In the third quarter of 2025, Ras Al Khaimah (RAK) real estate made headlines—and not just for modest growth. The emirate’s apartment sector surged, and Al Marjan Island stood out as the strongest performer, posting a remarkable 16.8% year-on-year increase in apartment prices.
This rise underlines the island’s growing appeal among both investors and homebuyers, positioning it as the premium waterfront destination of choice in Ras Al Khaimah.
The Numbers Behind the Surge
Capital Value Index
According to the ValuStrat Price Index (VPI) for Q3 2025:
- The overall residential VPI for RAK reached 122.2 points, up 14.9% year-on-year and 4.3% quarter-on-quarter.
- Apartments led the charge with a 15.5% annual and 4.9% quarterly increase, pushing the apartment VPI to 122.0.
- Villas also grew, but at a slower pace: 13.8% YoY and 3.3% QoQ.
These figures indicate a clear preference for apartments in RAK’s freehold market, with demand driven by both lifestyle buyers and investors.
Al Marjan Island’s Performance
- Al Marjan Island apartments recorded the highest growth in the emirate: 16.8% YoY and 6.3% QoQ.
- On a per-square-foot basis, apartments on the island averaged AED 1,127/sq ft, outperforming other key areas such as Al Hamra (AED 890) and Mina Al Arab (AED 888).
- The average capital value for apartments in RAK stood around AED 1.18 million, while villas averaged about AED 2.28 million.
Why Al Marjan Island Is So Attractive
Waterfront Living & Premium Lifestyle
Al Marjan Island’s waterfront setting is a major draw. The appeal of island living—blended with upscale infrastructure, panoramic sea views, and master-planned amenities—is resonating strongly with buyers.
The island is increasingly seen not just as a place to live, but as a lifestyle destination—a place where residential living meets leisure, hospitality, and investment potential.
Investor Confidence & Off-Plan Frenzy
Off-plan sales dominated Ras Al Khaimah’s market in early 2025:
- 84% of all residential sales in the first nine months of 2025 were off-plan.
- Over 4,100 off-plan units were sold during this period, totaling AED 8.2 billion in value.
- The average transaction size was around AED 2 million, underlining that investors are not just speculating—they are committing substantial sums.
This dominance of off-plan deals suggests that many buyers are looking ahead, banking on future capital appreciation rather than immediate occupancy.
Rental Market Strength
It’s not just sales that are booming—rents on Al Marjan Island have shot up too:
- Median annual rent climbed from AED 40,000 in April 2023 to AED 64,800 in April 2025, a 62% rise in just two years.
- As of early 2025, the median rent per sq ft on the island stood at AED 81, with most listings between AED 50 and AED 120 per sq ft.
- Apartments and duplexes dominate the rental scene—making up 97% of all residential listings.
- Rental yields remain strong: the gross yield for freehold residential in RAK is about 5.4%, with apartments matching that.
These robust returns are fueling investor interest. Many see Al Marjan Island apartments not just as long-term homes but as rental income assets.
Mega Projects: Boosting Sentiment
Several big-ticket developments are amplifying the island’s appeal:
- The Wynn Al Marjan Island resort, a USD 5.1 billion integrated entertainment and hospitality complex, is expected to open in 2027.
- Lifestyle-branded residences are taking root: for example, Mondrian Al Marjan Island Beach Residences, developed by Elevate in partnership with Ennismore, is now open for private sales.
- The master plan for the island also forecasts strong future supply, including more branded hospitality and residential offerings.
The anticipation of these large projects is clearly feeding into buyer psychology—many are investing now in expectation of a transformed, high-demand destination.
Risks & Challenges
While the momentum is strong, several risk factors merit consideration:
- Supply Risk: With so much off-plan buying, there’s always a risk of oversupply. If too many units are delivered without matching demand, prices and rents could soften.
- Market Sentiment: High growth has encouraged speculative behavior. If investor sentiment cools (for example, due to rising interest rates or macro economic pressures), off-plan demand could slow.
- Execution Risk: Large projects like Wynn may face delays or cost overruns. Their success is critical to Al Marjan’s long-term positioning.
- Affordability: The island is now commanding a premium. At AED 1,127/sq ft, it’s significantly more expensive than other RAK neighborhoods (Al Hamra, Mina Al Arab), potentially pricing out some buyers.
- Regulatory & Tourism Risk: The Wynn resort, which is central to the island’s future identity, hinges on tourism growth. Any policy changes or shifts in travel trends could impact its success—and by extension, real estate demand.
Outlook: What’s Next for Al Marjan & RAK
Short-Term (12–24 months)
- Continued Price Growth: Given current momentum, apartment values in Al Marjan Island are likely to continue appreciating, albeit perhaps at a slightly moderated pace if supply increases.
- Rising Rental Demand: As more off-plan units are completed, rental inventory will grow—but if demand keeps pace, yields should remain strong.
- Investor Influx: Offshore buyers and long-term investors will likely continue targeting Marjan due to its lifestyle credentials and capital-growth potential.
Medium-Term (3–5 years)
- Wynn Resort Impact: The opening of the Wynn integrated resort could be a game-changer, driving both tourism and real estate interest. This landmark development would anchor the island’s luxury positioning.
- Branded Residences Expansion: We can expect more lifestyle-branded residential projects (hotels + residences) to come online, leveraging Marjan’s coastal appeal.
- Infrastructure and Amenities: Continued development of infrastructure (roads, utilities) and community amenities will be essential to support the projected growth.
Long-Term (Beyond 5 Years)
- Mature Island Community: Al Marjan could evolve into a fully integrated, mature waterfront destination—combining residential, hospitality, entertainment, and leisure.
- Sustainable Growth: If demand remains strong, property values may stabilise at a premium, making Marjan a long-term cornerstone of RAK’s real estate economy.
- Tourism-Driven Real Estate: With the Wynn resort and other future developments, real estate could be deeply tied to tourism cycles, meaning the island becomes both a home and a tourist-hospitality ecosystem.
Final Thoughts
Al Marjan Island’s stellar performance in Q3 2025 isn’t a fluke. A potent mix of strong price growth, high rental yields, off-plan momentum, and mega project catalysts has propelled it to the front of Ras Al Khaimah’s real estate story.
- For investors, the island offers a compelling case: lifestyle-led demand, capital appreciation, and rental returns.
- For homebuyers, especially those who value waterfront living, Marjan presents a future-forward destination.
- For RAK, Al Marjan Island is more than just real estate — it’s rapidly becoming a symbol of the emirate’s transformation into a premium, tourism-rich, and investment-friendly place to live.
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