Property values in RAK stabilise

Dubai: Now may be the time to buy property in Ras Al Khaimah.

Property values have more or less remained stable in the last two quarters and in some instances have even firmed slightly.

"A lot of people are underestimating Ras Al Khaimah — it is an attractive and peaceful place where they can play golf until late and the area around the homes is much more spacious and at lower prices than in Dubai," said Ahmad Tuaima, branch manager for Engel and Völkers, RAK Al Jazeera.

Tuaima draws comparisons with the large 1,600 square metre plots, which have extensive sea views and offer complete privacy, going for Dh4 million to Dh4.5 million, with the smaller ones nearly double the price on Dubai's Palm Jumeirah. The estate agent, who makes about six to eight sales a month, has noticed an increase in interest since the beginning of the year.

"In May 2008, you could already sense prices were peaking and nothing was selling any longer," he said. "In 2009, people were just sneaking around in the market to see where prices were heading."

Townhouses in Al Hamra Village, which peaked at close to Dh3 million during the boom, are now drawing renewed interest.

Cheaper resale

"We're selling Phase Three from Dh700 to Dh13,000 a square foot, depending on the type of property," said Omar Obaid, business development manager, Al Hamra Village. "For the townhouses this means the second-hand resale is slightly cheaper than a brand new property."

He's happy to report that end-users - usually expatriates, who want a home to live in or lease out - have taken over from the speculators, who reigned back in 2006.

"To date, there's a shortage of housing in Ras Al Khaimah," said Dr Khater Massaad, CEO of the RAK Investment Authority (Rakia).