Ras Al Khaimah’s residential real estate market burst into life in the first half of 2025, marked by substantial capital value growth, as highlighted by the ValuStrat Price Index (VPI). Overall, the VPI surged by an impressive 13.8% year-on-year, reaching an index level of 117.2 points by Q2 2025. This performance reflects a steady quarterly increase of 3.2%, compared to the baseline index value of 100 established in Q1 2024. The market’s buoyancy was evident across both villas and apartments, each segment recording noticeable gains, although at varying paces.
The villa segment experienced an annual growth rate of 15%, a slight decrease from the previous quarter’s 15.5%. The VPI for villas stood firm at 118.7 points, bolstered by a quarter-on-quarter rise of 2.7%. Conversely, the apartment market exhibited a growth rate of 13.2% year-on-year, with a quarterly uptick of 3.4%, bringing the index to 116.3. Noteworthy areas like Mina Al Arab led the charge in value appreciation, with villa prices soaring by 20% and apartments climbing by 14.5%. Other vital locations such as Al Hamra and Al Marjan Island also reported significant capital value increases.
Dominance of Off-Plan Sales
The rental yield landscape in Ras Al Khaimah is equally compelling, with an average gross rental yield of 5.6% for residential properties. Apartments significantly outperformed villas, registering yields of 5.7% compared to 2.3% for villas. In H1 2025, off-plan sales emerged as the dominant force in the market, accounting for a staggering 85% of freehold residential transactions. This equated to over 3,000 off-plan units sold, valued at over AED6 billion and averaging AED2 million per unit. This dynamic stands in stark contrast to the more muted ready-property market, which saw only 550 transactions worth AED646 million, with a lower average ticket size of AED1.6 million. Here, apartments led at 75% of sales, while villas comprised the remaining 25%.
Despite the healthy appreciation in property values, total transaction volumes showed a year-on-year decline; ready sales fell by 13.4%, and off-plan transactions dropped by 25.7%. This trend may indicate a slight cooling in buyer activity, as some potential purchasers may be deterred by the skyrocketing capital values.
Strong Market Performance
The real estate landscape in Ras Al Khaimah has continued to showcase strong performance through 2025, corroborated by data from leading real estate firms beyond ValuStrat. According to CBRE Middle East’s Ras Al Khaimah Real Estate Market Review 2025, the emirate’s economy is set to grow at an average of 4% annually through 2027. This growth is driven by thriving sectors, including tourism, manufacturing, and mining, all of which are expected to bolster property demand. In Q1 2025, average residential prices skyrocketed by 39% year-on-year, a reflection of new high-value project launches that recalibrated pricing benchmarks. Notably, average apartment prices reached AED1,684 per square foot, while villas saw an average of AED1,145 per square foot.
Rental markets are also thriving, with apartment rents surging by 20.8% year-on-year and villa rents seeing a 5.3% increase, indicative of strong demand, particularly in coastal areas like Al Marjan Island. The appetite for branded residences is growing, with luxury brands like Ritz-Carlton and Aston Martin entering the market. These branded residences are projected to make up 25% of forthcoming freehold developments, with approximately 4,800 units slated for delivery by 2030. Additionally, nearly 19,300 units are expected to complete by 2030, further establishing Ras Al Khaimah as a prominent luxury real estate investment destination. The emirate is also enhancing its hospitality sector, with 28 new hotels on the horizon by 2030, including the anticipated Wynn Resort in 2027, which is expected to further elevate the appeal of real estate in the region.
Rising Property Prices
A recent August 2025 report by Aark Developers underscores the upward trend in property sale prices and a dynamic rental market. Apartment prices have appreciated by approximately 18.5% year-on-year, with Al Marjan Island emerging as a hotspot due to its luxurious beachfront offerings. The average return on investment for apartments in this area is now around 5.75%, presenting lucrative opportunities for investors compared to saturated markets elsewhere in the UAE. The upcoming Wynn Al Marjan Island resort is also seen as a significant driver for this burgeoning market. Robust rental yields, property appreciation potential, and quality lifestyle offerings position Ras Al Khaimah as an increasingly attractive alternative to more saturated emirates.
