Real estate near the casino in Ras al Khaimah: more expensive tomorrow

Two and a half years ago, we already we talked about the northernmost emirate of the UAE Ras Al Khaimah (Ras Al Khaimah, abbreviated as RAK)As well as its rapid growth, they also mentioned the possible appearance of the country's first casino here. Today, a casino is already under construction in the city, on the bulk island of Al Marjan, and the real estate market is booming.

In 2024, the volume of sales of apartments and villas, according to the municipality, has more than doubled compared to 2023, reaching a record 15.08 billion dirhams ($4.1 billion).

Real estate agency RIU Property has been operating in the emirate market since 2018. Its head, Sergey Luptakov, observed both the period of stagnation after the crisis and the market's return to growth.

Sergey, how has the situation in the Ras al Khaimah market changed in recent years? Why did the Emirate "shoot", what do you think?

Ras Al Khaimah, like the UAE as a whole, has had a long period of decline, but home sales have been going up since 2021.

The difference between Ras al Khaimah is that this time was put to good use here. While other cities were just waiting out the crisis, Ras al Khaimah continued to be built up. The projects did not stop here, the construction was carried out at the expense of the state. The bet was made that when the crisis was over, the emirate would have something to offer the market. And so it happened.

The investors who bought the property back then won. For example, a studio in a new building during the pandemic cost 50,000-60,000 dollars. Today, a similar apartment in the new project will cost 220,00,000 euros.

You can make good money now, as prices continue to rise.

I must say that even before the story of the opening of the casino, Ras al Khaimah was popular. But, of course, the prospect of turning the city into Las Vegas, as it is now jokingly called, has fueled the market even more.

The first rumors about the appearance of some kind of attractive object here appeared back in 2019, then information leaked that it would be a casino. The certainty came after the developer of the project received a license to build a casino. The opening is scheduled for early 2027. Every day I watch from the window how the work is going, the floors are added very quickly! 

The construction of a casino in a country like the UAE is really an out-of-the-ordinary event. Why do you think the authorities agreed to coordinate such a project? Who are they planning to attract, Emiratis or foreigners?

Many wealthy gambling people from the Middle East fly to play in the USA or Asia with a connection in Dubai. There are also players among the Emiratis. So why would they fly somewhere? They can stay in the country if there is a casino on a grand scale, like everything in the UAE. This will ensure an influx of finance into the local economy. The Arabs have always been far-sighted strategists. 

By the way, Wynn Al Marjan Island will surpass the famous Wynn Casino in Las Vegas in size. The hotel will have fifteen hundred rooms, 10 restaurants, a shopping center with leading brands, light and laser shows. 

What kind of housing is being built next to casino? How much does the apartment cost? With what minimum budget can you enter this market? Are there any prerequisites for further price increases in this location?

The building site on Al Marjan Island is limited. There will be practically no new projects, so the shortage of supply will push prices up. An analogy is the famous Palm Jumeirah, which appeared back in the early noughties. Real estate is in great demand there.

Several projects are currently being implemented near the casino, and several tens of thousands of housing units are being built. Mostly apartments and townhouses are on sale.

The minimum budget is 150,000 dollars. For this amount, you can find a studio from the owner. A one-bedroom (two-bedroom) apartment costs on the secondary market from 250,000 dollars, a three-bedroom townhouse from 450,000 dollars.

In new buildings, real estate is more expensive. Studios are offered from $230,000, one-bedroom (two-bedroom) apartments from $430,000, townhouses from $900,000.

What are the conditions installments when buying an apartment from a developer? What are the mortgage conditions when buying a ready-made home? Foreigners with a UAE resident visa, can take out a mortgage, right?

The installment plan is interest-free, the terms depend on the specific project. It is usually provided for 5 years. The initial payment is 20%, and the remaining amount is divided proportionally for 59 months.

UAE resident foreigners have the right to take out a mortgage. The rate is 3.8% per annum. By the way, you can also apply for a loan at 2.9% per annum to buy a car. In addition to a residence visa, you will need proof of income from a local employer or from your own business in the country.

Is it possible to become a resident in Ras al Khaimah through the purchase of real estate? Is it so?

Yes, only through the purchase of housing in a new building. The developer helps you apply for a residence visa. A residence permit is granted for a total of 12 years, but it must be renewed every 2 years. The visa is free for the first 2 years, then the extension is paid, it costs $ 1,000 per year. To maintain the status of a resident, if you permanently live in another country, you must visit the UAE every six months.

Some investors purchase an apartment in a new building in order to obtain a residence visa. Then, after becoming a resident, they take out a mortgage on real estate on the secondary market. After a year or two, they get the keys to the first apartment, rent out both objects, and use these incomes to make monthly mortgage payments.

The average rental yield is 5-6% per annum in dollars. We focus our clients on these figures and do not make manipulative promises. In some cases, the yield may be higher. 

What are the most attractive offers currently in projects near casinos for investors with different budgets?

A 5-minute drive from the casino, on the opposite bank of the canal, luxury Falcon Island villas and townhouses are being built. The cost of the villas starts from 2.18 million dollars.

Another elite project opposite the casino on the first coastline of Al Hamra Waterfront.One-bedroom (two-bedroom) apartments start at $497,000, two-bedroom (three-bedroom) apartments start at $712,000.

I would also like to mention an exclusive project that is strictly forbidden to advertise on the domestic market, that is, it is aimed exclusively at foreigners. Each apartment and villa owner will be assigned a personal navigator who will take you by water transport to the casino and back. In addition, a personal concierge service is provided. The cost of real estate in this community starts from 3 million and reaches 43 million dollars.  

How easy will it be to sell acquired assets if necessary?

I'm not going to lie, selling on the secondary market is never fast. This is a process that will take some time, several months. However, there are no difficulties with the sale of liquid housing, and there will not be, especially since the proposals from developers are gradually being washed away.

There are practically no studios left in new buildings right now. One-bedroom apartments are next in line, and developers will soon sell them off, and demand will shift to the secondary market.  

Have you lived in Ras Al Khaimah for many years? Tell us, what do you like about the city? What are its pros and cons compared to Dubai? How has the emirate changed in recent years before your eyes?

Ras al Khaimah has everything for a measured life - good shops, restaurants, everything is located nearby and there are practically no traffic jams on the roads.

The sea is the cleanest, plus our climate is milder. The average air temperature is 5-6 degrees Celsius lower than in Dubai and 10 degrees Celsius lower than in Abu Dhabi. People from other emirates come here as a resort, especially in summer, when the difference in climate is especially noticeable. Some stay for the weekend, others rent a place.for a month.

There are those who have moved to Ras al Khaimah on a permanent basis. There are many people who, while living here, go to work in Dubai or Sharjah. It is not surprising, considering that both renting and buying real estate are 3 times cheaper than in Dubai.  

Prices in restaurants in Ras al Khaimah are also significantly lower, and the food is tastier. A good dinner in a restaurant in Dubai will cost about $100 for one person, and 20 for us.

The Emirate is changing before our eyes, growing not only in terms of infrastructure and residential development, but also technologically. Moreover, since the digitalization of public services took place here after Dubai, the government of Ras al Khaimah took the bicycle already invented by its neighbors as a basis and refined it. Today, almost everything can be done through virtual applications: you can apply for documents, renew your driver's license - you personally only take a vision test. It's nice to live in a resort where everyone goes on vacation, but at the same time the city is developed!

Another plus that concerns the United Arab Emirates as a whole. The country is safe, there is no crime, robberies. People carry even large amounts of money with them.

Among the disadvantages, I would like to note that, according to my observation, the latest technology is brought here 2-3 days later than in Dubai. There are no large furniture stores in Ras al Khaimah, for example. There aren't as many nightclubs as there are in hangout Dubai, but that doesn't really upset me, since I don't go to them.  

Is there any interest in Ras Al Khaimah as a city to move to? What kind of real estate can you offer for living?

Yes, of course, many foreigners move here, some of them move after living in Dubai for a while. Two years ago, I myself lived in Dubai on Palm Jumeirah in a nice apartment overlooking the sea, but I was always relieved to leave for Ras al Khaimah, and in the end I am here.

Ras al Khaimah is chosen for living not only because of the climate. The infrastructure has improved significantly over the past few years. The Emirate attracts top doctors from abroad. There are international schools.

Some are moving and starting businesses, taking advantage of tax advantages. Moreover, they open not only trading enterprises or enterprises from the service sector, but also factories and production facilities. There are many active people from Russia and the CIS. Thanks to them, we have shops with a "Russian" assortment, salons, restaurants with Russian-speaking staff. People come here and say to themselves, "Oh, how cool it is here, let me organize something here too!».

In general, the number of buyers and investors in real estate from Russia and the CIS has increased many times in recent years. By the way, direct flights from Russia to Ras Al Khaimah Airport have resumed since last year. They were suspended back during covid.

I would like to note that foreigners in Ras al-Khaimah are only interested in the Al-Hamra area and the related Al-Marjan Island. This is a developed, perfectly maintained location with everything necessary for both living and recreation. 99% of the real estate that our agency sells is located in this area near the coast.

There are enough offers for moving people. These are studios, small apartments for singles, and spacious apartments, villas for families.

Approximately 20% of transactions in our agency are purchases of residential real estate, and 80% are for investment purposes.   

And how much does it cost to rent a house in Ras al Khaimah?

Long-term rental of a studio in the Al Hamra area will cost about $ 690 per month, one-bedroom apartments (two-bedroom) from $ 870, two-bedroom apartments (three-bedroom) from $ 1,370, townhouses from $2,170 per month.

Short-term studio rental costs from $1,500 per month.

I have already talked about the average rental yield of 5-6% per annum. Let me also remind you that the income of individuals in the UAE is not taxed if it does not exceed 350,000 dirhams per year. Thus, you can rent an apartment, make a profit and not pay tax if you are a tax resident of the United Arab Emirates.      

Sergey, tell us about your agency. What services does it provide?

We are engaged in the sale and rental of real estate. In addition, since 2019, we have been providing interior repair and organization services.

We can also take over the management of the housing facility and its rental.

We know how to work with investors: we help you choose an investment strategy, we do analytics, we calculate the forecast of the effectiveness of a particular investment.

To summarize, the agency is interested in finding a good property for you to invest in. Then we can make cosmetic repairs, if necessary, equip an apartment or villa, buy and connect appliances, set up Internet, television, prepare for rental. In addition, our specialists will help you obtain a short-term rental license. We are also ready to provide advice on starting a business and obtaining a residence visa, if necessary.

That is, the client may not come at all?

We have clients who bought an apartment and then sold it for a profit without ever seeing it. There are many foreign investors from Europe, the USA, and Russia who cannot come in person, but prefer to send a power of attorney.

Although we recommend that you personally see what you are buying. We invite you to join us in Ras Al Khaimah!

Advertisement. Luptakov Sergei.  erid: CQH36pWzJqCKxGbYp7EcNbertWufFHxB8mXdfGXQ19oNpk