Ras Al Khaimah property prices rise in 2025, villa rates jump 42% due to demand

Villa prices in Al Hamra Village jumped 42 percent in 2025, with five-bedroom homes exceeding Dh14 million, while apartment prices also saw strong gains, according to new data released by Bayut.

In 2025, Ras Al Khaimah’s residential market saw price growth for both villas and apartments. This was driven by higher demand, more investors, and growing interest in waterfront and resort-style communities. The emirate is becoming one of the UAE’s fastest-growing real estate markets, with both property values and rental yields rising in several areas.

Sales data shows sharp price acceleration

According to Bayut, Al Hamra Village had the highest villa price growth in the emirate, with average prices per square foot rising by almost 42 percent compared to last year. All types of villas saw price increases, and five-bedroom homes sold for more than Dh14 million. This shows ongoing demand from wealthy buyers looking for larger homes and properties focused on lifestyle.

Strong villa sales have made Al Hamra Village one of the best-performing residential communities in the northern emirates in 2025. This success is due to limited supply, its waterfront setting, and steady interest from both buyers and investors.

Apartment prices also saw double-digit growth in major communities. In Al Hamra Village, average prices per square foot went up by over 30 percent, while Al Marjan Island saw prices rise by more than 21 percent this year. Most demand was in established areas like Royal Breeze, Al Hamra Marina Residences, and Bab Al Bahr Residences, where both sales and listings stayed high.

Al Marjan Island emerges as a growth hotspot

Al Marjan Island continued to attract investor attention in 2025, with price appreciation reflecting expectations of future demand growth. The residential market has benefited from ongoing infrastructure development and increased visibility ahead of the anticipated opening of Wynn Marjan Island, a milestone project expected to have a spillover effect on surrounding residential and hospitality-linked assets.

Prices on Al Marjan Island have stayed strong because more mid- to high-end apartments are being built, and international buyers are showing more interest. Many want to invest early in the area’s long-term growth.

Rental yields remain competitive

In addition to rising property values, rental returns in Ras Al Khaimah continue to attract investors looking for income. Bayut’s data shows that apartment rental yields in Yasmin Village are over 12 percent, making it one of the top areas for rental income in the emirate.

In well-known freehold communities, Al Hamra Village and Al Marjan Island offered steady rental yields between 5.5 and 5.8 percent. This provides a good mix of income and long-term value growth.

Villa rental yields were highest in non-freehold areas. Shamal Julphar saw returns up to 6.35 percent, and Julfar had yields around 5.79 percent. This shows there are many yield opportunities across different property types and price ranges in the emirate.

Rents record steady increases

Rental prices in Ras Al Khaimah went up in 2025. In Al Hamra Village, average apartment rents increased by up to 14 percent, and on Al Marjan Island, they rose by about 10 percent. This was mainly due to ongoing demand for waterfront homes and community living.

Mina Al Arab saw especially strong rent growth for one- and two-bedroom units. This reflects more residents wanting lifestyle amenities and to live close to leisure facilities.

Supply growth signals confidence

Bayut’s report also notes that some villa communities have more homes available. Falcon Island, for example, had a big increase in listings compared to last year, showing that developers are more active and confident about selling new homes.

So far, the higher supply has matched ongoing demand. This has helped keep prices stable and supports the view that more growth is likely as new phases are completed.

Bayut says that Ras Al Khaimah’s real estate market is strong because entry prices are lower than in Dubai, liquidity is improving, rental yields are high, and there are many tourism and infrastructure projects planned.

“Ras Al Khaimah is entering a new phase of growth, supported by rising property values, attractive rental yields, and a clear long-term development roadmap,” said Haider Ali Khan, CEO of Bayut and CEO of Dubizzle Group Mena. “Investor confidence is strengthening, particularly in waterfront and master-planned communities that combine lifestyle appeal with solid investment fundamentals.”

As major projects near completion and demand keeps rising for both sales and rentals, market data shows that Ras Al Khaimah is becoming a top real estate destination in the UAE. It offers chances for both property value growth and rental income.