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CBRE Middle East, the global commercial real estate services firm, has published its full-year research report on the Ras Al Khaimah (RAK) real estate market for 2025.
RAK closed 2025 in a strong position, supported by stable economic conditions, growing investor confidence, and a series of large-scale developments changing the shape of the emirate. National GDP forecasts for 2026 saw a minor adjustment due to softer oil projections, but the UAE economy held firm, driven by non-oil sector activity and solid foreign direct investment (FDI). RAK has positioned itself as one of the fastest-growing investment destinations in the country, supported by a strong sovereign rating and record greenfield FDI figures.
The emirate continued to broaden its economic base through major industrial and tourism projects. New business license numbers rose, and the wider effect of large schemes such as the USD 5.2 billion Wynn Al Marjan Island development became clear. Low inflation, steady employment growth, and strong company formation — including more than 19,000 new businesses registered with RAKEZ alone — gave the real estate market a firm base across the residential, hospitality, and mixed-use sectors.
The residential market saw strong growth in 2025. Prime apartment sales prices reached AED 2,428 per square foot, the highest point in the current cycle, driven by capital appreciation in coastal areas including Al Marjan Island, Al Hamra, and Mina Al Arab. Villa prices rose to an average of AED 1,211 per square foot, with Al Hamra leading that growth. Across the market, average apartment prices rose 32% year-on-year and villa prices rose 11%. Rents followed the same direction, with apartment rents rising close to 25% over the year, supported by new supply in key communities, while villa rents held broadly stable with some growth in prime areas such as Mina Al Arab.
A series of high-profile project launches pushed the market further. Schemes including Mondrian Beach Residences, Jacob & Co Residences, and the forthcoming Janu Al Marjan Island continue to raise the profile of RAK’s luxury offer. The sharp rise in prime prices has created a growing gap between average sales values and average rental values, though this is expected to narrow as newly launched stock reaches handover in the coming years. Overall sales volume and total transaction value fell year-on-year, largely due to mid-market launches in newer districts such as RAK Central, but Q4 brought a clear recovery, pointing to the underlying strength of demand in the market.
The hospitality sector had another strong year. Visitor arrivals reached a record 1.36 million across 2025, split evenly between domestic and international visitors. RAK continued to grow its tourism reach, backed by wider air connectivity, new luxury hotel stock, and a fuller calendar of international events. Occupancy rose 4.6 percentage points, Average Daily Rate increased 6.6%, and RevPAR grew 11.5% year-on-year. The emirate’s hotel supply now stands above 9,000 keys, with more than 9,500 additional keys in the pipeline for 2026 to 2030, of which 92% will sit in the five-star category.
International operators continued to grow their presence in RAK. Accor and Hilton lead the current field, while new entrants including Aman Group and Wynn Resorts will add further depth to the luxury segment. Marriott expanded its pipeline through new announcements covering The Luxury Collection and JW Marriott projects. Some developments saw short delays, but the overall pipeline remains strong and signals continued confidence from global hospitality investors.
Matthew Green, Head of Research at CBRE MENA, comments: “Ras Al Khaimah’s real estate market continues to evolve at an unprecedented pace, supported by a combination of strong macroeconomic fundamentals, record levels of foreign investment, and a maturing property ecosystem. The emirate’s residential and hospitality sectors, in particular, have entered a new phase of growth driven by global brand partnerships, major tourism-led projects, and a deepening pool of international buyers. As the delivery cycle accelerates from 2027 onwards, we expect RAK to further solidify its position as one of the UAE’s most dynamic and future-ready real estate markets.”
