Bayut, the UAE’s leading property portal, has released its first-ever Ras Al Khaimah Real Estate Market Report, covering first half of 2023. Over recent years, RAK has established itself as a promising hub of real estate investment opportunities, a fact which is reflected in the data reported in Bayut’s Ras Al Khaimah H1 2023 report.
The statistics within the report illustrate a consistently steady demand for properties in the emirate’s most popular residential areas, which is contributing to price increases across both the rental and sales sectors.
Bayut’s data also suggest that investor interest has largely been concentrated upon existing and upcoming waterfront/island developments in Ras Al Khaimah. This interest comes as no surprise considering the attractive lifestyle the emirate has to offer and the promise of exciting projects in the pipeline.
The healthy state of Ras Al Khaimah’s real estate market is expected to sustain for many years, especially with the Wynn Al Marjan Island resort, inclusive of a ‘gaming area’, due to open its doors in 2027.
When it comes to apartments for sale in Ras Al Khaimah, Al Hamra Village has been the top choice for investors:
Apartments for sale in Al Hamra Village have recorded an increase of over 4% in average price-per-square-foot.
Buyers have shown a preference for the apartments in Al Marjan Island where the average price-per-square-foot increased by 7.49%, and Mina Al Arab where apartments have become cheaper by under 1%.
Investors buying apartments in Ras Al Khaimah have also shown a keen interest in areas such as Yasmin Village and Dafan Al Nakheel.
Al Hamra Village and Mina Al Arab have been the top choices for investors looking to buy villas in RAK, further highlighting considerable market interest in the emirate’s premier waterfront developments.
With an excellent ROI of 11.61%, the apartments for sale in Yasmin Village offered the best rental yields. Al Hamra Village and Dafan Al Nakheel also reported favorable projected rental yields of around 7%.
The villas in Al Hamra Village have recorded average rental yields of 6% during H1 2023, with houses in Mina Al Arab offering 5% rental returns.
For the first half of 2023, rental apartments in Al Hamra Village have been in high demand.
There was an increased demand in the following areas:
Flats for rent in Al Hamra Village, Al Marjan Island and Mina Al Arab have reported increases of up to 9.86% in average annual rent.
Other areas tenants have considered when it comes to renting apartments in Ras Al Khaimah include Al Nakheel and Al Seer. Asking rents in these areas remained unchanged during H1 2023.
Continuing to showcase the community’s popularity, Al Hamra Village has been the most-searched-for area to rent villas in RAK, resulting in rental increases in both 3-bed and 5-bed configurations. Mina Al Arab has also attracted considerable tenant interest, despite overall increases in average rent.
To read our comprehensive real estate market analysis, check out the Ras Al Khaimah Market Report for H1 2023.
Dynamic market that has defied global expectations: Commenting on the findings, Haider Ali Khan, the CEO of Bayut & dubizzle and the Head of Dubizzle Group MENA said:
“Throughout the first half of 2023, we have witnessed a dynamic market that has defied global expectations and showcased its potential for sustainable growth. Traffic has gone up by well over 20-25% in most key areas in Ras Al Khaimah, and investors from across the globe have recognized the emirate as a strategic destination, making it a hotspot for real estate opportunities”.
“The government’s proactive measures, strategic initiatives, and vision for sustainable growth continue to position the emirate as an investment destination of choice in the region”, Khan added.
“At Bayut, we take immense pride in being part of this transformative journey, providing cutting-edge technology and invaluable insights to empower buyers, sellers, and investors in making well-informed decisions. Our commitment to transparency and excellence has translated into creating a positive environment for the market as a whole and we are proud to be playing a pivotal role in shaping the future of the emirate’s real estate landscape”, he concluded.
Meanwhile, Dubai’s real estate market recorded 551 sales transactions worth Dhs1.8 billion on Thursday, in addition to 92 mortgage deals totalling AED384.85 million, and 19 gift deals amounting to Dhs111.2 million, data released by Dubai’s Land Department (DLD) showed.
The sales included 506 villas and apartments worth Dhs1.4 billion, and 45 land plots worth Dhs391.15 million.
