Demand Exceeds Supply: Ras Al Khaimah Real Estate Market Set To Boom As Amid Housing Shortage
Ras Al Khaimah (RAK) is on the brink of a real estate boom, as a surge in demand and a looming housing shortage are set to drive significant growth and price increases over the coming years.
This outlook comes from Metropolitan Premium Properties (MPP), indicating that despite new developments, the supply of homes will not meet the rising demand, especially with the completion of the Wynn Gaming resort nearing in late 2025.
According to MPP, the current pace of development is insufficient to satisfy the burgeoning demand for housing in RAK. This year, the number of new residential units being delivered remains low, exacerbating the shortage. For instance, in 2024, only a few projects reached completion, delivering a mere total of 407 units across Marina Residence at Al Hamra and Marbela 2.
Looking ahead to 2025, the forecast is slightly more optimistic with the completion of two projects in Mina, introducing 648 apartments and 13 lofts in Bay Residence and an additional 146 apartments in Gateway 2.
Despite these upcoming units, the demand for properties in RAK far exceeds the projected supply. The scarcity of ready-to-move-in units has led to a significant increase in off-plan property prices, which have risen by an average of 15-20% in 2024, a trend expected to persist. Studios and one-bedroom apartments near the anticipated Wynn Resort are particularly sought after.
Maxim Novikov, Head of RAK branch at MPP, shared insights into the market dynamics, "Even with new projects underway on Marjan Island, RAK will face a shortage of available homes. Demand is expected to continue to outpace supply, making it an exciting market to watch in the near future. There has been strong demand, particularly for waterfront and beachfront properties in RAK with many new developments selling out quickly. Several projects are selling out during their launch phase or even before they are officially announced."
The drive for real estate in RAK is fueled by several key factors. The emirate's population is expected to nearly double by 2030, reaching 650,000 residents. The swift construction progress of the Wynn Resort is generating considerable interest.
Furthermore, Ras Al Khaimah's Economic Zone (RAKEZ) has become a magnet for global entrepreneurs, contributing to the increased demand for both residential and commercial properties. RAKEZ saw a record 66% increase in company registrations in 2024, welcoming 13,141 new businesses. Additionally, RAK's embracement of cryptocurrency trading and blockchain technology enhances its attractiveness as a place to live and invest.
While Marjan Island remains a focal point of development, MPP notes that other areas within RAK, such as Mina, Al Hamra, and RAK Central, are also expected to witness significant growth. This expansion offers substantial opportunities for real estate investors.
Novikov emphasizes the dynamic future of RAK's real estate market, "The real estate market in RAK is set for dynamic growth and entering an exciting phase. Investors and homebuyers alike should be prepared for rising prices and increased competition for the limited available properties."
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