RAK quietly transforms into a hot investment hub

While a lot of attention has been focused on the huge growth and development of Dubai, Ras Al Khaimah (RAK) has been undergoing a quiet transformation that will see it become one of the most popular getaway spots in the region.

Located just over an hour's drive from Dubai, RAK is fast becoming a key player in the UAE real estate market. Investment wise, it's certainly hot right now. With several exciting developments under way, including the exclusive resorts of The Cove, La Hoya Bay and Mina Al Arab, investors are snapping up units at affordable rates in the hope of capitalising on the emirate's anticipated growth.

A major pull for RAK is the availability of freehold properties on the beachfront, something that has until now been limited in other emirates. Price wise, RAK offers good value for money when compared to some of its neighbours and with products to suit all budgets; it is emerging as an attractive option for both residential and commercial buyers.

Escaping the city

For end-users, RAK will provide an escape from city life; a place to unwind in comfort and enjoy the views, while the anticipated growth in tourism from such visitors is attracting investors to the market.

In particular, investors are looking to RAK with a view to targeting holidaymakers in the short-term rentals market.

There has been some heavy investment in tourism in the area, making short-term rentals an obvious choice for property investments.

There are some really good developments in progress and its location will serve it perfectly when attracting people from the UAE and wider region. Buyers can expect to receive higher returns on their investments through short-term letting but also have the added flexibility of being able to use their property as and when they choose.

For holidaymakers, the appeal of short-term letting an apartment or villa lies in the fact they have additional space to relax, with the added bonus of paying less than they would for a hotel.

On the commercial side, the emirate has undergone a fairly ambitious phase of development in a bid to catch up. This was essential to ensure it doesn't get left lagging behind in the current wave of growth being experienced across the region and has helped attract a number of businesses through industry, commerce and tourism.

In response to this, there has been a sharp rise in the number of commercial projects being announced with several offices, warehouses and retail outlets currently under construction to cater to the increasing demand from new businesses.

Free trade zone

The establishment of the RAK Free Trade Zone encouraged many businesses across several sectors to set up in the area, many of which were keen to take advantage of the competitive commercial rates and the more affordable cost of living for employees. Significant savings in operating costs is the biggest incentive to use when encouraging businesses to expand or even relocate out of Dubai.

Previously this would have been unheard of and while it still wouldn't be for everyone and I don't envisage a mass exodus from Dubai, such motivators along with the improvements to the transport infrastructure, suddenly make RAK a feasible option. It will be interesting to see how the younger child of the UAE grows up.

The most northern of the emirates, RAK offers some of the most beautiful scenery in the UAE and in spite of the recent developments; it has still managed to maintain a level of tranquility. As much as I love Dubai, it's always good to get away and recharge for a couple of days and for me, RAK offers the perfect opportunity to do just that.

The writer is managing director of Better Homes.