Why Real Estate Investors Are Flocking to Ras Al Khaimah?

The latest episode of The Dubai Connect Podcast, available on
YouTube, Apple Podcasts, and Spotify, where Certified International Property
Specialist/Licensed Realtor® GG Ghada Benitez and her partner Ahmed Ashfaq,
on a mission to bridge the U.S. with the incredible real estate investment
opportunities in Dubai, discuss why all eyes are on Ras Al Khaimah, aka RAK.

They share the upcoming launch of the first ever gaming casino, top developers
who have launched off plan projects in the area, and more:
Ras Al Khaimah, a jewel in the United Arab Emirates, is currently undergoing a
real estate renaissance that is drawing the attention of global investors, including
American and Canadian investors. Several factors contribute to making this
emirate an enticing destination for property investment.

The $3.9 Billion Wynn Al Marjan Island Project
At the forefront of this real estate surge is the monumental $3.9 billion Wynn Al
Marjan Island project, with the first and only gaming casino in the GCC.
Developed by local partners Marjan LLC and RAK Hospitality Holding, this
hospitality and gaming project is set to become a global attraction, attracting
tourists and investors worldwide. High-profile investors have already shown keen
interest, pouring funds into the Al Marjan Island project.

Unprecedented Investor Demand
A recent conference in Dubai highlighted the unprecedented demand from
investors for top tier developers’ projects in Ras Al Khaimah, especially Al Marjan
Island, with its entire inventory sold out. Nikki Beach; Nobu Residences, and The
Address Hotels are just a few projects in the works. The promise of exceptionally
good returns on investments, with strong projected rental return opportunities,
are key motivators for investors exploring opportunities in this thriving emirate.

A Strong Secondary Market
The emergence of a robust secondary market signals the maturity and stability of
Ras Al Khaimah’s property market. Investors, confident in the emirate’s long-term
potential, actively participate in buying and selling properties, fostering a resilient
market ecosystem.

Insights from Real Estate Experts

John Allen, CEO of valuation and advisory at Asteco, emphasizes that the
increase in large-scale investments in Ras Al Khaimah by both local and
international players, such as Aldar, Ellington, Select Group, Wynn and Hilton,
signifies a new phase of development, positively impacting the real estate
market.

Relative Affordability Compared to Dubai
Ras Al Khaimah’s relative affordability compared to neighboring Dubai is a
significant factor driving demand. As Dubai’s property market continues to rise,
American and Canadian investors seek alternatives, and Ras Al Khaimah
emerges as an attractive option.

Diverse Investor Base
According to John Allen, the primary demand driver in Ras Al Khaimah’s property
market is the investment sector. This includes investors seeking long-term rental
income, those interested in short-term holiday home rentals, and individuals
anticipating capital appreciation. The diversity of investment options draws
various types of American investors to the emirate.

Short-Term Rental Returns: Airbnb Potential
Adding to the appeal for American and Canadian investors is the potential for
short-term rental returns, especially through platforms like Airbnb. Ras Al
Khaimah’s thriving tourism sector and the influx of visitors provide a lucrative
opportunity for investors looking to capitalize on the demand for short-term
accommodations.

Capital Appreciation Potential
Beyond rental returns, Ras Al Khaimah presents significant potential for capital
appreciation. The emirate’s strategic developments, coupled with increasing
demand, contribute to the overall appreciation of property values, making it an
attractive long-term investment.

Low Cost of Entry
For American and Canadian investors, Ras Al Khaimah offers a low cost of entry
into a booming real estate market. This affordability factor allows investors to
diversify their portfolios without significant financial barriers.

Top Developers: Select Group, Emaar, Ellington, and Aldar

Ras Al Khaimah’s real estate landscape is shaped by top developers, including
Select Group, Emaar, Ellington, Aldar, Hilton and Wynn. Their involvement in the
emirate’s key projects ensures quality construction and attractive investment
opportunities for American and Canadian investors.

Conversation about Nikki Beach Club and Nobu
Adding to the allure of Ras Al Khaimah is the vibrant lifestyle it offers. Notable
establishments like Nikki Beach Club and Nobu contribute to the emirate’s social
scene, creating a unique blend of luxury and leisure. These world-renowned
venues enhance the overall appeal for investors, signaling a lifestyle investment
beyond just property.

Government Protection for Foreign Investors
Ras Al Khaimah prioritizes the protection of foreign investors through transparent
and investor-friendly policies. The government’s commitment to ensuring a
secure environment for international investors adds an extra layer of assurance
for American investors venturing into the market.

A Bright Future for Ras Al Khaimah’s Property Market
Ras Al Khaimah’s property market is poised for continued robust growth,
supported by infrastructure development, complementary policies, and a
diversified economy. The expanding tourism sector will play a pivotal role,
promoting the construction of hotels, resorts, retail outlets, and leisure facilities,
boosting residential demand and creating a symbiotic relationship between
tourism and real estate.

Why Invest in Ras Al Khaimah?

  1. Strategic Location: Ras Al Khaimah’s strategic location provides easy
    access to major markets in the Middle East and beyond, enhancing logistical
    advantages for American businesses.
  2. Business-Friendly Environment: The emirate boasts a business-friendly
    environment with investor-friendly policies, including 100% foreign ownership and
    zero taxation, creating a competitive advantage appealing to American
    businesses and investors.
  3. Diverse Economy: Ras Al Khaimah’s diverse economy, with thriving
    sectors such as manufacturing, tourism, real estate, and renewable energy,

provides American investors with a wide range of opportunities to diversify their
portfolios.

Upcoming Supply of Residential Units
Most of the new supply of residential units in Ras Al Khaimah is concentrated
along the coast, including developments like Al Hamra Village, Mina Al Arab, and
Al Marjan Island. Around 1,000 residential units are estimated to be delivered
within these developments in 2023-24, representing a significant 10% increase in
the existing stock.

Recent Developments
One of the latest developments is the collaboration between Dubai Investments
and Al Marjan Island’s master developer, resulting in the acquisition of land to
develop Danah Bay. This mixed-use waterfront destination covers approximately
90,000 square meters, including 40,000 square meters of beachfront, featuring
209 villas, a residential tower with 128 apartments, and a 300-key 4-star upper-
scale hotel operated by Millennium and Copthorne Middle East Holdings.

Conclusion
In conclusion, Ras Al Khaimah’s real estate market is on the rise, fueled by
investor demand, strategic developments, a supportive business environment,
and attractive features such as short-term rental returns, potential for capital
appreciation, and low entry costs. With predictions of continued growth, Ras Al
Khaimah is emerging as a real estate hotspot in the UAE, offering diverse
opportunities for American investors. Don’t miss out on the potential that this
emirate has to offer in the world of real estate.


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