Ras Al Khaimah Real Estate Market Soars in Q3 2025: Al Marjan Island Drives Apartment Price Increases

Introduction

In the third quarter of 2025, the real estate market in Ras Al Khaimah (RAK), United Arab Emirates (UAE), experienced significant growth. Notably, apartment prices on Al Marjan Island, an artificial island, surged and spearheaded the overall market growth. This article, based on the latest ValuStrat Price Index (VPI), provides an easy-to-understand explanation of the trends in Ras Al Khaimah's real estate market for beginners.

Ras Al Khaimah Real Estate Market Overview: Q3 2025

In Q3 2025, the overall ValuStrat Price Index (VPI) for Ras Al Khaimah's freehold residential market reached 122.2 points. This represents a year-on-year increase of 14.9% and a quarter-on-quarter increase of 4.3%. The market's baseline is set at 100 points in Q1 2024.

During this period, the average capital value for residential properties was AED 1.41 million. The breakdown is as follows:

• Average Apartment Price: AED 1.18 million
• Average Villa Price: AED 2.28 million

In terms of price per square foot, apartments were valued at AED 861 and villas at AED 1,025.

Apartment Market Trends: Al Marjan Island Takes the Lead

The apartment market showed particularly robust growth, with capital values across Ras Al Khaimah increasing by 15.5% annually and 4.9% quarter-on-quarter. Al Marjan Island was the primary driver of this growth.

Key Area-Specific Annual Apartment Price Increases

• Al Marjan Island: 16.8% increase (6.3% quarter-on-quarter increase)
• Al Hamra: 14.8% increase
• Mina Al Arab: 13.6% increase

Al Marjan Island not only leads in price appreciation but also in price levels, significantly outperforming other areas. Apartments on the island were valued at AED 1,127 per square foot, considerably higher than Al Hamra (AED 890) and Mina Al Arab (AED 888).

Villa Market Trends

The villa market also maintained steady growth, though at a more moderate pace compared to the apartment market. The villa price index reached 122.6 points, recording a 13.8% annual increase and a 3.3% quarter-on-quarter increase.

By area, villas in Mina Al Arab showed the highest annual growth rate at 15.8%, followed by villas in Al Hamra at 12.1%.

Off-Plan Properties Dominate the Market

During the first nine months of 2025, off-plan transactions accounted for a remarkable 84% of residential sales in Ras Al Khaimah. Over 4,100 off-plan properties were sold during this period, totaling more than AED 8.2 billion.

In contrast, transactions for completed properties were more subdued, with 776 units sold for a total of AED 909 million. This data indicates a strong interest from investors and homebuyers in new, developing projects.

Key Points for Investors

Ras Al Khaimah's real estate market offers numerous attractive elements for investors.

• Stable Rental Yields: The average rental yield for residential properties across the emirate remains healthy at 5.4%. Apartment yields are also 5.4% on average, while villas offer 5.2%.
• Demand for Waterfront Properties: There is exceptionally high demand for communities offering a waterfront lifestyle, such as Al Marjan Island. Infrastructure development and its positioning as a luxury residential and tourist hub further enhance its value.

Summary

In Q3 2025, Ras Al Khaimah's real estate market demonstrated strong growth, led by Al Marjan Island. Robust demand for off-plan properties, in particular, has driven the market, indicating high investor confidence. With ongoing infrastructure development, Ras Al Khaimah, especially its upscale coastal communities, is expected to further evolve as a real estate hotspot.

Reference Article

Khaleej Times: Al Marjan Island leads Ras Al Khaimah’s soaring apartment market in Q3 2025