​​​​Dubai – CBRE Middle East, the global leader in commercial real estate services, released its latest research paper on the Ras Al Khaimah (RAK) real estate market for the full year of 2025.

RAK’s real estate market closed 2025 on a solid footing, underpinned by robust macroeconomic fundamentals, rising investor confidence, and a wave of high‑impact developments reshaping the emirate’s economic landscape. While national GDP forecasts for 2026 saw a slight adjustment due to softer oil projections, the UAE economy remains resilient, fueled by non-oil sector growth and strong foreign direct investment (FDI). RAK has capitalized on this environment, becoming one of the fastest-growing investment destinations in the country, bolstered by its strong sovereign rating and record-breaking levels of greenfield FDI.

RAK has continued to successfully diversify its economy through a series of major industrial and tourism projects, as reflected by the rising number of new business licenses, and supported by the snowball effect of mega‑projects such as the USD 5.2 billion Wynn Al Marjan Island development. RAK’s low inflation environment, steady employment growth, and strong business formation, including more than 19,000 new companies added to RAKEZ alone, reinforced its competitiveness and created a solid platform for sustained real estate demand across residential, hospitality, and mixed‑use sectors.

RAK’s Residential Market experienced exceptional growth in 2025. Prime apartment sales prices have now reached AED 2,428 per square foot, the highest level in the current cycle, driven by strong capital appreciation across coastal destinations such as Al Marjan Island, Al Hamra and Mina Al Arab. Villa prices also strengthened, rising to an average of AED 1,211 per square foot, driven by robust growth within Al Hamra. Overall market values climbed sharply, with average apartment prices increasing 32% year‑on‑year and villa prices rising 11%. Rental dynamics mirrored this momentum; apartment rents surged nearly 25% annually, supported by significant new supply in key communities, while villa rents remained broadly stable, recording pockets of growth in prime areas such as Mina Al Arab.

Momentum was further amplified by a wave of high‑profile project launches that set new benchmarks for absorption. Developments such as Mondrian Beach Residences, Jacob & Co Residences, and upcoming branded projects like Janu Al Marjan Island continue to elevate the emirate’s luxury positioning. However, the rapid escalation in prime pricing has resulted in a growing divergence between average sales and average rental values, a trend expected to moderate as newly launched inventory transitions to handover over the coming years. Despite a year‑on‑year reduction in overall sales volume and total transaction value, primarily due to mid‑market launches in emerging districts like RAK Central, the market witnessed a strong rebound in Q4, underscoring the ongoing the depth of demand.

RAK’s Hospitality Sector delivered another standout performance, with visitor arrivals reaching an all‑time high of 1.36 million during full year 2025, evenly split between domestic and international visitors. The emirate has also continued to strengthen its global tourism footprint, supported by expanding air connectivity, new luxury hotel additions, and a growing calendar of international events. Key metrics demonstrated a broad-based improvement, with occupancy rising 4.6 percentage points, Average Daily Rate increasing 6.6%, and RevPAR surging 11.5% year‑on‑year. RAK’s hotel supply now exceeds 9,000 keys, with the development pipeline for 2026–2030 reflecting a transformative expansion phase, with more than 9,500 additional keys expected, 92% of which will be in the five‑star category.

International operators continue to deepen their presence, led by Accor and Hilton, while new entrants including Aman Group and Wynn Resorts will help further diversify the luxury landscape. Marriott also expanded its pipeline significantly through new announcements including The Luxury Collection and JW Marriott projects. Although select developments faced temporary delays, the pipeline remains exceptionally strong, signaling sustained confidence among global hospitality investors.

Matthew Green, Head of Research at CBRE MENA, comments: “Ras Al Khaimah’s real estate market continues to evolve at an unprecedented pace, supported by a combination of strong macroeconomic fundamentals, record levels of foreign investment, and a maturing property ecosystem. The emirate’s residential and hospitality sectors, in particular, have entered a new phase of growth driven by global brand partnerships, major tourism‑led projects, and a deepening pool of international buyers. As the delivery cycle accelerates from 2027 onwards, we expect RAK to further solidify its position as one of the UAE’s most dynamic and future‑ready real estate markets.”

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2025 revenue). The company has more than 155,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, data center solutions); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.com.

About CBRE in the MENA region: 

CBRE Group, the world’s largest commercial real estate services and investment firm, has been serving clients in the Middle East region for over twenty years. The company has over 1,400 professionals* in the Middle East operating out of nine offices in six countries in the region. Working alongside investors, financers and occupiers, our specialists provide a fully integrated suite of services, including facilities, transaction, and project management; cost management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.

Contact:
Inci Gecekusu
inci.gecekusu@cbre.com