Ras Al Khaimah’s real estate market is witnessing a sustained growth in demand for residential properties with the emirate experiencing strong economic fundamentals and a solid fiscal position, says a report.
S&P Global is forecasting a 4.2% annual GDP growth through 2027 for Ras Al Khaimah. Inflation remains stable, with a slight annual increase in the Consumer Price Index (CPI). Crucially, FDI is also now gaining momentum, with AED700 million attracted across six key projects in the first half of the year alone, including a major adhesives facility by HB Fuller, said CBRE Middle East, a global leader in commercial real estate services, in a research paper.
RAKEZ, the Ras Al Khaimah Economic Zone, saw strong growth in H1 2025, adding 8,506 new companies, a 43% year-on-year increase, and was named the Fastest-Growing Economic Zone in the UAE in March 2025.
RAK's residential market continues to thrive
The second quarter saw approximately 1,760 off-plan residential sales transactions recorded, generating a total sales value of AED 3.6 billion. The launches of high-profile projects like the Fairmont Hotel and Residences, Anantara Branded Residences, and Enta Mina contributed to this positive performance. Average apartment rents increased by 20.8% and villa rentals by 5.3%.
The demand for branded residences is also very much on the rise, with luxury names like Ritz-Carlton and Armani entering the market. Branded residences are expected to comprise 25% of the upcoming freehold supply to be delivered by 2030, with approximately 4,800 units planned for completion during this period. As delivery activities ramp up, ~19,300 additional units are projected to be completed between 2025 and 2030, solidifying Ras Al Khaimah’s status as a premier investment destination.
Strong mometntum in tourism
The Tourism Sector also experienced strong momentum in H1 2025, contributing approximately 5% to
the Emirate’s GDP. Hotel visitor arrivals reached 653,700, up 6% year-on-year, supported by expanded routes at RAK International Airport.
International tourists made up 50% of these arrivals, with strong growth from emerging markets. Total guest nights surpassed 2.27 million, with hospitality revenues rising 9% year-on-year to AED822 million, driven by a 14% increase in room revenue.
MICE and Weddings revenues grew by 36%. Occupancy rose by 1.4 percentage points, while Average Daily Rate (ADR) increased by 7.6%, and Revenue per Available Room (RevPAR) grew by 9.1%.
RAK now boasts 55 operational hotels, with the sector set to expand further with three more openings
before year-end. The pipeline remains robust, with 29 new hotels expected by 2030, including the Hard Rock Hotel & Residences and the Fairmont Hotel & Residences, reflecting the ongoing investment in the emirate's hospitality sector. Accor continues to lead the market, while Marriott International and Wynn Resorts are shaping the future of high-end hospitality.
Wynn's latest offering, Enclave, will be an ultra-luxury concept within its flagship resort.
Matthew Green, Head of Research MENA, commented: “Ras Al Khaimah continues to provide a compelling story to investors, reflecting a market in rapid transformation. The surge in residential sales, the sustained growth of the hospitality sector, and the implementation of strategic initiatives which are driving the development of new, high-end offerings, are all indicative of a market going through a positive transformation. The increasing presence of branded residences, the expansion of the luxury hospitality segment, and the ongoing investment in infrastructure are all contributing to Ras Al Khaimah's emergence as a premier global destination for real estate investment and tourism. This is reflected in the recent Wynn announcement confirming that an agreement for a second Casino plot is already in place, establishing a pathway for future expansion. Accordingly, we remain optimistic about the future trajectory of the market, amidst increasing FDI and sustained interest from domestic and international investors across multiple sectors.” - TradeArabia News Service
