RAK RESIDENTIAL CLUSTER

A OFF MARKET PROJECT, JUST FOR THE MOST QUICK INVESTORS

5% reservation
20% SPA (after 2 month from signing of reservation)
25% 1st year
25% 2nd year
25% 3rd year

This master plan marks Ras Al Khaimah’s first Central Business District (CBD) and boasts an ideal location near Al Hamra Village. Furthermore, it is conveniently situated just a 5-minute drive from Al Marjan Island, which is set to host the upcoming Wynn Al Marjan Island Resort, the region's first Integrated Resort featuring a casino all near the RAK Residential Cluster.

TILL A GFA OF 18770M2 FOR THE FIRST PLOTS IN THE MARKET

The subject cluster comprises six residential plots covering an expansive area of 17,912 square meters. With a floor-to-area ratio of approximately 3.98x, the project's overall Gross Floor Area is estimated at 71,370 square meters. The proposed development scheme will generate around 646 residential apartments and a total retail Net Rentable Area of about 540 square meters.

TO A GFA OF 12000M2 FOR THE FIRST PLOTS IN THE MARKET

The master plan extract shows the location of the subject residential cluster consisting of 6 residential plots at the RAK Residential Cluster.

GFA Starting at 8500m2 FOR THE FIRST PLOTS IN THE MARKET

Ras Al Khaimah’s Primary Residential Market

The residential real estate market in Ras Al Khaimah is performing exceedingly well following the anticipated economic growth due to the upcoming Wynn Al Marjan Island and the emirate’s strong economic development.
There is a growing demand for quality residential properties due to population growth, economic development, and RAK’s appeal as a tourism hub.

Furthermore, RAK Central’s planned positioning as a financial / business hub in the emirate is expected to drive demand for additional residential projects offering varied housing options. A quality residential product within the masterplan offering competitively priced units can attract a broad tenant base. Lastly, effective property management will help maintain tenant satisfaction in this dynamic market.

RAK Residential Cluster Frequently Asked Questions

Inspired by local Arabic design, Al Hamra Village combines heritage and modernity in a secure and gated residential neighborhood. Encompassing an impressive 77 million sq. ft., this acclaimed master plan embraces a diverse collection of 4,000 homes, including villas, townhouses, and apartments, and fostering a vibrant global community.

Set against the backdrop of the majestic Jebel Jais mountains and amidst a championship golf course, pristine beaches, a marina, and upscale hotels, Al Hamra Village offers a lifestyle marked by convenience, with abundant amenities nearby. This fully-integrated waterfront haven hosts some of Ras Al Khaimah’s finest residential real estate and hospitality, leisure and entertainment options for an idyllic living experience.

Site Advantages of RAK Residential Cluster :

  • The project’s location within an emerging financial district presents a significant advantage, offering proximity to corporate offices, business hubs, and financial institutions, making it highly appealing to professionals seeking convenient housing options.

  • First-Mover Advantage: Being one of the first residential projects within the financial district masterplan provides a competitive edge, potentially allowing for higher lease rates and occupancy rates as the area develops further.

  • Market Demand: The proposed project can capitalize on the growing demand for residential units in Ras Al Khaimah.

  • Amenities and Facilities: Providing modern amenities such as fitness centers, co-working spaces, and retail outlets within the complex can attract professionals looking for convenience and a high-quality lifestyle.

  • Diverse Tenant Base: RAK Central’s vision to become a leading financial centre in the country can create opportunities to cater to a diverse tenant base, including expatriates, business travellers, and local professionals.

  • Economic Growth: The project can benefit from the overall economic growth and increasing business activities within the financial district, attracting a steady flow of potential tenants.

 

  • The adjacent charts present the average primary and secondary market sales price ranges for key upcoming apartment projects in Ras Al Khaimah.

  • Furthermore, the percentage difference between each project’s average primary and secondary market rates is highlighted.

  • The prices achieved in the secondary market are anywhere between 8% to 35% higher than the rates achieved by developers selling on the primary market.

  • These premiums come as a result of several factors, such as:

    1. Increased Market Activity: The overall increase in activity within the RAK real estate market can be attributed to various factors, including anticipation of the Wynn RAK project and its economic impact and favorable investment climate. As more buyers enter the market, competition for properties increases, naturally leading to higher prices.

    2. Construction Progress Impact: Off-plan buyers on the primary market might have perceived these early investments as more speculative, thus securing properties at lower rates. As construction progresses, the perceived risk decreases, thereby driving up prices.

    3. Scarcity and Limited Supply: In some cases, the secondary market premiums may be driven by scarcity. If these apartment projects are in high demand due to their location, amenities, or unique features, the limited availability of units on the secondary market can drive up prices.

  • The adjacent chart presents a comparison of how apartment sales prices have evolved amongst each of the emirates (except Umm Al Quwain and Fujairah) across the following periods:

    • 1 Month (between June and July 2023)

    • 1 Year (between July 2022 and July 2023)

    • 5 Years (between July 2018 and July 2023)

  • It can be observed that between June and July 2023, as well as July 2022 and July 2023, the growth in apartment prices in RAK (at 3.77% and 25.47%, respectively) outperformed the other emirates.

  • This reflects the strong interest and growth in the emirate, mainly due to the anticipated economic boost driven by the Wynn RAK project.

  • It is worth noting that even over the past five years, growth in apartment prices in RAK (at 11.35%) outperformed that of Dubai (9.39%). This may also be attributed to the value that waterfront master-planned projects generate in the market. Given the scarcity of beach/waterfront lands in Dubai, this has been a key differentiating factor for several new projects in RAK.

    Note: the same analysis is unavailable for villas across the emirates due to the limited availability of credible publicly available data. However, anecdotal evidence suggests that a similar pattern of price growth is expected in the villa segment.


Budget Assumptions and Outcomes of RAK Residential Cluster 

▪  The land cost is calculated at a rate of AED 157 per square foot of Gross Floor Area (equivalent to USD 43 per sqft of GFA).

▪  Construction cost is based on a rate of USD 1,000 per square meter of Gross Floor Area.

▪  Structured parking cost is set at USD 500 per square meter of parking area, and surface parking cost is estimated at USD 200 per square meter of parking area.

▪  The allocation between structured and surface parking is assumed to be 80:20.

▪  Professional fees, covering design development and construction supervision, are estimated at approximately 6% of the construction budget.

▪  Development Management budget aligns with industry standards at around 2% of the construction cost.

▪  General and administrative budget is calculated at 2% of the construction cost.

▪  Statutory fees are based on a rate of USD 2 per square foot of Gross Floor Area

▪  Service connection fee is set at USD 1,000 per residential and retail unit.

▪  A budget for pre-sale and marketing is allocated at 3% of the construction

cost.

▪  A provision for project contingency is established at 5% of the total

development budget.

▪ The total development budget, excluding land, is approximately USD 1,425 per square meter of Gross Floor Area.

▪ The overall Total Development Budget, including land, is estimated to be around USD 134.44 million.

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During our personalized meetings, we will discuss your property goals, budget considerations, and investment aspirations. Benefit from our in-depth market knowledge, insights into the latest trends, and a comprehensive understanding of Ras Al Khaimah’s real estate landscape.

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