After Dubai, Ras Al Khaimah is going to be the second emirates to catch up with the property boom. Engel & Voelkers is going to open its shop at the Al Hamra Mall in a few months to meet the growing property demand there. “I believe Ras Al Khaimah will become the ‘Monaco of UAE’ with its green landscape and mountain scenery,” said Sebastian Wels, managing director of Engel & Voelkers Middle East. “We have seen a raise in popularity of the Emirates for investors, especially for those who have been priced out of Dubai and Abu Dhabi property market.”
Ras Al Khaimah is the furthest north of the UAE’s seven emirates and occupies a prime position on some of the world’s most important trade routes. Its idyllic location with fertile plains, mountains, hot springs, mangrove forests and miles of unspoilt Gulf coastline make RAK keep growing as a tourist destination and now the forth largest emirate. Since 2000, almost AED 100 billion of domestic and foreign investment has poured into RAK – 31 real estate developments are underway or at the planning stage. Some developments in the area has seen their prices increased by 20% annually for the past two years.
Unlike Dubai, freehold ownership is granted for every property in RAK. With its property price and cost only 60% of those in Dubai, RAK becomes the newest real estate hotspot for investors. For those who have missed the property profit of 300% appreciation in the last 5 years in Dubai, they do see buying properties in RAK as an investment opportunity or holiday homes. Last year RAK has recorded the highest RevPar (revenue per available hotel room) among all emirates but still sees a 4,000 shortage of hotel rooms. The exceed demand pushes the estimated current rental yield high at 6 – 8%.
The RAK shop is wholly owned by a Engel & Voelkers franchise partner, Mr. Klaus Hoelscher, who has also owned 3 other shops in Dubai. Mr. Ahmed Tuaima is assigned to be the branch manager in RAK shop to handle daily business.
© 2008 Al Bawaba (www.albawaba.com)
Construction & Real Estate
