RAK Residential Capital Values Jump 12.7% In 2025 Amid Strong Investor Demand

(MENAFN- Khaleej Times) Ras Al Khaimah's residential property market recorded a robust 12.7 per cent year‐on‐year increase in capital values in Q4 2025, a new report showed on Thursday.

The latest ValuStrat Price Index (VPI) on the emirate reached 123.9 points, reflecting continued, albeit moderating, growth across apartments and villas as demand for quality waterfront and master‐planned communities remained strong.

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Apartment and villa performance diverged slightly. Apartment capital values rose 13.9 per cent annually and 1.5 per cent quarterly, driven largely by strong gains on Al Marjan Island, where prices surged 17.2 per cent year‐on‐year-the highest among tracked sub‐markets. Villas, meanwhile, grew at a more measured 10.4 per cent year‐on‐year, with Al Hamra leading the category at 12.1 per cent annual growth and 2.5 per cent quarterly appreciation.

Despite moderating price growth, investment demand remained exceptionally strong. Off‐plan sales dominated activity, accounting for 88 per cent of all residential transactions in Q4. More than 1,500 units were sold off‐plan, generating over Dh2.9 billion in value-nearly ten times the Dh241 million recorded in the ready‐homes market, which saw just 213 transactions.

This imbalance reflects a deepening investor preference for new launches, supported by a steady pipeline of branded and waterfront developments. Analysts say the shift also aligns with broader market patterns. Gulf News reported that off‐plan deals already represented 84 per cent of all RAK residential sales in the first nine months of 2025, underscoring a structural move toward early‐stage investment.

Market fundamentals remain robust. The Ras Al Khaimah Statistics Center recorded Dh13.06 billion in total real estate activity in Q1 2025, up from Dh1.36 billion in 2017-an 855 per cent surge over eight years-highlighting long‐term investor confidence.

Gross rental yields remained attractive at 5.3 per cent for apartments and 5.1 per cent for villas, according to ValuStrat. These returns position RAK competitively among UAE real estate markets, especially as demand for coastal and lifestyle‐oriented communities rises. CBRE notes that prime coastal apartments in RAK reached“a new cyclical peak” in 2025 amid record capital appreciation and strong appetite for branded waterfront residences.

Tourism-an important demand driver-also strengthened. The emirate welcomed over 1.36 million visitors in 2025, supporting hospitality‐driven job creation and boosting rental demand across key districts. Transport upgrades, including progress on the Wynn Boulevard bridge linking the upcoming $3.9 billion Wynn Al Marjan Island resort, are expected to further propel real estate momentum ahead of the resort's planned 2027 opening.

While growth slowed in Q4, analysts expect the market to remain on a strong long‐term trajectory. Savills projects that RAK's residential stock will double by 2030, driven by aggressive development pipelines and accelerating investor inflows. With resilient fundamentals, record off‐plan sales, and transformative tourism projects underway, RAK is poised to continue its rise as one of the UAE's most dynamic and investor‐friendly real estate markets moving into 2026.

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