Ras Al Khaimah Property Market Enters 2026 with Rising Prices, Tight Supply, and Expanding Demand

Real Estate

Ras Al Khaimah Property Market Enters 2026 with Rising Prices, Tight Supply, and Expanding Demand

Ras Al Khaimah’s (RAK) real estate sector is poised for continued momentum in 2026, building on the strong performance of the previous year. According to Metropolitan Premium Properties, the emirate is witnessing robust demand for both off-plan and ready homes, driven by limited coastal inventory and growing investor confidence.

Off-plan transactions are projected to increase by 15–20% this year, underpinned by RAK’s growing reputation as both a lifestyle and investment destination. The continued development of the emirate’s infrastructure, hospitality, and tourism sectors is contributing to a maturing property market, where buyers are showing increasing focus on quality, location, and long-term value.

“Ras Al Khaimah is moving into a more balanced and sustainable phase of growth,” said Maxim Novikov, Head of the RAK branch at Metropolitan Premium Properties. “While off-plan demand remains healthy, especially for branded and lifestyle-led developments, buyers in 2026 are becoming more selective. Limited supply in prime areas is supporting prices across both new and ready properties, and we’re seeing increasing competition for high-quality assets in established communities.”

Al Marjan Island, which led the emirate’s off-plan activity in 2024 and 2025, has now seen most of its inventory sold out. Consequently, demand is expected to shift toward new coastal developments such as the Marjan Beach area, where landmark hospitality projects like the Hard Rock Hotel are taking shape. Raha Island in Mina is also emerging as a growth hotspot, fueled by the upcoming Armani-branded villas alongside Four Seasons Hotel and Residences ENTA, as well as boutique waterfront projects.

The secondary market is also gaining traction as buyers turn to ready and near-completion homes. In 2025, property prices in communities such as Al Marjan Island, Mina, and Al Hamra Village saw significant appreciation—often matching or surpassing off-plan price growth, particularly in the villa and townhouse segments. This trend is expected to persist in 2026, with average prices forecast to rise by at least 20%, driven by strong end-user demand and a scarcity of premium stock.

Developers are adjusting their pricing strategies to maintain momentum. Flexible payment options—including lower upfront payments, extended instalment schedules, and post-handover plans—helped sustain sales in 2025 and are anticipated to continue into 2026. International investors are expected to favor these affordability-focused payment structures, while GCC buyers remain more lifestyle-driven, particularly attracted to beachfront properties for personal and holiday use.

With limited new off-plan opportunities in prime coastal zones, resale transactions are expected to increase, especially for waterfront apartments. Buyers seeking immediate occupancy, rental returns, or exposure to established resort communities are increasingly turning to the secondary market.

Rental performance is also strengthening. Yields averaging between 7% and 8%, particularly for villas and waterfront homes, are expected to edge higher in 2026 as demand outpaces supply. This growth is further supported by RAK’s flourishing tourism sector and the rise of short-term rentals. With annual visitor numbers projected to reach nearly five million, as much as 70% of Al Marjan Island’s and 40% of Mina’s residential stock could be used for short-term leasing, enhancing market liquidity and investor returns.

“The combination of tourism growth, globally recognised hospitality brands, and limited new beachfront supply is reshaping the market,” Novikov added. “In 2026, we expect both off-plan and secondary segments to perform well, but the real differentiators will be location, branding, and long-term fundamentals rather than the volume of new launches.”