.
Al Hamra Village and Mina Al Arab have continued to be the preferred options for investors seeking to acquire villas in RAK, underscoring the substantial market interest in the emirate’s leading waterfront developments. Rental costs for villas in these districts have increased by up to 7%. Villas for sale in Al Hamra Village have reported a 3.55% increase in price, whereas the houses in Mina Al Arab became more affordable by 2.56%.
Apartments in Yasmin Village have recorded the highest ROI of 11.8%. Al Seer and Al Hamra Village have followed with impressive projected rental yields of 9.44% and 6.95%, respectively.
As for villa communities, Al Hamra Village’s ROI has stood at 5.87% during 2023, whereas the ROI for Mina Al Arab villas averaged at 4.43%.
Looking at the past year, rental apartments in Al Hamra Village were the preferred choice for renters.
● An increase of up to 10.5% in asking rent has been recorded for flats in Al Hamra Village, Al Marjan Island and Mina Al Arab.
● During the year, areas such as Al Nakheel and Al Seer have also been considered by people searching for rental apartments. There was no significant change in average rents in these areas.
A scrutiny of the collated data for rental villas in RAK once again brings Al Hamra Village to the forefront. Villas in Al Hamra Village were in demand across the year. Unlike Al Hamra Village which has seen an increase in average rent, Al Dhait, another popular area, has recorded a slight drop in average asking rent.
Commenting on the report’s findings, Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA said:
“During 2023, we witnessed a dynamic market in Ras Al Khaimah that continued to grow at an exciting rate throughout the course of the year. The buzz of opportunity around RAK real estate is reverberating far and wide, with the potential for sustainable growth attracting regional and global investors who have recognised the emirate as a potential real estate hotspot.
Just in the last month, we’ve seen major announcements in both the residential and hospitality space in the emirate. These and the many other exciting projects across RAK’s real estate market are due, in no small part, to the government’s proactive measures, strategic initiatives, and vision for sustainable growth. These factors combine to ensure the emirate has sustained its position as an investment destination of choice in the region.”