Ras Al Khaimah: Demand for offices in Ras Al Khaimah's Free Zone is having a positive knock-on effect on residential letting, most notably in the Al Hamra freehold development. Prospective tenants are mostly those who are setting up businesses or already working in the free zone across the road.
More often than not, they are looking for a short-term deal for their residential needs. And when they are confident their business is up-and-running they go for long-term contracts.
"Some don't want the commitment yet and are looking for smaller units and then upgrade to larger ones," said Ahmad Tuaima, branch manager for Engel & Volkers, RAK Al Jazeera. "Some even end up looking to buy."
Tenants who have been around for longer know the market and tend to look closer at the price. A furnished studio attracts a rent of Dh4,000 to Dh4,500 a month in the Marina or Golf Apartments blocks, the latter being closer to the Al Hamra Mall. A furnished one-bed with a golf course view can fetch Dh60,000 a year in rental, while an unfurnished apartment goes for around Dh45,000.
Scaling up, a three-bedroom townhouse fetches between Dh90,000 to Dh110,000.
A sea-type view villa without landscaping can only get Dh180,000 a year in rent, but an upgraded property can fetch as much as Dh250,000 a year, advises Tuaima.
Indeed, the rental for a villa varies depending on the view — golf course, sea or neighbourhood. Some four-bedroom villas are asking for around Dh175,000 a year, while the five or six-beds are around Dh200,000.
The master developer, Al Hamra Real Estate Development, kept some of the units or is renting them out on behalf of owners who have fallen behind on their instalments. This way they still get to own the property they bought once all the payment arrears are cleared.
"We don't have more than 10 per cent defaulters and are giving them facilities," said Omar Obaid, business development manager, Al Hamra Village. "Consolidation is another option."
Al Hamra leases studios for Dh25,000 to Dh27,000, one-bedroom apartments for around Dh50,000 and two-beds for Dh55,000 to Dh65,000.
Rents have been stable in RAK's in traditional residential locations. According to Asteco's latest report on the northern emirates, rental rates remained pretty much the same during the second quarter compared to the first in the non-master planned developments. A studio can be snapped up for as low as Dh18,000 to Dh22,000, and between Dh40,000 to Dh48,000 for a three-bedroom apartment.
"Tenants looking for the cheapest drag down the market," said Tuaima. "There are a lot of brokers around — we're a small lake with a lot of fishermen."
This broker gets 25 to 30 rental requests a month, of which four or five go through.
Wander over to areas like Al Hamra and, most recently, Mina Al Arab — where over 100 villas have just been handed over, and the picture changes.
"The units are more expensive in a master-planned development, primarily because of the security, community living, facilities and amenities within the development," said Judy Lam, regional research manager at Asteco Property Management.
