Why Ras Al Khaimah is the next big thing for property investors in UAE

Dubai: Ras Al Khaimah is setting to be the next big co-living and co-working destination in the UAE as the emirate attracts younger property investors or those wanting to make it their base. The demand for co-living/co-working options will also rise as more companies decide to shift their backend operations to free zones in Ras al Khaimah.

This trend, still very much in the formative stages, shows Ras Al Khaimah’s attraction as a property investment is expanding beyond families with a median age of being in the 40s or early 50s to taking in more younger property owners or residents.

“The bulk of the buyers we are seeing for our RAK project are in their mid-to-late 30s,” said Bass Ackerman, founder of Hive, which has built co-living spaces in Dubai’s JVC and has just launched in Ras Al Khaimah with the ‘Enta’ brand. “The Enta product is very much aimed at our core audience which consists predominantly of professionals in their 30s.

“We also provide buyers with an option to furnish the units for them and should they wish to utilise it as an investment property.”

It was in Dubai that the co-working or co-living concepts took off, first helped by more global tech and new media companies setting up or widening their operations in the emirate. This really took off in the immediate post-Covid years and continues to run strong, according to property market sources. (Co-living services allows individuals to share an apartment but they must enter into separate lease terms with the developer or landlord.)  

Now, the same dynamics are seeding the RAK property market. Apart from more companies getting licensed at the emirate’s free zones, the other big development is the launch by the government of ‘RAK DAO’, a free zone hub exclusively meant for businesses operating in the crypto and other virtual asset services space. (Dubai and Abu Dhabi already offer licenses for virtual asset companies through VARA and ADGM, respectively.)

Now, when RAK DAO builds up scale, that’s when the co-working and co-living properties really come into their own in the emirate. Again, this is also about drawing in a new and younger skewing residents also.

“Ras Al Khaimah has built its reputation as ideal for second- or retirement homes, as well as weekend getaways through destinations such as Al Hamra Village,” said a developer. “Then, you have all the hotels being built with Wynn Resorts' and its casino as the flagship future attraction.

“This along with RAK DAO creates the need for more shared spaces, whether to work or live.”

Or both, as the case may be. At Enta, which is located on Hayat Island, the developer will create both co-working and co-living options within the same address. The one-bedroom units are from Dh1.65 million, with the price per square foot from Dh1,900.

“Ras Al Khaimah has a few traditional business centers but as far as we’re aware, this is the first purpose-built co-working offering,” said Ackerman. “What makes this exciting is not only the scale of the offering (with more than 200 workspaces) but the fact that it is integrated within a development that offers a flexible living solution.

“This combination of flex-living, flex-work and good F&B is compelling for younger professionals.”