Latest Price Ranges & Rental Yields in Ras Al Khaimah

In Ras Al Khaimah (RAK), the real estate market is on the rise in 2025, driven by its coastline, affordable luxury, and advancing infrastructure. The RAK is increasingly becoming a lucrative alternative to Dubai, thanks to high rental returns and attractive property costs, which are attracting more investors. This guide highlights the latest property price ranges, rental yields for properties in Ras Al Khaimah, and market insights for buyers and investors.

Current Price Ranges

According to recent market reports, property values in RAK, both apartments and villas, have been increasing sharply. The selling prices of apartments in RAK increased by almost 33% in 2024, while villa prices rose by about 35%, a trend projected to continue in 2025.

Here’s an overview of average property price ranges across the emirate:

Apartments in RAK:

• • 1-bedroom apartments cost around an average of AED 600,000 to AED 700,000.
  • 2-bedroom apartments are between AED 900,000 and AED 1.2 million.
  • 3-bedroom apartments can go from AED 1.8 million to AED 2 million, depending on the location.

Villas in RAK:

• • The 3-bedroom villas in communities such as Mina Al Arab and Al Hamra Village usually start at approximately AED 2 million.
  • Further upscale villas and waterfront developments may cost between AED 4 and 6 million, particularly on Al Marjan Island and Marassi.
  • For those interested in rentals, the market remains diverse and active:

Studio in RAK:

• • apartments begin at AED 20,000-25,000 annually.
  • 1-bedroom apartments for rent in Ras Al Khaimah, the average price amounts to AED 35,000 -45,000 annually.
  • 3-bedroom villas range from AED 120,000 to AED 180,000 a year, and exclusive beachfront villas could cost more than AED 300,000 a year.

This price elasticity allows both middle-income and luxury clients to have adequate alternatives in RAK's growing real estate market.

Rental Yields & Growth Trends

Rentals in Ras Al Khaimah properties are also among the highest in the UAE, with regular returns and strong tenant demand. According to current statistics, gross rental yields average 6-8% across most residential categories (regardless of area or property type).

Such key communities as Al Hamra Village, Mina Al Arab, and Al Marjan Island demonstrate excellent results:

• Al Hamra Village: With an average ROI of 6.8%, 1-bedroom apartments are in extremely high demand.
• Mina Al Arab: It has a reputation for high-end waterfront living, with a rental yield of 6% to 7%.
• Al Marjan Island: A notch above with a yield of 5.5%-6.5%, but high chances of capital appreciation owing to the continued development. 

There has also been growth in rentals over the last year. Apartments in Ras Al Khaimah property for rent rose by over 40% in certain prime localities, and in villas, by almost 28%. Such an upward trend can be justified by the growing number of expatriates, rising tourism, and the completion of various lifestyle communities that cater to both locals and foreign investors.

Explore the best areas to buy Ras Al Khaimah properties to complete your property journey with confidence and ease.

What This Means for Investors

Ras Al Khaimah offers a rare investment opportunity that is neither prohibitively expensive nor excessively costly, yet can deliver high rental returns and long-term appreciation. The thing that investors need to remember is as follows:

1. High Rental Demand:

As the short-run rental and tourism segments grow, both long-term and short-term residents and visitors are seeking waterfront lodgings.

2. Affordability Compared to Dubai:

RAK is cheaper to buy with the same lifestyle appeal - it will rank well with first-time investors or those who need diversification.

Click here to find out the ready vs off-plan properties in RAK!

3. Strong Yields:

Yields of 6–8% are very competitive within the UAE, compared to other, more saturated markets such as central Dubai or Abu Dhabi. 

4. Upcoming Infrastructure:

The tourism and hospitality industries in RAK are developing rapidly. The Wynn Al Marjan Island Resort and other current developments in Mina Al Arab are building confidence among investors in the country and driving demand for property.

5. Sustainable Growth Outlook:

Analysts predict further growth in property until 2025 due to RAK's well-developed economy, favorable policies for investors, and new master communities.

Example Investment Scenario

Suppose an investor buys a 2-bedroom apartment in the Al Hamra Village for approximately AED 950,000. Assuming the house for rent in Ras Al Khaimah is about AED 70,000 per year, then the gross rental yield is:

70,000 ÷ 950,000 = 7.36%

This yield aligns with the market average, offering a solid return without the volatility of larger, more expensive cities. When combined with expected capital growth of 5–8% annually, the total return profile becomes highly attractive for medium- to long-term investors.

Final Thoughts

Rising values for properties to rent in Dubai, strong rental growth, and investor optimism characterize Ras Al Khaimah’s real estate market in 2025. The emirate’s affordability, natural landscapes, and luxury waterfront communities make it one of the most promising property markets in the UAE.

Whether you’re seeking long-term rental income or capital appreciation, RAK offers a balanced portfolio opportunity. As infrastructure projects and hospitality developments continue to unfold, investors can expect sustained growth and increasing returns in the years ahead.