Al Marjan Island is leading Ras Al Khaimah’s apartment market, with property prices and investor interest reaching new heights in Q3 2025. The island’s strong performance highlights a broader trend of rising demand for waterfront and lifestyle-focused communities in the emirate.
Al Marjan Island: The Top Performer
Al Marjan Island saw apartment prices jump by 16.8% year-on-year in Q3 2025, the highest growth rate among all residential areas in Ras Al Khaimah. Capital values on the island also rose by 6.3% over the quarter, making it a prime destination for both investors and homebuyers seeking luxury and long-term value. Apartments here are now valued at an average of Dh1,127 per square foot, outpacing other popular areas like Al Hamra (Dh890) and Mina Al Arab (Dh888).
Ras Al Khaimah’s Booming Apartment Market
The entire apartment market in Ras Al Khaimah mirrored Al Marjan’s upward trend, with capital values increasing by 15.5% annually and 4.9% quarter-on-quarter. The ValuStrat Price Index (VPI) for apartments reached 122.0 points, up from a base of 100 in Q1 2024. Other key areas also posted strong growth, with Al Hamra and Mina Al Arab apartments rising by 14.8% and 13.6% year-on-year, respectively.
Villas: Steady Growth, Premium Pricing
Villas in Ras Al Khaimah continued to appreciate, though at a slightly slower pace. The villa index hit 122.6 points, reflecting a 13.8% annual increase and a 3.3% quarterly rise. Mina Al Arab led the villa segment with a 15.8% year-on-year gain, while Al Hamra villas grew by 12.1%. Villas in Mina Al Arab now command average capital values of Dh2.4 million, highlighting the premium attached to waterfront living.
Market Overview: Prices, Yields, and Transactions
- The average capital value for residential properties in Ras Al Khaimah is Dh1.41 million.
- Apartments average Dh1.18 million, while villas are at Dh2.28 million.
- On a per-square-foot basis, apartments are valued at Dh861 and villas at Dh1,025.
- Rental yields remain attractive, averaging 5.4% for apartments and 5.2% for villas, making the market appealing for investors.
Off-Plan Sales Dominate, Ready Homes Lag
Off-plan transactions dominated the market, accounting for 84% of all residential sales in the first nine months of 2025. Over 4,100 off-plan units were sold, generating more than Dh8.2 billion in value, with an average transaction size of Dh2 million. In contrast, the ready home segment was subdued, with just 776 units sold and an average transaction size of Dh1.6 million. Apartments made up 76% of these ready transactions, while villas accounted for 24%.
Shifting Market Sentiment
Despite strong price growth, overall transaction volumes declined year-on-year. Off-plan sales dropped by 20.5%, and ready home transactions fell by 15.7%, reflecting a more cautious approach from buyers as prices rise. However, the demand for high-end, waterfront properties remains robust, especially in communities like Al Marjan Island, which benefit from ongoing infrastructure development and a reputation as a luxury residential and tourism hub.
Why Investors Are Flocking to Al Marjan Island
- Rapid price appreciation and premium per-square-foot values.
- Strong rental yields, especially for apartments.
- Ongoing infrastructure and lifestyle-focused developments.
- Growing reputation as a luxury destination in Ras Al Khaimah.
Conclusion
Ras Al Khaimah’s real estate market is evolving, with Al Marjan Island at the forefront of growth. The combination of rising prices, healthy rental yields, and a focus on waterfront living is attracting both investors and end-users, positioning the emirate as a top choice for property investment in the UAE.
