Real Estate in RAK
Population in Ras Al Khaimah has grown at 4.6 per cent over the 2000-2006 period. In addition, almost 50 per cent of the Emirate’s population is under the age of 19. As Dubai is witnessing a rapid increase in the prices of real estate with a brisk growth in its population and economy, demand for residential, office as well as industrial properties in other Emirates close to Dubai. Ras Al Khaimah, with its proximity to Dubai and a good connectivity with the latter through the newly completed Emirates Highway, offers a very good alternative to staying in Dubai. A healthy growth of demand for real estate in Ras Al Khaimah can be expected during the coming years.
Ras Al Khaimah’s government is also aiming at increasing the contribution of the tourism sector to the economy with a number of tourism projects in the pipeline. This indicates that the emirate is likely to witness a robust demand for building and construction activities in the medium-term. Thus, our outlook for the building, construction and real estate sector in Ras Al Khaimah is positive.
In November 2005 the RAK government issued a decree permitting expatriates to enjoy freehold ownership of property developed in selected developments in Ras Al Khaimah. The legislation was preceded by a grant of 4.6 million square metres of strategically located land to RAK Properties PJSC to be used in proposed residential and industrial projects.
Projects worth over AED17bn (US$4.7bn) are currently in various stages of development across the Emirate. The projects span residential, commercial and tourism developments.
In January 2006 RAK Properties started the works on the construction of the AED10 billion (US$2.72 billion) Mina Al Arab project in Ras Al Khaimah. Spread along a 3-kilometre beach, the project is scheduled for completion in 2011 and will include a selection of five-star resort hotels, including two ecotourism resorts, 3500 residential units, a cluster of 386 villas and six gated communities.
RAK Properties has also launched, 'Julfar Towers', a residential and commercial development in the centre of Ras Al Khaimah city, which is to be ready in 2008, and it is responsible for Mangrove Islands, a low-rise residential and commercial building development. A community area complete with a golf club, 2000 luxury villas, schools and shopping malls is also being planned for an area on Emirates Road and should be completed in 2009. The foundation stone for the AED850 million (US$231.60 million) Wow RAK theme park project on 120 acres in the Khor Qurm region was also laid in August 2006.
Another major project under way is Al Hamra Village, an 1800-unit residential complex with a shopping mall and two hotels, one of which will be of seven-star standard. The five-star Al Hamra Fort Hotel and Beach Resort, already established in the area, will be part of the complex, along with the brand new Al Hamra Palace Hotel. The latter is due to open at the end of 2007 and will offer 400 rooms, 37 suites, a golf course and five restaurants.
Industrial and office properties are offered in Ras Al Khaimah Free Trade Zone and in the free zone operated by RAKIA, Ras Al Khaimah Investment Authority.
Ras Al Khaimah Free Trade zone offers land plots as well as rental halls for industry and logistics in two parks, the Industrial Park in the Khur Khowair industrial area near the Saqr Port north of Ras Al Khaimah city and in the Technology Park located south of the city in direction of Sharjah and Dubai. The Al Ghail Industrial Park is currently under development. There are plans to build RAK Logistics City, which is planned to have 1 million square metres of logistics space.
Modern office facilities are available in four office buildings of Ras Al Khaimah Free Trade Zone. The fifth 18,000 square metre office building is to be completed in late 2008. Other modern office facilities are under preparation, both by the RAK Free Trade Zone and other developer, e.g. RAK Properties´ Julfar Towers.
Related Links
www.rakproperties.net
