Ras Al Khaimah is rapidly emerging as a top choice for real estate investments, as investors increasingly seek alternative destinations that offer luxury and high returns amid soaring property prices in Dubai.
Soaring short-term rentals for beachfront residential properties and luxury hospitality projects in Ras Al Khaimah (RAK) amidst a surge in tourist arrivals is triggering a new wave of demand spike for real estate assets in the emirate, developers said.
Multi-billion infrastructure investments for road expansions, airport enhancements and smart city initiatives to enhance the emirate’s accessibility to Dubai and other cities are also rapidly positioning RAK as a powerhouse in the UAE’s luxury real estate sector, they said.
The much-anticipated Wynn Resort – billed as the first casino in the UAE – is also acting as a game-changer for the emirate’s premier real estate segment, drawing in high-net-worth investors and luxury buyers.
“Ras Al Khaimah is fast emerging as a top choice [for real estate investments] as investors are increasingly looking for alternative destinations that offer luxury and high returns amidst soaring property prices in Dubai,” Vivek Anand Oberoi, Co-Founder and Managing Director, BNW Developments, a leading real estate company in Ras Al Khaimah, told Arabian Business.
“RAK’s infrastructure investments are making it more accessible and desirable for investors, creating profitable opportunities for them,” he said.
Senior executives at other real estate firms said with the emirate attracting millions of tourists, the demand for short-term rental properties and luxury hospitality projects is expected to soar further going forward, making it a highly profitable investment destination for global investors.
Enhanced connectivity, advanced infra to play key roles in attracting global investors
Industry players said Ras Al Khaimah’s seamless connectivity to Dubai – an estimated 45-minute drive – adds to the emirate’s appeal for investments in the real estate sector – both residential and hospitality.
Major projects such as road expansions, airport enhancements, and smart city initiatives are further improving RAK’s accessibility, ensuring that investors and residents enjoy a modern, well-connected urban ecosystem, they said.
Developers said the demand for residential and hospitality-focused real estate in the emirate is witnessing a steady rise of late, citing that in the first half of 2024 alone, a landmark transaction on Al Marjan Island worth AED 640 million highlighted the emirate’s strong investment momentum.
BNW Developments said it has already launched two projects on Al Marjan Island, Aqua Arc and Pelagia, and investors are eagerly securing their investments.
Other developers are also either in the process or planning to launch new projects, especially in the high-end segment.
Oberoi said developments like Sofitel Al Hamra Beach Resort, Anantara Mina Al Arab Resort and Wynn Resort have transformed Ras Al Khaimah into a world-class luxury destination, attracting global investors and high-net-worth individuals.
“These globally recognised brands bring credibility, ensuring premium amenities, world-class property management, and long-term value for investors.
“With an influx of luxury residences and waterfront developments, RAK is redefining its real estate landscape and positioning itself as a viable competitor to Dubai and Abu Dhabi,” the BNW Developments’ top executive said.
Ras Al Khaimah real estate growth
Sector experts said Ras Al Khaimah’s real estate market is set for sustained growth over the next five years, fuelled by high-profile developments and increasing foreign investment.
Compared to Dubai, where property prices continue to surge, RAK offers luxury living at nearly 40 to 45 per cent lower prices, making it a strategic choice for long-term investors, they said.
Additionally, rental yields in Ras Al Khaimah remain strong, averaging around the 8 per cent mark, further reinforcing its status as a high-potential investment market, they said, adding that key locations such as Al Marjan Island are seeing strong demand growth, leading to a 15 per cent year-on-year price increase.
BNW Developments’ Oberoi said various pro-industry and infrastructure initiatives by the government are also strengthening the investment climate.
“RAK’s pro-investor policies have played a pivotal role in attracting global buyers. Besides, the introduction of long-term residency programmes like the golden visa and 100 per cent foreign ownership laws and tax benefits has created a secure and seamless investment environment,” he said.
Additionally, the government is actively fostering public-private partnerships to accelerate infrastructure and real estate development, reinforcing the emirate’s economic potential and long-term growth prospects, Oberoi said.
“RAK is set to become a dominant force in the UAE’s evolving property landscape. Investors looking for long-term capital appreciation, strong rental returns, and premium waterfront living will find unmatched opportunities in RAK’s booming real estate market,” he said.
