Why this should be your next holiday home destination

Ras Al Khaimah in the UAE continues to see a surge in tourists from around the world – but could its huge economic growth also make it a top destination to buy a new holiday home in the sunshine?

Luxury developments. Man-made islands. Stunning skyscrapers. The United Arab Emirates (UAE) is a regular hotspot for both tourists and investors alike.

But with Dubai and Abu Dhabi becoming increasingly expensive in recent years, the rapidly expanding emirate of Ras Al Khaimah (RAK) has emerged as a strong and more affordable option.

Nestled on the shores of the Arabian Gulf, it’s not hard to see its appeal. Russian holidaymakers are attracted by RAK’s stunning natural beauty, pristine beaches and its close proximity to exciting mountain adventures and water sports.

Naturally, many may consider the emirate to purchase holiday homes. Ease of investment, competitive prices and stunning, brand new real estate developments makes RAK the ideal choice for those looking to own a vacation retreat in a destination with year-round sunshine.

And, as a location undergoing huge economic growth, it makes investing in RAK an exciting, long-term prospect.

One of the world’s fastest growing tourist destinations

RAK is already established as one of the most popular destinations for holidaymakers in the UAE; the domestic tourism market represents over a third of all visitor arrivals to RAK.

But it’s quickly growing in global significance, too. Russia, Germany, the UK and India are among RAK’s top international source markets and, by the end of 2018, it’s expected that a total of one million tourists will have visited the region.

To underline the rising growth, in the first 10 months of 2017:

• There was a 65% year-on-year increase in Russian visitors
• 17% uplift in British visitors
• Strongest growth with the emerging markets of the Czech Republic, Poland, India and Kazakhstan

The RAK Tourism Development Authority also aims to drive tourism revenues to as much as AED 2.7 billion (RUB 46.2 billion) by the end of this year and, by the end of 2020, there’s a development pipeline that aims to deliver 10,000 new hotel keys just to handle the increasing demand from visitors.

Of course, RAK’s easy access to Dubai International Airport helps to draw tourists from across the globe, but the emirate also has its own major airport. RAK International Airport offers regular flights to key tourist source markets in Saudi Arabia, Egypt, Pakistan, India, Poland and Czech Republic, with additional seasonal flights serving Latvia and Russia.

“Tourism is one of the largest, most dynamic and fastest developing economic sectors in the world. It creates employment, contributes to GDP growth, attracts investment and enhances the quality of life. For these reasons, it is a central pillar of Ras Al Khaimah’s economic growth and diversification strategy.”
HH Sheikh Saud Bin Saqr Al Qasimi – Ruler of Ras Al Khaimah and Member of the Supreme Council of the UAE

A hub for global business

Investors should also be aware that RAK is becoming an increasingly important centre for commerce. It has managed to draw thousands of international organisations as a base for their Middle East, Africa and South Asia operations, attracted by its cost-efficiencies and strategic location.

In 2017, the RAK government launched the RAK Economic Zone, recognised as one of the world’s best free zones for small and medium-sized enterprises:

• 33 million square metres of land and housing
• Over 13,000 companies listed
• Free from corporate and income taxes
• Companies can fully repatriate profits
• As much as 50% more affordable than free zones in other emirates such as Dubai

A property market in demand

This growth, coupled with its appeal as a tourist destination, is having a significant impact on performance in RAK’s property market.

With sustained investment, its commutable distance to Dubai and more affordable rents, there continues to be a rise in the number of tenants making the move from neighbouring emirates and relocating to RAK.

For Russian investors too, RAK’s affordability over Dubai and other emirates, coupled with its qualities as a holiday destination, will also prompt more to consider owning a holiday home in the region.

Property in RAK is considerably more affordable to purchase than real estate in other parts of the UAE.

As a result of this demand, RAK’s key investment hotspots are forecast to deliver the levels of growth once enjoyed by investors in other desirable UAE locations. Over the next three years, Russian investors buying in areas such as Al Marjan Island could enjoy capital appreciation as high as 20% and, for those that rent out their property, could achieve yields from 6% to 10%.

In summary – a beautiful holiday destination and exciting investment location

Glorious sunshine, pristine beaches and fantastic adventures. RAK is the perfect choice for a summer holiday, offering a more peaceful, naturally beautiful experience to its neighbour Dubai, while still having the attractions of the big city just a short drive away.

But thanks to huge economic growth and greater affordability, it’s also a destination that should excite anyone looking for a holiday property investment. Long-term forecasts suggest that investors will be able to enjoy healthy returns on investment, as well as owning prime real estate in one of the world’s rising tourism hotspots.