The emirate’s economy is on track to grow by an average of 4 per cent annually from 2024 to 2027, supported by strong performance across tourism, real estate, manufacturing and mining sectors.
“Ras Al Khaimah’s real estate market is firmly establishing itself as a premier investment destination, driven by luxury offerings and increasing investor confidence. The emirate’s commitment to becoming a top leisure destination solidifies its attractiveness for investors and developers alike,” Matthew Green, Head of Research MENA at CBRE said.
Despite the UAE’s Purchasing Managers’ Index (PMI) holding steady at 54.0 in April following a decrease from February’s 55.0, the nation’s Comprehensive Economic Partnership Agreements have boosted trade beyond AED 3 trillion in 2025, representing a 15 per cent year-on-year increase.
Local businesses face challenges from market competition, higher sales expenses and increasing salary costs linked to rising living and housing expenses across the Emirates.
Ras Al Khaimah residential market boom
The first quarter of 2025 saw substantial growth in RAK’s residential market, with average prices increasing by 39 per cent year-on-year.
Apartment values reached AED 1,684 per square foot, while villa values stood at AED 1,145 per square foot.
Over 1,300 off-plan residential sales transactions worth AED 2.4 billion were recorded, despite a minor decline in volumes from the previous quarter. The rental market showed strong performance with apartment rents rising by 20.8 per cent and villa rentals by 5.3 per cent.
Branded residences from Ritz-Carlton and Aston Martin are entering the market, expected to comprise 25 per cent of the upcoming freehold supply by 2030.
Approximately 4,800 branded units are planned for completion during this period, with a total of 19,300 additional units projected between 2025 and 2030.
Rising tourism and hotel revenue
RAK’s tourism sector began 2025 with increasing visitor numbers, recording 308,000 hotel guest arrivals in Q1—a 5.6 per cent increase from the previous year. International tourists accounted for 55 per cent of total visitors.
The hospitality sector reported a 6.9 per cent increase in total revenue to AED 418 million, driven by a 12 per cent rise in room revenue.
Occupancy rates reached record levels for the first quarter, while average daily rates and revenue per available room increased by 8.2 per cent and 8.4 per cent, respectively.
The emirate currently operates 56 hotels, with 28 new properties scheduled to open between 2025 and 2030.
Notably, 80 per cent of these new developments are 5-star establishments, including the recently opened Rove Marjan Island in April 2025 and the upcoming Wynn Resort set to launch in 2027.
