Apartment Prices Reach Record High

Ras Al Khaimah's (RAK) residential market experienced significant growth in 2025, with prime apartment prices reaching Dh2,428 per square foot, the highest in the current cycle. This surge was driven by strong capital appreciation in coastal areas like Al Marjan Island, Al Hamra, and Mina Al Arab. Villa prices also saw an increase, averaging Dh1,211 per square foot, fueled by consistent demand in Al Hamra. Overall, apartment prices rose by 32% year-on-year, while villa prices increased by 11%. Rental trends mirrored this, with apartment rents climbing nearly 25% annually, and villa rents remaining stable, with growth in prime waterfront areas.

This growth reflects broader economic momentum, supported by strong macroeconomic fundamentals, record foreign investment, and a maturing property market. Ras Al Khaimah has attracted substantial foreign direct investment and is expanding its economic base through tourism and industrial projects. New developments, including branded residences like Mondrian Beach Residences and Jacob & Co Residences, are solidifying the emirate's position in the luxury segment. The rapid price growth in prime locations has created a gap between sale prices and rental levels, which is expected to ease as new properties enter the market. Real estate activity has increased significantly, indicating a shift towards a market focused on stability, infrastructure, and long-term value.

Tourism played a key role in driving real estate activity, with a record 1.36 million visitors in 2025. Hotel performance improved, with occupancy, average daily rates, and revenue per available room all increasing. The emirate has over 9,000 hotel keys, with over 9,500 additional keys planned for 2026-2030, primarily in the five-star category. Global hospitality operators are expanding their presence, reinforcing confidence in long-term tourism growth. With major developers bringing branded residences and infrastructure upgrades, Ras Al Khaimah is attracting significant interest from global investors, and delivery cycles are expected to accelerate from 2027 onwards.