RAK experiences surge in rents over past year

RAK experiences surge in rents over past year

RAK has seen a steep rise in rental prices year-on-year.

Summary:

  • Rents in RAK have risen by 39% in 12 months
  • This is the result of Arab investors choosing RAK over other areas in the region
  • RAK is also a lot cheaper than Dubai, attracting investors to buy here

There has a significant increase in rents in Ras Al Khaimah (RAK) over the last 12 months.

According to the Cityscape Global, Northern Emirates Report, released by Asteco Property Management, rents in RAK in the United Arab Emirates (UAE) has risen by 39% during this period.

John Stevens, Managing Director of the firm, said this revival of the property market in the UAE has been the result of the “Emirates pro-actively fuelling the economy and consequently their respective real estate markets”.

He stated that this boost could be the result of an increase in Arab investors buying property in the UAE, as a result of the unrest in the wider Middle East region.

In addition to this, RAK offers cheaper opportunities to buy than Dubai, encouraging more property investments in this area, and subsequently resulting in increasing rental prices.

The rent for a two-bedroom apartment in RAK can provide landlords with 40,000 AED (£6,739) per year.

RAK has also seen a rise in the number of tourists visiting the Emirate, which will boost demand for properties to rent in the region. RAK Tourism Development Authority reported more than 95,000 tourists visited RAK in August – a 28% rise in the numbers who came in August 2012.

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