How Tourism Influences Ras Al Khaimah's Real Estate Market

Ras Al Khaimah, or RAK may be unnoticed by many. But it's quickly growing into one of the most sought-after destinations for the real estate market in the UAE and there are a lot of excellent reasons for this!

Amazing landscapes, exhilarating adventure, and the best resorts - all in one area. What is the reason behind all this shift?

The answer lies in tourism! RAK has strategically targeted the highest-paying tourists. This has made huge contributions to the rise in demand for real estate. 

So, if you're thinking about buying a home, this is the perfect time to think about it. Contact realtors in Dubai.

Why Tourism is Rising in Ras Al Khaimah

Ras Al Khaimah also has its own motivations that drive the growth of tourism within the region. These are factors that include cultural heritage as well as adventure. 

This includes Jebel Jais Flight, the longest zipline in the world, as well as world-class resorts. 

A significant portion of the strategy plan of the emirate, RAk, is trying to raise the contribution of tourism from 5 percent to a third by 2030. 

Wynn Al Marjan Resort The first UAE-based gaming casino, has been able to fulfill this idea. It is not just a draw for guests to the resort but also helps to establish the Emirate as an attractive investment destination.

Improvements in accessibility along with Ras Al Khaimah International Airport expansion will make the Emirate more accessible and appealing to investors and visitors alike.

Leading Places to Visit in Ras Al Khaimah

Jebel Jais: Jebel Jais is the highest mountain in the UAE with stunning views and an array of activities for adventure, including zip-lining to hiking. Jebel Jais has also hosted a variety of events, such as mountain concerts and adventure festivals, which attract tourists from all over the world.

Dhayah Fort: This is an historical site that provides breathtaking views of the sea and mountains. It is the sole hilltop fort that remains within the UAE and is of an important historical significance.

Al Marjan Island: This man-made marvel houses luxurious resorts, beachfront properties and multi-billion-dollar Wynn Resort. Four islands - Breeze, Treasure, View as well as Dream Island - have leisure luxury, exquisite dining and the desirable beach life.

Ras Al Khaimah National Museum is a great place to get a more detailed understanding of the local culture and the history. 

The museum is home to a variety of old-fashioned exhibits that show the perfect and worst about the history of the emirate and its history, which makes it an educational and enjoyable visit.

Impact Tourism Geospatial Ras Al Khaimah on Real Estate

The tourism industry across the country has seen significant effects on the RAK real estate market, creating investment opportunities in every segment: renting out short term, for long periods and even property sales. Let's take a look at the following:

Short-term Rentals

In the wake of increased tourist flow, the demand for rental properties that are short-term has increased. 

As a result, locations such as Al Marjan Island and Mina Al Arab are in huge demand. Many homeowners prefer renting their homes to tourists since it offers appealing rent yields. 

The Dubizzle H1 report 2024 revealed that the trend for rising rent of Al Marjan Island stands at 21.28 percent of rent, whereas Mina Al Arab has a rising trend of 19.05 percent in rental demand and an annual average rental that is AED 52K.

Buying Habits

It is believed that the Ras Al Khaimah real estate market has seen significant growth as it has diversified from new developments as well as the growth of tourism. 

Investors are mostly focusing on properties located in Al Hamra Village , Al Marjan Island, and Mina Al Arab most of which are beachfront homes and holiday homes.

According to the Dubizzle H1 report for 2024, Al Hamra Village emerged as the most popular buyer of apartments, in terms of the average price rise of 34.53 percent, or AED 1.12M. 

The prices of villas at Al Hamra Village and Mina Al Arab have risen for both international and local buyers.

Al Marjan Island is one of the increasing prices per square foot that indicates an improvement in demand for luxurious waterfront living at an average of 29.13 percent.

Why Now Is The Top Time To Invest In Ras Al Khaimah

It is believed that the Ras Al Khaimah Property Market is at a point of growth that is an ideal stage for investment. 

Tourism is growing as new mega-developments are established as well as the state has been assisting tourism initiatives, which can positively impact the value of property. Based on the latest trends from Dubizzle's H1-2024 RAK Property Market Report, this illustrates:

Apartment Sales

The median price for flats in RAK was up by a third. Al Marjan Island's median cost was 2.87M, 29.13% up from the previous H2 2023. Mina Al Arab was also growing by 31.32 percent, bringing the average of two bedrooms at AED 2.48M. 

The demand for these properties suggests the confidence that these properties will continue to be sought-after.

Villa Market

The villas located in Al Hamra Village continue to increase by 14.60 percent, whereas the properties located in Mina Al Arab are also growing steadily with an average selling price for a four-bedroom house of AED 4.57M. 

The sales of villas in Al Marjan Island have actually gained slightly more, at AED 18.01M. This shows the fervent interest and demand for properties that are of the highest quality.

Top Investment Areas in Ras Al Khaimah

The area is known for its waterside setting and rising appeal, this region offers the opportunity to grow in a balanced manner. 

Apartments are offered at the average 31.32 percentage points higher than the sales price. Its ROI is 3.09%. The villas located in Mina Al Arab also offer high returns. The typical prices for three-bedroom villas starting at AED 2.81M.

Conclusion

Ras Al Khaimah has a strong growth curve, offering increasing investment opportunities thanks to the expansion of the tourism industry and new government-backed developments. Property values and rental yields are on the rise, making this an excellent investment opportunity with the help of realtors in Dubai. Investors are also considering options to Buy Properties in Al Furjan and even looking at Property for Rent in Downtown Dubai as part of a diversified investment strategy.

When considering rental income from short-term leases, long-term capital gains, or new ventures into hospitality, it’s clear that RAK offers impressive returns on investment and growth potential.

Now is the ideal time to diversify your portfolio. Explore the properties in Ras Al Khaimah, beginning with homes on Al Marjan Island, Al Hamra Village, and Mina Al Arab, and secure your future in one of the most promising real estate markets.