Property prices in these pockets projected to see a jump of up to 21% in the next 12-month period, says new market study
Select pockets in Ras Al Khaimah such as Mina Al Arab, Al Marjan Island and Al Jazirah Al Hamra are forecast to emerge as the next hot spots for real estate investments in the UAE, with property prices projected to see a jump of up to 21 percent in the next 12-month period, priming them to become the next haven for billionaires, a latest market study revealed.
The rising status of the emirate as the sought after tourist destination in the country, posting record number of tourist arrivals in the first half of 2023, entry of some of the biggest names in the global hospitality sector and the Maldivian-style beachfront luxury resorts are the major factor driving up property demand and prices in the emirate.
“The Ras Al Khaimah real estate market is growing quite rapidly in terms of price and the number of new projects. At the forefront of the city’s development is the territory of Mina Al Arab, which can give an investor an average of more than 20 percent return in the first year,” the AI-based market forecast by leading proptech Realiste said.
“Although the prices of properties in Al Marjan Island and Al Jazirah Al Hamra are growing at a lower rate – 17.7 percent and 13.2 percent, respectively – they are also quite attractive to investors, promising relatively high returns,” the report said.
Realiste said the booming number of tourists, the fast-growing economy and the plan to become the next haven for billionaires will be the major factors for the projected spike in property prices in these areas.
“There is no doubt that there will be a continuous demand for investment properties not just in Dubai, but also in other emirates such as Ras al Khaimah, Abu Dhabi and Sharjah,” Alex Galtsev, Founder and CEO of Realiste, told
He said the proptech’s newly developed platform allows investors to purchase properties with the same ease as booking a hotel room to take advantage of this trend.
Surge in project launches, entry of 5-star Ras Al Khaimah hotels
The Realiste report said the surge in demand for properties has led to the key pockets seeing a flurry of new project launches and heavy investments by five-star hotel groups in RAK.
Bay Residences, Gateway Residences and Marbella (in Mina Al Arab), Dana Bay Phase-3, Al Mahra and Bab Al Bahr Residences (Al Marjan Island) and Royal Breeze in Al Jazirah Al Hamra are among the high-end residential real estate projects launched in the recent period in the wake of the surge in demand.
The surge in tourist arrivals in the emirate has also led to the entry of several big names in the hospitality sector such as the InterContinental Hotels Group, The Carlton Ritz, Hilton, Mövenpick and Radisson.
Factors driving demand in key pockets
The study said Maldivian-style beachfront luxury resorts without skyscrapers, expected opening of 5-star luxury hotels such as InterContinental and Anantara soon and close proximity to the international airport and the free trade zone are identified as the major growth drivers for high-end properties in Mina Al Arab region, while that in Al Marjan is driven by its unique geography – 4.5 km into the seas, making it one of the top tourist spots in the emirate.
As for Al Jazirah, its 1.5 km sea coast stretching along four interconnected lagoons, 18-hole golf course, yacht club and 200-seat marina, besides the numerous restaurants serving various cuisines of the world, are the major factors for the projected surge in property demand and prices.