Ras Al Khaimah’s property boom interrupted by war, but analysts wager on advantages

Ras Al Khaimah real estate was set for a major boom in 2026, with price growth for off-plan properties forecast earlier to grow around 20%, and activity surging in recent months as buyers look at it as an attractive alternative to the squeezed real estate markets of Dubai and Abu Dhabi. Megaprojects like the USD 5.8 bn Wynn Resort have also helped support the long-term outlook for the emirate.

Sales prices rose 32% y-o-y last year, while rents climbed 25%, as record tourist numbers also drove momentum.

Now, the regional conflict has put a spanner in the works of more than one sector. The UAE’s energy and financial services sectors have taken a hit, and a similarly depressing trend in tourism could be throwing RAK’s ambitions into turmoil — especially as the emirate gets much of its demand from foreign investors and tourists.

Purchases have dipped since the war started, even though they were rising significantly in previous months, one broker who chose to remain anonymous told us. The emirate was seeing even more activity than popular hotspots like Dubai South at times, but since the conflict started, transactions across all emirates dipped sharply, and RAK was not spared, they added.

Others chalk this up to a typical seasonal dip rather than any structural shift away from the emirate, real estate broker Mohamed Gamal told EnterpriseAM. “The current situation has made buyers more cautious, but demand remains strong because RAK offers higher rental yields and lower entry costs compared to more saturated markets… Before the conflict, demand was peaking.”

The main problem is foreign investor demand. International investors could hold back on purchases, but this would likely point to a “postponement rather than a permanent reduction in demand,” Cavendish Maxwell research manager Ali Siddiqui told us.

International investors make up 70% of sales at RAK Properties, the largest real estate developer in the emirate, CEO Sameh Muhtadi told AGBI recently. He expects that many people who are “familiar with the UAE” will realize that this is a “temporary glitch,” and that demand from the local market will continue to remain resilient.

A bigger focus on the local market’s needs could help: “We’re diversifying. That’s a healthy direction. Our branded apartments will continue to be offered to an international market, but we’re also going to address the local market,” he said, noting that one of their biggest current projects is a “huge” landbank earmarked for family homes for UAE residents.

As for new projects? “Developers and investors may reassess market conditions, demand forecasts, and financial feasibility before committing,” Siddiqui told us. RAK Properties, for one, hit pause on new launches for now, delaying them until May with the hope that the situation will be clearer then, AGBI quotes him as saying.

The good news is…

“The fundamentals that made RAK a hotspot haven’t changed,” Gamal told us. “The unique landscape and investor friendly 100% ownership laws are still the backbone of the market,” adding that the conflict is “temporary noise,” rather than something that would cause a 180 re-think. Siddiqui also sees “affordability [continuing] to be the emirate’s primary competitive advantage,” saying that this value proposition hasn’t changed.

Its low prices will likely continue to work in its favor, with some shifting their attention to the emirate recently, Gamal said. “Now, the market belongs to savvy, long-term investors. While some are selling below market price due to fear, [advantage] hunters are stepping in to secure the best [agreements],” he added.

Work on megaprojects — a key pillar of RAK’s diversification drive — is also pushing ahead: Gamal flagged the importance of the bn USD mega projects like the Wynn Al Marjan Island resort, construction work for which paused briefly at the start of the conflict, but was back on track soon after.

The outlook is positive — provided that stability returns soon. “If stability returns relatively quickly, RAK’s real estate sector is well-positioned to absorb any near-term challenges,” Siddiqui said.

As of a few weeks ago, there were no other reports of tourism-linked real estate developments being paused, Siddiqui told us, adding that hotel projects with funding already in the pipeline and spades already in the ground were unlikely to be put on hold.

The macro outlook backs RAK for now: A few weeks into the war, S&P Global affirmed the emirate’s rating at A/A-1 with a stable outlook, flagging that its low debt to GDP ratio and strong net asset to GDP ratio provide buffers to absorb shock. Siddiqui sees “RAK’s diversified source markets, value positioning, and status as a global destination for tourism” as supporting a recovery once conditions stabilize.

Those three sectors make up 60% of the emirate’s GDP, meaning that any further disruption, particularly to the Wynn resort, which is slated to make up 42% of RAK’s total GDP, would constitute a serious speedbump in the emirate’s diversification gameplan.

For now, the tug of war to reinstill investor confidence is still ongoing, with tourism numbers down and UAE authorities rolling out measures to buoy the sector. In RAK, it is no different, with the market waiting to see whether the emirate can retain its title as what Gamal called “the silent beneficiary,” as “smart money moves away from saturated markets like Dubai and Abu Dhabi toward safer, higher-growth [avenues].”