Dubai: As in Dubai, Aldar Properties has struck bull's eye with its first project launch in Ras Al Khaimah, providing more evidence that the emirate is experiencing an unprecedented offplan boom.
The Abu Dhabi developer has confirmed first phase of its Nikki Beach Residences project has sold out, totalling 420 beachfront units and with a combined sales value of Dh1 billion. The project is located on Al Marjan Island.
The sales reponse 'validated our long-held view that the market is primed for a branded residential product that facilitates short-term stays' said Rashed Al Omaira, Chief Commercial Officer at Aldar Development. "We are creating a community proposition that provides residents and guests with resort-like barefoot living.
"The success of Phase 1 indicates that our customers truly believe in the concept and Ras Al Khaimah as an investment destination." After the response to Phase 1, Aldar went ahead and released a further 150 homes for sale. (The developer recently made its first foray into Dubai real estate, launching the Haven and whose first phase too hit an instant sold out status.)
As we unveil Phase 2, we anticipate continued interest from buyers who seek a unique blend of luxury and beachfront living
Al Marjan Island's riding the wave
Ras Al Khaimah's property market sure is hitting sweet spots, with home prices on Al Marjan Island recording increases of 35-50 per cent since the start of the year. Apart from Aldar, Emaar too has a new project there.
In fact, potential property investors have been getting mailers and calls from estate agents talking about the multiple luxury offplan projects coming up in and around the landmark Wynn Resorts (with 1,500 rooms and an opening date in 2027. The project marks a key milestone in the UAE's hospitality industry).
We are facing an unprecedented demand for real estate in Ras Al Khaimah. Another spike in investment activity in the sector is expected in 2024 as there will likely be a lot of pent-up equity looking to find a home.
Interestingly, Aldar said that more than 80 per cent of buyers in Phase 1 of Nikki beach Residences were first-timers investors with the developer.
"Some of the newer launches on Al Marjan are carrying price tags at or around Dh3,000 per square foot," said Sameer Lakhani, Managing Director at Global Capital Partners. "And with the interest in RAK and Al Marjan Island specifically, the vast majority of sales have been offplan and snapped up by investors from around the world.
"It has become evident that Al Marjan Island is set to become a global landmark destination."
Emaar comes with the Address
At Al Marjan, Emaar's project bears the 'Address' branding and with units from Dh2 million.
"The Wynn project has helped draw a lot of attention to Ras Al Khaimah and Al Marjan, and for developers this is clearly the time to make their presence felt," said an estate agent. "In a short span, the destination has emerged as one of the most prominent offplan locations in the UAE - so, with Aldar and Emaar present, it becomes more so."
"The hospitality and residential sectors exhibit substantial growth potential, underscored by multiple sellouts, including for our pioneering developments in Mina Al Arab, complemented by clarity on interest rates and a robust GDP expansion. Notably, there is a pronounced demand for hospitality and beachfront luxury residential developments in RAK.
"The ‘nature emirate’ is steadily bulking up its tourism and hospitality segment. More regional investors and funds are beginning to underwrite Ras Al Khaimah as a market as part of a wider investment strategy.”
- Sameh Muhtadi, CEO, RAK Properties.