Expert Advice: A guide to investing in the RAK property market
Every month, on MyBayut, we get in touch with some of the most influential and leading experts in the UAE real estate market to share some key insights on various property-related topics. This month Bayut is in conversation with Neema Kataria, Managing Partner of Hunt & Harris Real Estate, who has shared her expertise with us on how to go about investing in the real estate market in Ras Al Khaimah (RAK). Let’s take a look at what advice she had to offer for those considering investing in RAK.
Villas vs. APARTMENTS in Ras al Khaimah
RAK is one of the Emirates in the UAE that has a huge potential for investors. Anyone looking at investing in RAK should note that the apartments are more popular than villas. This is because of two key factors, the first one being the price point. When it comes to price, the apartments for sale in RAK are more affordable than the villas or townhouses and so, they tend to garner a higher interest. The second reason why apartments in RAK are more popular is that there is a larger catalogue of that property type than villas or townhouses, making it more widely available.
According to Neema, the most popular areas for renting and buying properties in RAK are Al Hamra Village and Al Marjan Island. Both these areas offer a unique lifestyle to its residents – while Al Hamra Village offers a modern village vibe with a touch of luxury, the properties on Al Marjan Island offer a scenic waterfront lifestyle much like that of the Palm Jumeirah. Each boasting its own set of luxuries and amenities, these are definitely the best places to live in RAK.
TIPS for investing in RAK
Neema tells us that the average expected ROI in RAK that any investor can expect to receive would be around 7-9%. However, to be able to invest in RAK and receive a good return on investment (ROI) having a strategy in place is essential. So whether it is to buy an apartment or villa, to be able to invest in RAK, the following should be considered:
- Location of the property
- Cash vs Finance purchase
- Short-term vs long-term rentals
Having a fair idea about these three aspects can help you make the right decision when considering investing in RAK. However, apart from this Neema also outlined a few things first-time property buyers should keep in mind when considering investing in the real estate market in RAK. Since the property market in RAK isn’t the same as the rest of the UAE, where there are unified tenancy contracts, Neema’s advice for first-time property buyers is to make sure to do enough research before going ahead and making any decision.
The agent you use is very important in RAK, so you need to be aware of who you’re working with. Going through the company website for testimonials and google reviews of the agent should help you get a fair idea. Knowing how long the agent and agency have been present in the RAK property market is another important thing, first-time property buyers should note. The real estate agencies in RAK you work with should be regulated and have a bank guarantee with the government.
Prospects of the real estate market in RAK
The RAK property market follows similar price trends to what is seen in Dubai. If the prices drop in Dubai, the prices for properties in RAK follow suit. This happens because as the prices go down in Dubai, the residents living in RAK move back to Dubai due to the lowered cost of living. Neema does say that even though the price trends in RAK follows suit with Dubai’s property price trends, there are a lot of new upcoming projects in RAK that are building in a strong portfolio of investment opportunities in the emirate. Neema predicts that all this is going to add a lot of value to the RAK property market by enhancing tourism and also providing a higher quality of living.
about Neema Kataria
As the Managing Partner of Hunt & Harris, Neema Kataria has over 16 years of expertise in the real estate industry. She is proficient in providing highly specialised, personal and professional real estate advice to her clients in Dubai and RAK. So whether you want to buy or sell your properties, Neema will be able to provide you with a detailed strategy and plan to ensure you receive the best ROI.
about hunt & Harris
Hunt and Harris Real Estate is a premium real estate agency in the UAE operating in Dubai, Abu Dhabi and Ras Al Khaimah. It is built on the three pillars of customer service, quality and transparency.
They have made a mark in the UAE real estate market with their dedication for placing the customer’s interest first. They deal with the rent and sale of properties in the UAE including Ras Al Khaimah and offer their expertise for property management services and even have a dedicated team for holiday homes.
We hope you found this article helpful. Would you consider investing in the real estate market in RAK? Let us know in the comment section below. For more updates and insider information about the UAE real estate market, stay tuned to MyBayut – the best property blog in the UAE.
