Ras Al Khaimah real estate prices set to rise 20% in 2026

The Ras Al Khaimah real estate market is expected to see further price growth in 2026 as strong buyer demand meets increasingly constrained supply, particularly in prime coastal locations, according to Metropolitan Premium Properties.

Off-plan sales are forecast to increase by between 15 per cent and 20 per cent compared with 2025, supported by the emirate’s growing appeal as a lifestyle and investment destination and continued investment in infrastructure, tourism and hospitality.

At the same time, the market is showing signs of maturity, with buyers becoming more selective and placing greater emphasis on quality, location and long-term fundamentals.

“Ras Al Khaimah is moving into a more balanced and sustainable phase of growth,” said Maxim Novikov, Head of the RAK branch at Metropolitan Premium Properties. “While off-plan demand remains healthy, especially for branded and lifestyle-led developments, buyers in 2026 are becoming more selective. Limited supply in prime areas is supporting prices across both new and ready properties and we’re seeing increasing competition for high-quality assets in established communities.”

Coastal zones attract high-end buyers

Al Marjan Island, which dominated off-plan activity in 2024 and 2025, has seen much of its available inventory sell out. As a result, demand in 2026 is expected to shift towards new and emerging coastal zones, including the Marjan Beach area, following announcements of landmark hospitality developments such as the Hard Rock Hotel.

Raha Island within Mina is also emerging as a key growth area, supported by plans for Armani-branded villas alongside the Four Seasons Hotel and Residences, as well as a number of boutique waterfront projects.

With fewer off-plan options available in prime coastal areas, increased activity is being seen in the secondary market. In 2025, prices for completed homes in communities such as Al Marjan Island, Mina and Al Hamra Village rose at the same pace as, or faster than, off-plan units, particularly for villas, townhouses and waterfront residences.

This trend is expected to continue into 2026, with average prices forecast to rise by at least 20 per cent, driven by strong end-user demand and a shortage of premium ready stock.

Flexible payment plans support sales

Developers have continued to support sales through flexible payment structures, including lower upfront payments, extended instalment schedules and post-handover plans. These incentives are expected to remain a key feature of the market in 2026, particularly as prices trend higher and international buyers prioritise entry affordability. GCC buyers, by contrast, are increasingly lifestyle-driven, with growing interest in beachfront homes for personal use and holiday living.

Rental fundamentals are also strengthening. Yields currently averaging around 7–8 per cent, especially for villas, townhouses and waterfront homes, are expected to edge higher as demand for ready properties continues to outstrip supply. This is being reinforced by Ras Al Khaimah’s expanding tourism sector and the rapid growth of short-term rentals.

With annual visitor numbers projected to approach five million, a significant share of residential units in key coastal communities is expected to be used for short-term rental purposes, supporting stronger pricing, improved liquidity and sustained investor interest across both off-plan and resale properties.

“The combination of tourism growth, globally recognised hospitality brands and limited new beachfront supply is reshaping the market,” Novikov added. “In 2026, we expect both off-plan and secondary segments to perform well, but the real differentiators will be location, branding and long-term fundamentals rather than sheer volume of new launches.”