Investors and buyers are increasingly attracted to Ras Al Khaimah due to its ideal location, favorable property prices, and higher return on investment (ROI). The emirate offers more value compared to the other cities undergoing development.
Lower property prices combined with promising ROI make RAK an appealing choice for real estate investment.
- Why to Invest in Ras Al Khaimah
- Things to Consider Before Investing in Off-Plan Projects
- Steps to Take When Buying Off-Plan Property in RAK
- New Projects in RAK for Investment
- FAQs
Why to Invest in Ras Al Khaimah
Let’s find out what makes Ras Al Khaimah such a hot spot for real estate.
- Lower property prices.
- Higher ROI potential, especially near the sea, new resorts, hotels, islands, public attractions and amenities.
- Opportunities to invest in off-plan properties.
- Ras Al Khaimah is ideally located on the borders of the Arabian Sea.
- The emirate has several tourist spots that cater to nature lovers, such as Wadi Shawka, Shawka Dam, and Wadi Beeh Dam.
- There are several tourist spots that attract archaeologists and history lovers, such as the National Museum of Ras Al Khaimah.
- Al Marjan Island, the city’s first artificial island, enhances its real estate appeal.
- There are natural and historical attractions. A wealth of natural beauty and historical sites make it a diverse and attractive destination.
- It’s the next Dubai. With its rapid development and increasing attractions, Ras Al Khaimah is on its way to becoming the next major hub like Dubai.
Are you considering to buy an off-plan property in RAK? This guide will walk you through the booming market of RAK.
Things to Consider Before Investing in Off-Plan Projects
When considering upcoming residential projects in Ras Al Khaimah, think about the advantages and disadvantages of these projects.
| Advantages | Disadvantages |
|---|---|
| Off-plan properties allow you to be among the first residents, enjoying brand-new facilities and the novelty of newly built homes. | Construction delays can push back the move-in date or rental income timeline. |
| Distributes the total cost with convenient payment plans offered by many developers, making it easier to pay. | Economic changes can affect property values, impacting your potential return on investment. |
| RAK’s property market is on the rise, and the value of investment is most likely to increase over time. | The final product might not perfectly match the initial plans, leading to disappointment with finishes or quality. Choosing a reputable developer helps mitigate this risk. |
| Find a property that suits you best, from studios to spacious villas. There is something for all. | Legal disputes or changes in regulations can create challenges, especially if the developer encounters financial or legal problems. |
| Investing in RAK particularly has an edge over the other emirates, owing to its ideal location near the sea. | Additional fees or unexpected expenses during construction can stretch your budget. |
Steps to Take When Buying Off-Plan Property in RAK
Before investing in off-plan properties in RAK, there are a few things one must know. Here are the steps:
Research and Due Diligence
Dedicate time to understanding RAK’s property market trends, identifying areas with high growth potential, and researching reputable developers with a proven track record.
Carefully examine the off-plan project’s details, such as the location, construction timeline, and the nearby facilities and amenities it has to offer.
Secure a Reputable Developer
Choose a developer with a strong track record of completing projects on time and within budget. Some developers will state a budget and then stretch it later to include additional expenses. Nobody wants that. Ideally, you should look for builders with a history of quality construction and positive customer reviews.
Understand the Contract and Payment Plan
Carefully review the sales and purchase agreement with a lawyer to understand all terms and conditions. This includes payment schedules, delivery timelines, handover procedures, and exit clauses.
Take time to understand the payment structure. This includes the down payment amount, instalment amounts, deadlines and any late payment penalties.
Financing Options
While some developers offer payment plans, consider exploring financing options from banks or financial institutions to leverage your investment.
Plan your finances carefully to ensure you can comfortably manage future payments throughout the development phase.
Legal Procedures and Registration
Insist on utilising an escrow account for the payments. This safeguards your funds and ensures they are released to the developer only upon completion of agreed-upon milestones.
Understand the registration process of your property. This typically involves registering with the Land Department and paying any associated fees. Taking help from a real estate agent can be beneficial.
Off-Plan Sales Contract Registration
To register the sale with the Lands and Properties Sector in Ras Al Khaimah, do the needful. This has to be done before the construction starts. This ensures everything is legal and is in the best of interests of both the parties.
Sign up or log in to the relevant government portal.
- Gather the documents
- Undertaking form (needed for new developments)
- Copies of your passport and Emirates ID
- Sales and Purchase Agreement (SPA) with key details:
- Buyer and seller information
- Escrow account details
- Payment plan outline
- Signatures of both buyer and seller
- Get approval from Government of Ras Al Khaimah
Submit all the documents for review. Once approved, you’ll have to pay a fee of AED 3,000.
After paying the fee, you’ll receive an official off-plan sales registration certificate. This document confirms the registered sale and provides peace of mind.
Choose a Payment Plan
Selecting a payment plan is crucial when buying off-plan properties. RAK offers options like instalment plans or making the final payment after the handover. Understand the pros and cons of each plan to avoid any future issues.
New Projects in RAK for Investment
There are plenty of new projects in RAK for investment. Review the above-mentioned guidelines and see which of the following projects can be of interest.
- RAK Bay Residences
- Al Hamra Falcon Island
- RAK Gateway Residences II
- Uniestate Rose Building
- Union Tower Al Seer
- The Queens Residential Villas
- Kay Holiday Homes
- Al Mahra Resort
FAQs
Below are some areas that have experienced growth in terms of investment.
– Al Marjan Island, with its resorts and hotels
– Al Hamra Village, with exciting new development
– Mina Al Arab
– Dafan Al Nakheel
– Freehold areas are also a good choice for off-plan or already-built properties
Absolutely! Expats can invest in RAK’s property market. RAK’s property market is booming and has seen tremendous growth over the years.
When buying an off-plan property in RAK or other emirate, there are some things to consider. It is important to consider these before finalising the investment. That said, RAK has so much to offer for the residents, prospective buyers and tourists. It has the potential to become the next Dubai, literally!
