There are signs of a resurgence in Ras Al Khaimah (RAK), with diversification efforts spurring activity in the RAK real estate market in 2023.
Contract awards are gathering pace amid increasing investor confidence. Several projects have progressed just in the last three months.
Dubai Investments started construction of its $272 million (AED1 billion) Danah Bay project on Al Marjan Island in December. The project will have 209 villas, 128 apartments, and a 300-key four-star hotel operated by Millennium and Copthorne.
Earlier this month, local developer Al Hamra said the main contract award is imminent for its $272 million Falcon Island project at Al Hamra Village.
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In February, RAK Properties also awarded the main contract for phase 2 of the Marbella Villas on Hayat Island. The UAE-based Gulf Contracting will deliver the 89 two- to four-bedroom villa and townhouse contract.
Weeks after the award, RAK Properties launched phase 2 of Bay Residences on Hayat Island. It will have 324 studios and one- to three-bedroom units.
RAK real estate performance
The project launches and contract awards follow a period of sustained interest in the RAK real estate sector. Real estate sales, mortgages and waiver transactions worth $536 million (AED1.9 billion) were conducted in Q4 2023, data by RAK Statistics Centre shows.
The Q4 figure was lower than Q2’s $771.2 million (AED2.8 billion), the best quarterly performance in 2023. But it marked quarterly growth of 44 percent over the corresponding value of $370.4 million (AED1.4 billion) in Q3.
Investor interest also grew from Abu Dhabi during 2022. Aldar Properties made three acquisitions in RAK through its investment arm between February and July 2022.
This included the $112 million (AED410 million) purchase of Al-Hamra Mall; the $210 million (AED770 million) deal for the Rixos Bab Al Bahr hotel; and a $221 million (AED810 million) transaction for Doubletree by Hilton Resort & Spa Marjan Island.
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In November, parent group Aldar acquired a 40,000 sqm plot on Al Marjan Island from master developer Marjan. Aldar intends to combine the plot acquired from Marjan with existing land purchased as part of the DoubleTree acquisition to develop a residential community.
Abu Dhabi National Hotels also plans to develop a $272 million resort with 1,000 keys on Al Marjan Island. The company acquired a plot for the project in September.
Hospitality focus
The hospitality sector has typically been a major growth driver in RAK. But here too a renewal is anticipated as the city reorients to meet future traveller needs.
Stirling Hospitality Advisors said in December it expects hotel room stock in RAK to increase by over 70 percent in five years. New launches, including that of the much-hyped Wynn Resort, are likely to support the expansion.
US-based Wynn Resorts announced plans for its RAK real estate project in January 2022. The announcement coincided with RAK Tourism Development Authority’s (RAKTDA) launch of a gaming regulation department.
Estimated to be worth $2.5 billion (AED9 billion), the 1,000+ room Wynn resort will include a shopping mall, meeting and convention centres, and entertainment facilities, as well as a gaming area. It is due to launch in 2026.
Tourism development will be supported by institutional support for the sector. HH Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, recently announced plans to triple visitor numbers in RAK by 2030.
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“Tourism is our fastest growing industry,” Sheikh Saud said at the World Government Summit in Dubai in February, according to local media.
“We have grown 50 percent over four years. The emirate crossed 1 million visitors last year alone post-pandemic.
“We anticipate our visitor numbers to more than triple by 2030. That means we will double our hotel capacity by 2025. So we are very ambitious and very confident of delivering.”
