What a 39% Rise in Ras Al Khaimah House Prices Means for Tenants

Ras Al Khaimah’s Property Boom: What It Means for Tenants

Ras Al Khaimah (RAK) has made headlines in 2025 after the emirate’s property market logged an eye‑watering 39 per cent jump in average house prices year‑on‑year. Demand for homes has been turbo‑charged by brand‑new luxury projects and record tourism, transforming this once‑quiet emirate into one of the UAE’s hottest investment destinations. But while investors celebrate, the boom has real consequences for tenants looking to find or renew a lease.

Understanding the Real Estate Boom

Luxury brands and branded residences

Premium developers like Ritz‑Carlton, Aston Martin and Wynn Resorts have flocked to RAK, delivering more than 5,600 branded residences by 2030 – a quarter of the emirate’s entire freehold pipeline. Projects such as Sora Beach Residences and the Wynn Al Marjan Island Casino Resort promise generous rental yields and have captured the attention of global investors. These high‑end communities are pushing up sale prices and, in turn, rental rates.

Tourism growth fuels demand

The emirate’s ambitious Tourism Vision 2030 aims to welcome 3.5 million visitors every year within the decade. This target is supported by huge investment in hotels, resorts and adventure attractions on Al Marjan Island and Jebel Jais. In the first half of 2025, tourism revenues increased by nine per cent and visitor arrivals rose six per cent. With more than half of guests coming from overseas, demand for short‑term holiday rentals and serviced apartments is booming. Hotel guest arrivals are rising steadily, helping push rental yields on branded residences to the 8–9 per cent range.

Infrastructure and affordability advantages

Despite the surge, RAK still remains 40–45 per cent more affordable than Dubai, attracting families and first‑time buyers. Entry‑level apartments start around AED 600 per square foot and beachfront villas begin at about AED 1.2 million. Investors enjoy tax‑free ownership, Golden Visa incentives and improving connectivity thanks to projects like Etihad Rail and upgrades to RAK International Airport. These factors encourage more buyers and landlords into the market.

Impact of Rising Prices on Tenants

Rental rates on the rise

The property boom has cascaded into the rental market. According to recent market data, residential rents increased 13 per cent in early 2025. On Al Marjan Island – home to many of the luxury developments – apartment rents have climbed dramatically over the last two years; median annual rents jumped from around AED 40,000 in April 2023 to more than AED 64,000 by April 2025. Such increases strain household budgets, especially for long‑term tenants.

Supply, demand and future outlook

Despite plans to deliver 19,300 new residential units by 2030, demand continues to outpace supply. Off‑plan sales remain strong, with AED 2.4 billion worth of transactions recorded in the first quarter of 202. As investor appetite grows and tourism keeps expanding, experts expect prices to continue rising – some forecasts even predict they could double by 2026. Tenants therefore face the prospect of higher rents for years to come.

Tips for Tenants in a Hot Market

Budget wisely and plan ahead

Factor potential rent increases into your budget. If you are up for renewal, start negotiations early and consider locking in a longer lease to secure today’s rates. Keep in mind that landlords typically require a 5 per cent security deposit and cheques spread across the year, along with an AED 25 municipal registration fee – plus five per cent of the lease amount – to register your tenancy contract with RAK Municipality.

Explore emerging neighbourhoods

While coastal hotspots like Al Marjan Island and Mina Al Arab command premium rents, inland communities offer better value. Established suburbs such as Al Dhait, Khuzam and Al Refaa still provide spacious villas and apartments at more approachable prices. These areas also benefit from the emirate’s improving infrastructure and growing amenities.

Consider off‑plan opportunities

Buying off‑plan might make sense if you plan to stay long term. Entry‑level apartments are relatively affordable and new developments often include flexible payment plans. With prices projected to rise, securing a property now could save on future rent or yield returns if you decide to rent it out.

Conclusion

Ras Al Khaimah’s real estate boom is reshaping the rental landscape. Luxury brands, booming tourism and major infrastructure upgrades are driving a market where prices are rising quickly and competition for homes is fierce. Yet the emirate remains more affordable than Dubai, and proactive tenants can still find value by planning ahead, exploring diverse neighbourhoods and considering early investments. Understanding these trends will help you navigate the market and secure a rental that suits your lifestyle and budget.

Sources

• Prelaunch article summarising CBRE’s 39 % price surge, branded residences and tourism growth.
• Prelaunch article on affordability advantages and infrastructure improvements.
• Prelaunch article on market outlook and planned new units.
• Gulf News report detailing tourism revenue growth, visitor increases and residential rent and sales value rises.
• Khaleej Times data on rapid rent increase on Al Marjan Island.