RAK’s ready market achieves half-yearly growth with Dh625 mn transactions in H1 2026

Ras Al Khaimah’s residential sector witnessed Dh625 million worth of transactions across its ready market in the first half of 2026, registering 24.1 percent jump from H2 2025 while declining 3.3 percent annually, a report by property consultancy Cavendish Maxwell revealed.

The report attributed the annual drop to the villa segment, where transactions fell by over seven percent year-on-year YoY to roughly Dh298 million. Meanwhile, apartment sales rose negligibly 0.7 percent to nearly Dh328 million.

The market’s quarterly transactions reached almost Dh354 million in Q2, up nearly a third compared to Q1, with apartments securing nearly Dh156 million worth of sales and villas just over Dh198 million.

Price points saw minimal growth; apartments rose by 6.5 percent YoY in first half, while villa prices climbed almost six percent. Sales prices declined slightly over the last three months. Apartments were down 0.7 percent and villas 0.2 percent.

Rents in RAK were also up, with apartments commanding over seven percent more and villas eight percent more in annual leasing costs compared to H1 2025. Quarterly performance dipped 1.4 percent in the apartments sector. On the other hand, villa rents grew a percent in the same period, suggesting that apartments rents are more sensitive to the current cautious environment.

Around 600 new residential units were delivered in RAK in H1 2026, with another 1,600 expected in H2. The emirate has 13,800 units in the pipeline until 2028. This year will see a total of 2,200, followed by 4,700 in 2027 and 7,500 in 2028. Demand absorption, which will depend on continued employment growth and the attraction – and retention – of residents, is an important factor for future market performance.

Yousir Habib, Associate Director at Cavendish Maxwell Ras Al Khaimah, said, “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,” he added.

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