How Does the Tourism Industry Impact Property Values In Al Marjan Island?
As a central tourism hub, the property value in Al Marjan Island is significantly affected by development and tourism.
Overview of Al Marjan Island
Al Marjan Island is a group of four artificial islands that extend 4.5 kilometers to the Sea.
The four islands include Breeze, Treasure, Dream, and View and encompass an area of 2.7 square kilometers. It has 7.8 kilometers of beaches and 23 km of waterways. It's a simple place to reach, only 60 minutes from Dubai Airport.
- 👉🏽 Al Marjan Island's Vision as a Tourism Hub
- 👉🏽 Al Marjan Island was developed as a premier location to encourage tourism in Ras Al Khaimah. The master plan comprises hotels, resorts, residential properties, shopping, dining, and entertainment activities.
Key components
- More than 8,000 hotel rooms spread across the island.
- Luxury hotels like Rixos, DoubleTree by Hilton
- Upcoming Wynn Hotel that has gaming facilities
- 12,000 residential units
- Many dining and retail options, as well as a variety of shops
This makes Al Marjan a leading leisure and tourism destination that draws travelers worldwide.
Impact of Tourism Growth on Property Values
When Al Marjan Island establishes itself as a top tourist destination, the increase in visitor numbers significantly boosts real estate prices.
The following are some of the critical effects on the real estate market:
👉🏽 Surging Rental Yields
With more tourists coming to Al Marjan, hotels and hotel apartments are seeing higher occupancy and room rates.
The owners can offer higher rents, thereby pushing higher rental yields. The average rental yield for residential properties in Al Marjan Island is projected to be 5 - 8 percent per year.
👉🏽 Rising Investment Demand
Due to the lucrative rental yields, more investors are drawn to buy property on Al Marjan Island to leverage tourism activities.
The increasing demand for investment is putting pressure on the value of capital. Due to the high demand, YOO markets MASA Residence and Address Residences, owned by Emaar, offers 36 percent returns on investment over three years.
👉🏽 More Amenities and Attractions
New tourism projects are creating features like waterparks, beach clubs, and marinas for visitors. Adding more attractions to this island increases the attraction for visitors and residents.
Because of the high-end facilities focused on development, prices for studios have risen by 10 to 15 percent, and one-bedroom units have increased by 5-10% in the past quarter.
👉🏽 Capital Values
As tourism grows, the demand for residential real estate is expected to continue rising, causing home prices to rise.
The shortage of land to develop residential properties will increase the value of capital. According to estimates, home rates for Al Marjan Island are forecasted to increase by 10 to 15 percent per year.
Government Incentives
The Ras Al Khaimah government plays a key part in promoting tourism as well as real estate
- Significant infrastructure investments such as roads and airports.
- The laws on foreign ownership have been relaxed.
- Incentives for hospitality projects.
- A streamlined regulatory structure and business-friendly policies.
- Effective promotion and marketing for destinations.
Commercial Development
With more visitors, restaurants, retail brands, and chains are opening new restaurants across the island. Commercial properties that cater to tourists drive upwards the demand for real estate.
Economic Multiplier Effects
Increased tourism creates jobs in the hospitality industry and other services, creating employment and improving residents' incomes. This boosts demand for housing and consumption.
International Spotlight
Over time, as Al Marjan Island gains fame as a tourist hotspot locally and internationally, it is gaining more attention from high-end tourists. This makes it an elite destination, pushing up property prices.
The resulting impact of these tourism-driven dynamics leads to a vicious cycle of increasing the flow of investment, development activity, and property value in Al Marjan Island.
Key Tourism Projects Driving Property Values
Major tourism projects that enhance the appeal of investment in Al Marjan and the value of properties
Wynn Hotel and Casino
Wynn Resort and Casino, $3.9 billion, could be the world's first resort to be integrated into Ras Al Khaimah.
- It is expected to open in 2027.
- 5.6 million square feet
- More than 1500 rooms and villas
- The most luxurious amenities include food, retail and entertainment
The Wynn complex is the biggest tourism venture in the world on Al Marjan Island. It is expected to boost the value of homes in the area significantly.
The Address Residences
The project was developed by Emaar The Address, a project by Emaar Al Marjan Island that offers a 600-meter beachfront view.
- Townhouses and luxury apartments
- Handover expected in early 2028
- The average cost of AED 2775 per square foot
The project offers premium housing options that attract wealthy visitors.
30 percent lower property prices than in Dubai
Al Marjan apartments are approximately 30% less expensive than Dubai properties. RAK real estate is priced at AED1,627 per sqft, compared with AED2,203/sqft in Dubai. This makes Al Marjan an affordable, luxurious destination.
Investor Perspective - Al Marjan Island
From the standpoint of investors, Al Marjan Island offers:
- Capital appreciation, as property prices rise in tandem with increasing tourism.
- High rental yields are due to strong tourism and hospitality.
- Government support is vital for real estate development.
- The laws on foreign ownership have been relaxed.
- Connectivity and infrastructure that is developed.
Final Thoughts
Al Marjan Island's strategic emphasis on luxurious tourism boosts its real estate value.
The increasing number of visitors and the significant new developments create substantial property investments.
Although there are risks, the strength of Al Marjan's position as a tourist hub points to brighter times ahead for the property market.
Al Marjan offers homebuyers and investors the possibility of purchasing top freehold properties positioned to grow
