Emerging Property Markets in the United Arab Emirates

By: Mark Burns

The most northerly of the emirates of the UAE, Ras Al Khaimah covers an area of approximately 1,700 square kilometres, and is without doubt the most scenic of the United Arab Emirates. With the dramatic Hajjar Mountains on one side, and the pure white beaches and azure blue Arabian Sea on the other, it's easy to see why an increasing number of people are looking to purchase property in Ras Al Khaimah.

With over $25 billion worth of foreign and domestic investment in Ras Al Khaimah since 2000, coupled with the growth of one of the emirates largest and most successful free zones, this increase in demand has come at both an individual and corporate level. Large companies, who previously only considered locating to the commercial centres of Dubai or Abu Dhabi, are now looking at Ras Al Khaimah as a unique and viable proposition.

Following in the footsteps of their highly successful neighbouring emirates of Abu Dhabi and Dubai, Ras Al Khaimah has invested heavily in its tourism industry in recent years, seeking to capitalise on the stunning natural beauty and unique features of the region. Recent figures for tourism levels in Ras Al Khaimah have suggested that this investment is beginning to bear fruit, with tourism figures increasing by nearly 220% between 2005 and 2006.

Understandably, the large increases in visitors to the emirate, coupled with the high levels of investment have resulted in a large increase in demand for property in Ras Al Khaimah. As such, the emirate has seen a number of pioneering new developments such as those at La Hoya Bay, Al Marjan Island and Mina Al Arab. All of these developments have proven commercially successful, with large numbers of individuals investing in these off-plan 'master developments.'

So why are people so keen to invest in property in Ras Al Khaimah? The primary reason for people wanting to buy property in the emirate is the low price of property in the emirate, especially when view in comparison with the prices of property in neighbouring Dubai. These higher prices currently being experienced in the Dubai real estate market are forcing investors to look further afield for good returns. With Ras Al Khaimah being only a 45 minute drive from the centre of Dubai, many people see the emirate as offering the desired tranquil lifestyle as well as offering good levels of access to the commercial hub that is modern day Dubai.

The second major reason for the increase in demand for property in Ras Al Khaimah is the good potential for high rental returns and capital gains. With the emirate offering a wide selection of people looking to purchase property, Ras Al Khaimah has developed a reputation for being a strong and stable rental market. These high, and consistent rental returns have resulted in a large number of local and international investors focusing their attentions on property in Ras Al Khaimah, and away from other emirates in the UAE.

Despite the recent increase in interest in Ras Al Khaimah real estate, considerable legislative efforts have been made by the authorities to maintain the natural beauty and features of this stunning emirate. What is certain is that this process of ecologically sound planning will prove beneficial in the future, as more people choose to surround themselves in the beautiful landscapes of Ras Al Khaimah.

Dubai Properties
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Dubai Properties