Al Marjan Island Leads RAK Apartment Market Growth in Q3 2025

The apartment segment on Al Marjan Island emerged as the standout performer in Ras Al Khaimah during Q3 2025, with year-on-year capital value growth of 16.8%, the highest among all major zones in the emirate. Quarter-on-quarter, values rose by 6.3%, signalling strong ongoing investor and end-user demand.

Broader market momentum

Across Ras Al Khaimah’s freehold residential market:

• The apartment Value Price Index (VPI) rose to 122.0 points, marking a 15.5% annual jump and a 4.9% quarterly increase.

• Villas saw more modest gains: a 13.8% annual increase and 3.3% quarterly growth, raising the villa index to 122.6 points.

• The overall residential market index reached 122.2 points — up 14.9% year-on-year and 4.3% for the quarter. The average property value was Dh 1.41 million; apartments averaged Dh 1.18 million, villas Dh 2.28 million.

Yield and transaction insights

Gross rental yields across the emirate averaged 5.4%, with apartments matching that figure and villas slightly lower at 5.2%. Off-plan transactions dominated sales activity — representing 84% of all residential sales in the first nine months of 2025, totalling over Dh 8.2 billion from more than 4,100 units sold.

Strategic implications for investors

• Al Marjan Island’s premium pricing — apartments valued at Dh 1,127 per sq ft, compared with Dh 890 in Al Hamra and Dh 888 in Mina Al Arab — underscores its status as a lifestyle-led investment hotspot.

• While volume of transactions declined (off-plan sales down 20.5% and ready homes down 15.7% year-on-year), value growth and yield stability indicate investor confidence in long-term fundamentals.

Outlook

As investors increasingly prioritise lifestyle-driven, waterfront residential assets outside Dubai’s saturated zones, Ras Al Khaimah — and specifically Al Marjan Island — is emerging as a high-potential alternative. With solid price growth, attractive yields and predominantly off-plan activity, the emirate presents a compelling case for medium- to long-term investment.