5600 units from 16 branded residential projects have been announced to be added by 2029 in RAK .
The latest edition of Stirling Hospitality Advisors’ RAK Investment Pulse report highlights the burgeoning branded residences sector in Ras Al Khaimah (RAK), underscoring its impact on the region’s real estate landscape. With a focus on luxury living, the report explores current trends, potential benefits for investors and developers, and the unique attributes that make branded residences appealing to homebuyers and investors alike.
Tatiana Veller, Managing Director of Stirling Hospitality Advisors, emphasized the transformative effect of branded residences on RAK’s real estate market, stating that these properties are increasingly becoming a critical component of high-end investment in the emirate. The report aims to inform stakeholders about the evolving dynamics of this sector and provide forecasts that can guide future investment decisions.
The growth of RAK’s real estate market is particularly notable in areas such as Al Hamra, Mina Al Arab, and Marjan Island. Recent projections suggest that from 2026 to 2029, an influx of 14,148 new residential units will enter the market, with branded residences constituting a substantial 40%, equating to 5,604 units. This substantial increase reflects a strategic response to the rising demand for luxury accommodations in the region.
Branded residences in Ras Al Khaimah (RAK) have seen a significant rise in popularity, particularly those associated with prestigious hotel brands such as Waldorf Astoria, Ritz Carlton, Nikki Beach, and Nobu. These affiliations enhance buyer confidence due to the established reputations of these renowned brands, which in turn can boost property values.
In addition to the well-known hotel brands, RAK is also attracting non-hotel luxury brands like Tonino Lamborghini, Elie Saab, Yoo, Missoni and Aston Martin, which are entering the market with their own unique offerings. These collaborations are beneficial as they appeal to high-net-worth individuals seeking not only luxurious living spaces but also a lifestyle that allows for a “lock-and-leave” convenience. This means that owners can enjoy their properties as vacation homes without the hassle of extensive maintenance, making them attractive options for those who travel frequently or prefer a more flexible lifestyle.
The report underscores a significant upward trend in real estate prices, attributing a remarkable 30% increase in 2022 to key developments such as the announcement of Wynn Resort and a projected 55% population growth by 2030. RAK’s advantageous strategic location, combined with its luxury appeal, sustained infrastructure investments, and robust government support, create a fertile environment for further price escalations in the property market. Forecasts indicate that secondary market prices could escalate to AED 4,000 per square foot by 2027, with projections reaching AED 4,500 by 2030. This trend reflects strong demand and investor confidence in the region’s future growth potential.
Additionally, Stirling Hospitality Advisors, a subsidiary of RAK Hospitality Holding, plays a pivotal role in this expanding market by managing over 3,500 hotel rooms across three countries and maintaining a diverse hotel and resort portfolio valued at over $1.25 billion. This extensive portfolio indicates a commitment to developing the hospitality sector, which is crucial in supporting the overall growth of the real estate market in RAK.
In summary, the combination of strong predicted population growth, ongoing luxury developments, and significant investments in infrastructure bodes well for the future of real estate in RAK, positioning it as a key player in the regional property landscape. Also, the combination of reputable hotel brands and high-end luxury labels positions RAK as a desirable destination for luxury real estate investment, catering to affluent buyers looking for quality, exclusivity, and convenience.
