Buying in Ras Al Khaimah is simpler than in Dubai in some ways and less protected in others. There is no separate real estate regulator in the emirate. The ownership register, the transfer and the freehold area list all sit inside RAK Municipality, and most of the process runs through the developer and the Municipality rather than through an authority of the Dubai kind.
What follows is how a normal ready-property purchase runs. Off-plan works differently and has its own guide.
Where foreigners can buy
Foreign nationals can own freehold title in designated areas, with no restriction by nationality. Al Hamra Village, Al Marjan Island and Mina Al Arab are the three large communities consistently open to foreign freehold, and between them they hold most of the emirate’s modern housing stock. Dafan Al Nakheel and RAK Central are also named.
Al Nakheel itself does not appear on any published designated list, which surprises people who assume the whole emirate is open. Check the position plot by plot before you pay a deposit anywhere in the city.
The steps
- Set the budget properly. Add the transfer and registration costs, the agency fee, the first year of service charge and any furnishing to the purchase price before you decide what you can afford.
- View, then view again. See the unit at a different time of day. Aspect matters in a waterfront tower, and so does what is being built next door.
- Check the service charge and the community rules. Ask for the current rate per square foot and the community handbook. Some buildings restrict short letting; some prohibit split air conditioning units.
- Make the offer in writing. Price, what is included, the deposit, the target transfer date and who pays what. A verbal agreement here is worth nothing.
- Sign a memorandum of understanding and pay the deposit. Ten per cent is the usual figure, normally held by the agency or a lawyer rather than paid to the seller.
- Get the developer no objection certificate. The developer confirms the service charge is clear and consents to the transfer. This is the step that most often causes delay, so start it early.
- Transfer at the Municipality. Both parties attend, the balance is paid, the fees are settled and a new title deed is issued in your name.
- Connect and register. Etihad Water and Electricity for power and water, the community for access cards, and the building for your parking bay.
What it costs
Beyond the purchase price, budget for the Municipality transfer and registration fee, the developer no objection certificate fee, the agency fee and, if you are borrowing, the bank arrangement and valuation fees.
The service charge is the running cost that people underestimate. In apartment buildings it is charged per square foot per year and is payable whether or not you are living there.
How long it takes
A cash purchase of a ready unit normally runs four to six weeks from signed memorandum to new title deed, and the developer no objection certificate is usually the pacing item. With a mortgage, allow eight to ten weeks.
Documents to have ready
- Passport, and Emirates ID if you have one.
- Proof of funds, and a mortgage pre-approval letter if you are borrowing.
- A power of attorney, properly attested, if somebody will sign for you.
- For a company purchase, the trade licence and the board resolution.
Before you commit
Ask what the unit last sold for, what the same layout is currently letting for, what the service charge has done over three years, and whether the building permits short letting. If the answers are vague, that is information too.