Ras Al Khaimah (RAK) is one of seven emirates in the United Arab Emirates, gaining popularity as a promising real estate hotspot for property investors. Statistics show that in the past year, RAK property prices increased by 35%, and its rental rates increased by 9%, which is impressive and opens the doors to investment for investors. After Dubai and Abu Dhabi, Ras Al Khaimah is transforming into a rising star of UAE real estate.
New ambitious development boosted by government initiatives and a booming tourism industry makes the RAK an affordable and higher returns option in both commercial and residential real estate. It attracts local and international investors who want to invest in long-term projects.
However investment in real estate is a critical decision that requires careful consideration and strategic planning. If you are looking to invest in RAK property under 1 crore, this article will help you in providing available and best options for investment.
But Why Invest in Ras Al Khaimah?
Multiple reasons are there to prove why investment in Ras Al Khaimah is worth it. But I’ll highlight a few reasons that are enough to convince you to make an investment in RAK. These reasons are:
Strategic Location: RAK is located at the crossroads of trade and commerce with access to the UAE and GCC ecosystems. And most importantly, 35% of the world’s total seaborne oil passes through the coastal waters of RAK Ports.
Strong Connectivity and Logistical Advantages: RAK offers strong connectivity to major logistical hubs, including Saqr Port which is the largest bulk container port in the MENA region. RAK is only one hour drive away from Dubai International Airport.
Rising Tourism: Tourism in RAK is rising at a rapid pace. Its total area of 660 square miles and 40 miles of long coastline is positioning RAK as an investor-friendly city supported by various government and private initiatives.
High Return on Investment (ROI): The government of RAK is planning to expand its international airport to accommodate visitors as the tourism and investment sectors in the city rise. This contributes to the rise in the property and rental prices of villas and departments.
Allows Foreign Property Ownership: Investment in Ras Al Khaimah’s property allows 100 foreign property ownership, which makes it an attractive destination for investment. The establishment of brand-new luxury hotels and residences, such as Emaar Address, JW Marquis, DarGlobal Aston Marti,n etc contributes more to the investment opportunities in RAK.
Types of Properties to Invest in Under 1 Crore
If you have a budget of under 1 crore (approximately AED 450,000), you can invest in various property types in RAK. These are:
- Apartments: You can invest in studio and one-bedroom apartments under this budget. These spaces are best for singles and couples, or you can use it as rental properties that target expatriates and young professionals.
- Townhouses: Apart from apartments, investors can also invest in some townhouses in specific areas of RAK that fall under the budget of 1 crore. These townhouses have more space and privacy compared to apartments.
Popular Areas for Investment in RAK
Several neighborhoods in RAK offer properties within the specified budget:
Al Marjan Island:
It is a manmade island located on the coast of Ras Al Khaimah and offers a wide range of properties, such as hotels, resorts, and residential units. Some of these units are available within your budget. Many development activities and new projects, such as the Emaar Beachfront Residences, are under construction, attracting visitors to invest in RAK properties.
Real Real Estate Prices: Al Marjan Island (Ras Al Khaimah) vs. Dubai
| Property Type | Ras Al Khaimah (Al Marjan Island) | Dubai |
| Apartment (Studio) | Starts from AED 395,000 | Starts from AED 600,000 |
| Apartments (2 Bedrooms) | Starts from AED 500,000 | Up to AED 829,000 |
| Townhouse (2-3 Bedrooms) | Starts from AED 750,000 | Starts from AED 1.2 Million |
| Villas (3-4 Bedrooms) | Starts from AED 1 Million | Starts from AED 1.4 Million |
Rental Yield Trends
If you invest in Apartments in Ras Al Khaimah, you can earn between AED 53,000 and AED 125,000 per year in rent, depending on the location. It means you can get a stable and secure income by investing in Ras Al Khaimah property.
Al Hamra Village:
Al Hamra Village is situated along the pristine Arabian Gulf. It is a mixed-planned community of Ras Al Khaimah. This area offers a diverse range of high-end recreational spaces and luxurious residences. This area also has 5-star hotels, Al Hamra Mall, the 18-hole Al Hamra Golf Club, and the Al Hamra Marina & Yacht Club.
It offers the best opportunity to invest in villas and townhouses where you will get a family-oriented atmosphere and facilities such as schools, parks, and shopping malls.
Rental Trends in Al Hamra Village
| Apartment Type | Average Rental Price in AED |
| Studio | 41,000 |
| 1 Bedroom | 58,000 |
| 2 Bedroom | 69,000 |
| 3 Bedroom | 116,000 |
Mina Al Arab:
Mina Al Arab is a waterfront project in Ras Al Khaimah. This area has six districts, including two islands, and offers direct views of the Arabian Gulf. It provides a peaceful environment with natural beauty. Investors can invest in villas, townhouses, and apartments, which are available at a reasonable price.
Mina Al Arab is the best choice for one who loves nature and wants a balanced lifestyle. This area focuses more on sustainability. They have green spaces, mangrove-lined walkways, and protected wetlands for local wildlife.
Property Types
- Apartments: Studio-5 bedroom options
- Townhouses: 3-5 bedroom options
- Villas: 4-7 bedroom options
Mina Al Arab Properties for Sale
| Six District Property | Starting Price in AED |
| Bay Residence (1-4 bedroom) | From: 477,000 AED |
| Bayviews (1-3 bedroom) | From: 530,000 AED |
| Gateway 2 Residences (1-3 bedrooms) | From: 700,000 AED |
| Quattro Del Mer (Studio-3 bedroom) | From: 875,000 AED |
| Cape Hayat (1-3 bedroom) | From: 590,000 AED |
| Porto Playa (Studio-2 bedroom) | From: 800,000 AED |
Julphar Towers:
Julphar Towers is a twin-tower complex in Ras Al Khaimah. It has 43 floors that include both residential and commercial spaces. These towers provide all modern amenities like a gym, swimming pool, daycare, kid’s play area, and business center.
Julphar Towers has 349 residential apartments including studios to 4 bedroom units and 468 commercial space. Investors can invest in a wide range of properties such as apartments, commercial buildings, malls, restaurants, etc.
Rental Trends in Julphar Towers
| Apartment Type | Average Rental Price in AED |
| Studio | 26,000 |
| 1- Bed Apartment | 39,000 |
| 2- Bed Apartment | 58,000 |
| 3- Bed Apartment | 65,000 |
| 4- Bed Apartment | 79,000 |
Key Considerations for Investors
- Legal Framework: If you are a foreign investor, before making any investment, you must familiarize yourself with the property ownership laws in RAK. There are certain specific areas in RAK that are designed as freehold zones where foreigners can own property outright.
- Financing Options: Before investing money in properties, investors must explore mortgage options available for non-residents because there are some banks in the UAE that offer financing solutions to foreign investors, but terms and conditions may vary.
- Rental Yields: Invest in the Property that offers higher rental income. Investing in the property at the prime location or near key amenities attract a higher rental yield. Research the rental market before investment.
- Developer Reputation: If you are thinking of investing in off-plan properties, first analyse the track record of the developer to ensure timely delivery and quality construction.
Conclusion
Ras Al Khaimah’s real estate market offers diverse opportunities for making investments in different properties under 1 crore. RAK provides affordable options to invest in studios, apartments and villas. However an investor must be careful and diligent before making any type of investment. He should invest in properties that promise good returns and long-term value. Keep in touch with local experts to navigate the real estate market effectively.
