Apartment prices on Al Marjan Island soared by 16.8% year-on-year in Q3 2025, marking the highest growth in Ras Al Khaimah’s residential areas, as per the ValuStrat Price Index (VPI). The island also experienced a strong 6.3% quarterly rise in capital values, highlighting its increasing attraction to investors and homebuyers.
Ras Al Khaimah’s broader apartment market reflected this upward trend, with an annual capital value increase of 15.5% and a 4.9% rise quarter-on-quarter, pushing the apartment VPI to 122.0 points from a base of 100 in Q1 2024. Al Hamra and Mina Al Arab also showed robust annual growth in apartment values at 14.8% and 13.6%, respectively.
Villas continued to appreciate, though at a slightly slower pace. The villa index hit 122.6 points, showing a 13.8% annual rise and a 3.3% quarterly increase. Mina Al Arab villas led with a 15.8% year-on-year gain, followed by Al Hamra villas at 12.1%.
Overall, the VPI for Ras Al Khaimah’s freehold residential market rose to 122.2 points in Q3, a 14.9% annual increase and a 4.3% quarterly rise. Average capital values for residential properties were Dh1.41 million, with apartments at Dh1.18 million and villas at Dh2.28 million. Per-square-foot, apartments were valued at Dh861, while villas were at Dh1,025.
Rental yields remained robust, with an average of 5.4% across the emirate’s freehold properties. Apartments matched this average at 5.4%, while villas slightly lagged at 5.2%.
The sales market in Ras Al Khaimah was largely driven by off-plan transactions, representing 84% of all residential sales in the first nine months of 2025. Over 4,100 off-plan units were sold, generating Dh8.2 billion in value, with an average transaction size of Dh2 million.
The ready home segment showed less activity, with only 776 units sold from January to September, totaling Dh909 million in value. The average transaction size for ready homes was Dh1.6 million. Apartments comprised 76% of these transactions, with villas accounting for the remaining 24%.
Despite strong capital value growth, overall transaction volumes declined year-on-year. Off-plan sales dropped by 20.5%, while ready home transactions fell by 15.7%, indicating more cautious market sentiment amid rising prices.
Al Marjan Island stood out for its price growth and premium pricing. Island apartments were valued at Dh1,127 per square foot, significantly higher than Dh890 in Al Hamra and Dh888 in Mina Al Arab. Mina Al Arab villas also commanded a premium, with average values reaching Dh2.4 million.
The data highlights a clear trend: investors and end-users are increasingly drawn to waterfront and lifestyle-centric communities. Al Marjan Island’s rapid value appreciation suggests strong demand, likely driven by ongoing infrastructure developments and its status as a luxury residential and tourism hub.
“Gross residential rental yields across RAK averaged about 5.4%, with apartments at around 5.4% and villas at 5.2%. This consistent investor interest is partly due to lifestyle-led demand for waterfront and integrated communities,” Saadain Lari, Director & Head of Marketing at ValuStrat, told Khaleej Times.
As Ras Al Khaimah continues to grow as a real estate hotspot, the Q3 2025 figures showcase a market in transition, buoyed by investor confidence in off-plan developments and a rising interest in high-end coastal living.
