(MENAFN- Khaleej Times)

Apartment prices on Al Marjan Island surged by 16.8 per cent year-on-year in the third quarter of 2025, marking the highest growth among all residential areas in Ras Al Khaimah, according to the latest ValuStrat Price Index (VPI). The island also recorded a robust 6.3 per cent increase in capital values over the quarter, underscoring its growing appeal among investors and homebuyers.

The broader apartment market in Ras Al Khaimah mirrored this upward trend, with capital values rising 15.5 per cent annually and 4.9 per cent quarter-on-quarter. This performance pushed the apartment VPI to 122.0 points, up from the base of 100 set in Q1 2024. Al Hamra and Mina Al Arab also posted strong annual growth in apartment values, at 14.8 per cent and 13.6 per cent respectively.

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Villas, while still appreciating, saw a slight deceleration in growth. The villa index reached 122.6 points, reflecting a 13.8 per cent annual increase and a 3.3 per cent rise over the quarter. Mina Al Arab villas led the segment with a 15.8 per cent year-on-year gain, followed by Al Hamra villas at 12.1 per cent.

Overall, the VPI for Ras Al Khaimah's freehold residential market climbed to 122.2 points in Q3, representing a 14.9 per cent annual increase and a 4.3 per cent quarterly rise. The average capital value for residential properties stood at Dh1.41 million, with apartments averaging Dh1.18 million and villas at Dh2.28 million. On a per-square-foot basis, apartments were valued at Dh861, while villas commanded Dh1,025.

Rental yields remained healthy, averaging 5.4 per cent across the emirate's freehold residential properties. Apartments matched the average with a 5.4 per cent gross yield, while villas trailed slightly at 5.2 per cent.

The sales market in Ras Al Khaimah continued to be dominated by off-plan transactions, which accounted for a staggering 84 per cent of all residential sales in the first nine months of 2025. More than 4,100 off-plan units were sold during this period, generating over Dh8.2 billion in value. The average transaction size for these properties was Dh2 million.

In contrast, the ready home segment remained subdued, with just 776 units sold between January and September, totaling Dh909 million in value. The average transaction size for ready homes was Dh1.6 million. Apartments made up the bulk of these ready transactions, comprising 76 per cent of the total, while villas accounted for the remaining 24 per cent.

Despite the strong performance in capital values, overall transaction volumes declined year-on-year. Off-plan sales dropped by 20.5 per cent, while ready home transactions fell by 15.7 per cent, indicating a more cautious market sentiment amid rising prices.

Among the top-performing locations, Al Marjan Island stood out not only for its price growth but also for its premium pricing. Apartments on the island were valued at Dh1,127 per square foot, significantly higher than the Dh890 in Al Hamra and Dh888 in Mina Al Arab. Villas in Mina Al Arab also commanded a premium, with average capital values reaching Dh2.4 million.

The data underscores a clear trend: investors and end-users are increasingly drawn to waterfront and lifestyle-centric communities, with Al Marjan Island emerging as a standout destination. Its rapid appreciation in value suggests strong demand, likely driven by ongoing infrastructure developments and the island's positioning as a luxury residential and tourism hub.

“Gross residential rental yields across RAK averaged around 5.4%, with apartments at about 5.4% and villas at 5.2%. That's one of the reasons investor interest has stayed consistent, especially alongside lifestyle-led demand for waterfront and integrated communities,” Saadain Lari | Director & Head of Marketing, ValuStrat, told Khaleej Times.

As Ras Al Khaimah continues to evolve as a real estate hotspot, the Q3 2025 figures highlight a market in transition-buoyed by investor confidence in off-plan developments and a growing appetite for high-end coastal living.

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