Bayut: Ras Al Khaimah Gains Momentum as Top Real Estate Hub

Ras Al Khaimah is steadily emerging as one of the UAE’s most promising real estate investment destinations, underpinned by rising property values, attractive rental returns and growing interest across both lifestyle and income-generating assets. According to new insights from Bayut, the UAE’s leading PropTech platform, the emirate is witnessing increasing investor confidence as demand strengthens across key residential communities.

Sales Trends Signal Strong Capital Appreciation Potential

Bayut’s latest data highlights notable price growth in several of Ras Al Khaimah’s established and emerging areas, pointing to solid long-term appreciation prospects.

Al Hamra Village has recorded one of the strongest performances in the villa segment, with average prices per square foot rising by nearly 42% in 2025, driven by sustained demand for waterfront living and resort-style communities. Villa prices in the area have climbed across all unit types, with five-bedroom homes commanding prices exceeding AED 14 million, reflecting strong interest from high-net-worth buyers.

In the apartment market, Al Hamra Village and Al Marjan Island have both seen double-digit price growth. Apartment prices per square foot rose by over 30% in Al Hamra Village and more than 21% on Al Marjan Island, supported by expanding inventory in developments such as Royal Breeze, Al Hamra Marina Residences and Bab Al Bahr Residences.

Al Marjan Island, in particular, continues to attract attention as a future-facing investment hub, with rising prices reflecting growing confidence ahead of the anticipated completion and opening of Wynn Marjan Island, which is expected to further elevate demand for both residential and hospitality-linked assets.

Rental Yields Highlight Income-Driven Opportunities

Beyond capital appreciation, Bayut’s data also points to compelling rental yields across several RAK communities, making the emirate increasingly attractive to yield-focused investors.

Apartment investments in Yasmin Village are delivering standout returns of over 12%, while Al Hamra Village and Al Marjan Island continue to offer yields of around 5.5% to 5.8%, balancing stable income with long-term value growth.

In the villa segment, areas such as Shamal Julphar and Julfar, although not freehold, are generating rental yields of up to 6.35% and 5.79%, respectively, underscoring the breadth of income opportunities available beyond traditional resort communities.

Rental demand has also remained healthy across popular neighbourhoods. Average apartment rents in Al Hamra Village and Al Marjan Island have risen by up to 14% and 10%, while Mina Al Arab has seen particularly strong growth in one- and two-bedroom apartment rents, reflecting rising tenant interest in waterfront and community-centric living.

A Market Poised for the Next Phase of Growth

According to Bayut, Ras Al Khaimah’s appeal lies in its evolving appeal: competitive entry prices, improving liquidity, solid yields and a clear pipeline of infrastructure and tourism-led development. The expansion of villa inventory in communities such as Falcon Island, where listings have increased significantly year-on-year, further indicates growing developer and investor confidence in the emirate’s trajectory

“Ras Al Khaimah is entering a new phase of growth, supported by rising property values, attractive rental yields and a clear long-term development roadmap,” said Haider Ali Khan, CEO of Bayut and CEO of Dubizzle Group MENA. “We’re seeing growing confidence from both end-users and investors, particularly in waterfront and master-planned communities that offer strong lifestyle appeal alongside solid investment fundamentals. With major developments coming online and demand steadily building, RAK is shaping up as a market with real depth and long-term potential.”

As large-scale projects near completion and demand continues to build, one can expect Ras Al Khaimah to strengthen its position as a smart, forward-looking investment destination within the UAE, offering opportunities across both capital growth and rental income strategies.