Research by real estate advisory group and property consultancy, Cavendish Maxwell finds apartment prices in Ras Al Khaimah (RAK) rose by 6.5% year-on-year in H1 2026, with villa prices climbing almost 6% in the same period.
Rents in RAK increased with apartments commanding over 7% more and villas 8% more in annual leasing costs contrasted to H1 2025. Sale prices and rental rates declined slightly over the last three months, indicating early signs of market moderation.
The research also found freehold ready residential transaction values topped AED 625m ($170.18m) in H1, up nearly a quarter on H2 2025 but down 3.3% year-on-year. Approximately 600 new residential units were delivered in RAK in H1 2026, with another 1,600 expected in H2.
“Ras Al Khaimah’s underlying economic environment remains supportive, with continued investment flows, business formation and employment growth providing a foundation for residential real estate demand.
“However, regional uncertainty has led to more caution among buyers and tenants, in turn contributing to a softer near-term price and rental performance. With 13,800 new homes in the pipeline between now and the end of 2028, upcoming supply is an important factor for the market. Increased supply means greater competition between developments, which could result in more measured price and rental growth.
“The opening of Wynn Al Marjan Island – currently anticipated for Autumn 2027 – will be a key medium-term demand catalyst, potentially supporting tourism inflows, stimulating employment and creating additional housing demand, particularly in communities close to Al Marjan Island. Given their potential impact on buyer and tenant sentiment, regional geopolitical developments remain a key factor to monitor in H2.
“However, RAK’s economy has, so far, remained relatively resilient, with continued investment, business formation and employment growth in the last 6 months. H2 performance data should provide a clearer picture on whether the price and rent moderation is temporary or marks a broader shift in market conditions.”
Yousir Habib, Associate Director, Cavendish Maxwell Ras Al Khaimah
RAK’s freehold ready property market secured transactions reached AED 625.2m in H1, down 3.3% in contrast to the same period last year but up 24% on H2 2025. The annual decline could be primarily driven by the villa segment, with transaction values down over 7% year-on-year to just under AED 298m. The apartments segment was stable, with sales values rising 0.7% to nearly AED 328m.
Quarterly transaction values reached almost AED 354m in Q2, up by almost a third compared to Q1, with apartments achieving nearly AED 156m value of sales and villas just over AED 198m. Research indicates while RAK property sales prices rose annually, they had a slight decline in the last three months. Apartments prices were down 0.7% and villa prices 0.2%.
The sales price trend was reflected in the apartment rental sector – an annual rise but a 1.4% decline in rental rates in the past three months. Villas, however gained 1% higher rents in the same period, indicating apartments rents are more sensitive to the current environment.
RAK is increasing home deliveries in the next two years, with 13,800 units in the delivery pipeline until 2028. This year will see a total of 2,200, proceeded by 4,700 in 2027 and 7,500 in 2028. Cavendish Maxwell mentions demand absorption, which is dependent on continued employment growth and the attraction and retention of residents, will be a pivotal factor for future market performance.
