Where properties are selling fast in Ras Al Khaimah: Top 3 picks

Dubai: Ras Al Khaimah’s property market is heating up in 2025. Prices are rising, returns are shifting, and off-plan sales dominate the scene. If you’re thinking about investing, renting, or even moving, here are key takeaways from ValuStrat’s H1 2025 report.

RAK’s residential ValuStrat Price Index (VPI) reached 117.2 points in Q2 2025. That’s a 3.2% rise quarter-on-quarter and a 13.8% surge year-on-year. Apartments slightly outpaced villas during the first half of the year. For homeowners, this means properties bought just 12 months ago have gained significant value.

1. Mina Al Arab

Among communities, Mina Al Arab villas were the star performers with a 20% jump in value compared to last year. Apartments here also posted double-digit annual gains. For buyers looking at coastal lifestyle developments, Mina Al Arab is proving to be one of RAK’s strongest bets.

2. Al Hamra

Villas in Al Hamra rose by 10.8% year-on-year, while apartments also recorded healthy double-digit growth. Known for its golf course and marina lifestyle, Al Hamra continues to attract both residents and investors, making it one of the emirate’s most in-demand communities.

3. Al Marjan Island

Apartments in Al Marjan Island also recorded double-digit gains. With major upcoming developments and increased tourist attention, the island is cementing its position as a hotspot. For end-users, it’s an area to watch closely as infrastructure and amenities expand.

Apartments ROI over villas

Rental yields are telling a different story compared to Dubai and Abu Dhabi.

• Apartments: averaging 5.7% gross yields

• Villas: just 2.3%

That makes RAK one of the few UAE markets where apartments outperform villas on rental returns. For landlords and investors seeking steady income, apartments currently make more sense.

Off-plan dominates sales

If you’re hunting for ready homes, supply is tight. In the first half of 2025:

• 85% of sales were off-plan, with over 3,000 units sold worth AED 6 billion.

• Ready homes made up just 550 transactions worth AED 646 million, and 75% of these were apartments.

Buyers are clearly betting on future projects, suggesting confidence in RAK’s long-term growth.

Bottom line for UAE residents: RAK is no longer just a quieter alternative to Dubai. It’s becoming one of the UAE’s fastest-growing markets, especially for apartments in Mina Al Arab, Al Hamra, and Al Marjan. Whether you’re an investor chasing yields or a family looking for lifestyle communities, the northern emirate is worth a closer look in 2025.