In the second quarter of 2025, Ras Al Khaimah’s residential real estate prices continued to rise, with prices for flats and villas approaching Dh2,000 and Dh1,200 per square foot, respectively.
Al Marjan experienced a 71% year-over-year increase in units, followed by Al Hamra at 39% and Mina Al Arab at 22%, according to real estate firm CBRE.
With a 20% rise in the average villa price in the northern emirate, Al Hamra spearheaded the rally in the villa category.
“These increases are attributed to a market shift towards a new basket of premium projects, rather than reflecting price growth in existing stock,” CBRE analysts said in the latest study.
The multi-billion dirham Wynn Al Marjan Resort, which is scheduled to open in 2027, will make Al Marjan Island one of the most popular and sought-after real estate destinations in the United Arab Emirates.
“The momentum generated by the Wynn Resort remains the key driver, reshaping the market. Developers are actively expanding and responding with upscale offerings, aiming to capture the influx of HNWI drawn by the resort’s appeal, not only in Al Marjan, but also across Mina Al Arab, Al Hamra, and the newly emerging Beach District,” the analysts said.
In order to meet the increasing demand from both domestic and foreign investors, the emirate opened RAK Central, a residential and commercial district, on Wednesday. It will have over 4,000 residential units.
RAK developers are broadening the scope of payments to accommodate the diversification of the buyers’ portfolios.
RAK Properties recently announced a partnership with Hubpay, a financial company, to enable the purchase of real estate using cryptocurrencies like Bitcoin.
Rents increase
Ras Al Khaimah’s robust general economic growth is another factor contributing to the real estate market’s surge.
S&P Global projects that the GDP of RAK will rise by 4.2% a year until 2027, whereas the RAK administration anticipates growth of 6.1% until 2026.
Significantly, in the first half of 2025, the emirate got Dh700 million in international direct investment.
In addition to the city’s increasing population, RAK had a sharp increase in rentals in the second quarter of 2025, going up 5%. Mina Al Arab saw the largest rise, rising 12.4%. In contrast, villa rentals increased by 6%.
“Rising rents are being driven by strong economic activity, a growing population attracted by new job opportunities and limited new supply as only 570 units have been delivered so far this year and over 1,800 in 2024,” CBRE analysts said.
According to government laws, the annual rent renewal rise in Ras Al Khaimah is limited to 10%.
“Much of the new stock entering the market is positioned at a high or premium end, thus naturally commanding higher rates,” said CBRE.