UAE: RAK Property Rally Continues In 2025 As Prices Near Dh2,000 Per Sqft

Residential property prices in Ras Al Khaimah continued to rally in the second quarter of 2025, as apartments and villa rates reached close to Dh2,000 and Dh1,200 per sqft, respectively.

According to real estate consultancy CBRE, Al Marjan saw a 71 per cent year-on-year jump in apartments, followed by Al Hamra at 39 per cent and 22 per cent in Mina Al Arab.

In the villa segment, Al Hamra led the rally with a 20 percent increase in average villa prices in the northern emirate.

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“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.

Al Marjan Island is one of the hottest and most sought-after real estate spots in the UAE, thanks to the multi-billion dirham upcoming Wynn Al Marjan Resort, which will open in 2027.

“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.

On Wednesday, the emirate launched RAK Central - a residential and commercial district - to provide over 4,000 residential units to cater to growing demand from domestic and international investors.

As the buyers' portfolio diversifies, RAK developers are also expanding the payment scope to facilitate them.

Recently, RAK Properties announced a tie-up with fintech platform Hubpay to facilitate property purchases through cryptocurrencies such as Bitcoin.

The rally in Ras Al Khaimah's property market is also helped by its strong overall economic growth.

According to S&P Global, RAK's GDP is projected to grow 4.2 per cent annually through to 2027, while the RAK government sees growth at 6.1 per cent to 2026.

Importantly, the emirate received Dh700 million in foreign direct investment in the first half of 2025.

Amidst a growing population of the city, RAK also saw rents seeing a strong growth in the second quarter of 2025, rising five per cent. The increase was led by a 12.4 per cent jump in Mina Al Arab. While villa rents rose by six per cent.

“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.

In Ras Al Khaimah, annual rent renewal increase is capped at 10 per cent under the government regulations.

“Much of the new stock entering the market is positioned at a high or premium end, thus naturally commanding higher rates,” said CBRE.

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