Early investors can double their investments–Are investments around Wynn Casino on Al Marjan Island truly a lifetime opportunity?!
The Wynn Al Marjan Island project in Ras Al Khaimah (RAK) is generating considerable excitement among investors, with projections suggesting that early investors could see returns exceeding 100% on their initial deposits. This ambitious $3.9 billion development, set to open in 2027, marks the Middle East’s first licensed casino resort and is expected to significantly impact the local real estate market.
Investment Potential
- Asad Khan, CEO of Invest Dubai Real Estate (IDRE), highlighted that investor who place a 10% deposit during the pre-launch phase may double their investment when property prices increase at the official launch. For example, A one-bedroom apartment currently offered at AED 1,950 per square foot is expected to be listed at AED 2,220 per square foot after launch.
- However, while the allure of a 100% return is compelling, experts urge caution. Maxim Novikov, Head of RAK branch at Metropolitan Premium Properties, emphasizes that informed decision-making is crucial for true investment success. The approval of gaming in RAK and the licensing of Wynn are positive indicators for the project’s viability.
- Several factors are driving exceptional returns in Ras Al Khaimah, including government commitment to enhancing infrastructure, introduction of long-term residency visas, and attractive incentives for foreign investors, according to property experts.
- Studio, one-bedroom, and two-bedroom units will yield the highest returns. These property types will be highly sought after by both tourists seeking holiday rentals and the growing workforce needing long-term accommodation.
- Research of existing Casino markets reflect properties located near major casino resorts have historically experienced strong price appreciation.
Market Dynamics and Growth
The introduction of the casino is seen as a catalyst for growth in RAK, which is benefiting from government initiatives aimed at enhancing infrastructure and supporting luxury tourism. Nishant Deshmukh of Sugee Group noted that RAK is transforming into a prime investment destination, with expected visitor numbers projected to rise to 3.5 million annually by 2030. This surge in tourism is anticipated to create a supply-demand imbalance in the real estate market, favoring investors.
Transaction volumes in RAK are already experiencing unprecedented growth, with a reported 118% increase in total transactions from 2023 to 2024, amounting to AED 15.08 billion. This trend suggests a robust interest in the local real estate market, driven by the impending casino and associated developments.
Concerns and Considerations
- Despite the optimism, some analysts express caution regarding potential oversupply in the market, given that around 20 residential developments are planned, including 900 units managed by IDRE.
- However, some experts believe that the region could face a shortfall of hotel and residential units as demand continues to outstrip supply.
- While the potential for returns is promising, “investors should be cautious and focus on the long-term outlook rather than chasing short-term gains.”
Broader Implications
The Wynn Al Marjan Island project could influence property values in RAK similarly to how major casino resorts have impacted markets in Macau and Singapore. While the immediate “casino premium” may be lower in RAK, as the destination establishes itself as a hub for gaming tourism, property values are expected to appreciate.
In conclusion, while the potential for high returns on investments in the Wynn Al Marjan Island project is significant, prospective investors should weigh the opportunities against possible risks and market dynamics. Informed decisions and a focus on long-term growth will be essential for maximizing investment success in this evolving market.
Overall, RAK is evolving into a prime investment destination, backed by strong government initiatives, luxury tourism, and infrastructure growth.
