Bayut, the UAE’s leading property portal, released its inaugural Ras Al Khaimah Real Estate Market Report for H1 2023, Invest-Gate reports.
The report highlights the growing interest in real estate investment opportunities in Ras Al Khaimah (RAK) and the consequent price increases in the rental and sales sectors.
The data from the report demonstrates a consistent and steady demand for properties in RAK’s most popular residential areas, indicating a positive outlook for sustainable growth in the emirate’s real estate market.
Investors have shown particular interest in existing and upcoming waterfront and island developments, attracted by the appealing lifestyle offered by RAK and the promise of exciting projects in the pipeline.
Furthermore, regarding apartments for sale in Ras Al Khaimah, Al Hamra Village emerged as the top choice for investors. The average price per square foot for apartments in Al Hamra Village increased by over 4%.
Buyers have also shown a preference for apartments in Al Marjan Island, where the average price per square foot has increased by 7.49%, and in Mina Al Arab apartments have become slightly cheaper by less than 1%. Other areas attracting investor interest for apartment purchases include Yasmin Village and Dafan Al Nakheel.
For villa investments, Al Hamra Village and Mina Al Arab have been the preferred choices, highlighting the significant market interest in RAK’s premier waterfront developments.
Regarding rental yields, apartments in Yasmin Village offer the best return on investment with an excellent ROI of 11.61%. Al Hamra Village and Dafan Al Nakheel also project favorable rental yields of around 7%.
Rental yields for villas in Al Hamra Village during H1 2023 averaged 6%, while houses in Mina Al Arab offered 5% rental returns.
In the rental market, apartments in Al Hamra Village have experienced high demand during H1 of 2023. Other areas seeing increased demand for rental apartments include Al Marjan Island and Mina Al Arab, with average annual rents increasing by up to 9.86%.
Al Nakheel and Al Seer are also considered by tenants looking for rental apartments in Ras Al Khaimah, with asking rents remaining unchanged during H1 2023.
Notably, Al Hamra Village remains the most sought-after area for renting villas in RAK, leading to rental increases in 3-bed and 5-bed configurations. Mina Al Arab has also attracted significant tenant interest, despite overall increases in average rent.
For his part, Haider Ali Khan, CEO of Bayut & Dubizzle and Head of Dubizzle Group MENA, commented on the findings, saying, “Throughout the first half of 2023, we have witnessed a dynamic market that has defied global expectations and showcased its potential for sustainable growth,” adding “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.”