Following the coronavirus pandemic, the real estate sector in the United Arab Emirates (UAE) has continued recovering. The prices and demand for the real estate sector have continued to rise in the particular region. It is not just the major emirates in the UAE such as Abu Dhabi and Dubai that are witnessing a great surge, other emirates are also catching up.
Ras Al Khaimah is Catching Up
Ras Al Khaimah is gradually catching up to other major emirates in the UAE. RAK Properties has reported a significant growth in revenue in Q1 2023. The development company from Ras Al Khaimah has reported a 141% increase in revenue in the respective quarter.
RAK Properties has reported that in the respective quarter, they recorded a revenue worth AED 258.58 million. In the same quarter of the past year, revenue recorded was AED 107.25 million.
The reason behind Strong Demand in RAK
There is a very high demand in Ras Al Khaimah for real estate properties. This is mainly because of the new development projects that have been launched in Ras Al Khaimah. These projects have brought in a lot of foreign investments to Ras Al Khaimah.
Even the locals of RAK have started to invest heavily in the new projects currently under development in the city. The hospitality assets of the company have also made a huge impact on the balance sheet by adding more strength to it. It has also added multiple streams of revenue to the balance sheet of the city.
The net profit for Q1 2023 was AED 44.60 million and in the same quarter of 2022, the net profit stood at AED 30.48 million. This shows an over 40 percent growth rate in net profit.
Beginning of a New Phase
Ras Al Khaimah is going through a new phase of growth that is due to the developments taking place in the city. RAK is not the only city in the UAE that is undergoing many developments the entire country that is witnessing such growth.
With the impact of the pandemic going away, the real estate market has started to recover. The recovery is extremely fast for the Gulf countries as they are getting more into technological advancements. The country is opening up its doors to international companies and investors, by developing smart cities.
From the start of 2023 until the end of March 2023, the sales recorded for the units were 679. The numbers have risen quite frantically and it is because of both the local plus the international investors. The demand is constantly rising among both kinds of investors, which is why a spike has been witnessed in both local and international investments.
More Launches to Come in Q2
The second quarter is expected to be even more exciting for Ras Al Khaimah because several development projects are already in the pipeline. According to RAK Properties, the development projects are gaining momentum and they will speed up the process in the second quarter of 2023.
Even the latter quarters have several development projects that await initiation. The entire year 2023 is fully occupied and they are expecting to add more projects for new residential developments in the ongoing year.
RAK Properties has been forging new partnerships with both local plus international investors. The reason behind these partnerships is to launch more residential development projects. Both local and international investors will be able to take advantage of these new projects.
Beachfront Properties are in High Demand
For those aiming to make investments and bring in huge profits, it is the beachfront properties that are in very high demand. RAK Properties has confirmed that is exactly the case, which is why the properties in Ras Al Khaimah are in very high demand.
The emirate is known for offering many properties that have a beachfront, making it highly attractive for investors. Even the people wanting to settle in Ras Al Khaimah have shown great interest in these properties.
Conclusion
It is important to keep in mind that the major emirates are not the only profitable places when it comes to real estate investments. Emirates such as Ras Al Khaimah, is also a big name in the real estate market. This is because the entire UAE is advancing when it comes to technology and modernization. The country no longer wants to rely on oil as its primary source of revenue.
Instead, it wants to switch to technological advancements, which is where the real estate sector is gaining fast momentum. Ras Al Khaimah is proving to be a huge and promising investment for all kinds of investors if they wish to own properties because the city has the potential to grow enormously in the future.
